In a bid to prevent open-pit mining in protected forests, the Indonesian Forum for the Environment (Walhi) is fund-raising to "rent" forests so that major mining companies cannot.

The move is a response to the 2008 government regulation on non-taxable income, which allows open-pit mining in protected forests. The regulation stipulates that open-pit mining operators in protected forests only need to pay between Rp 2.25 million and Rp 3 million per hectare per year as compensation to the government.

On Monday, Walhi handed over Rp 1.6 million (US$176) collected from the public to the Finance Ministry.

Walhi forest campaigner Rully Syumanda said the forum had also received positive responses from the international community, including the United States, Norway and Britain.

"They are now waiting for our instructions on how to transfer the money," he said here Wednesday.

Walhi, who has called for donations on its website (www.walhi.or.id), has also received a massive response from ordinary Indonesians, Rully said.

"We just received a call from a community in a Depok bus terminal who wants to transfer money. They have also expressed their concern about the policy," Rully said.

Former environmental minister Nabiel Makarim welcomed the move by donating Rp 50,000. Rully said Nabiel's donation could be used to rent about 166 square meters of protected forest per year.

"Please, use this money to rent the protected forest. I also don't want the land to be used for open-pit mining," Nabiel said. "Such a policy will only allow businesses to destroy the forests. We need to reject it soon."

Nabiel, now heads the research and development agency of the Indonesia Democratic Party of Struggle (PDI-P).

The head of muslim group Muhammadiyah, Din Syamsuddin, and singer Franky Sahilatua each promised to donate Rp 30 million to be used to rent 10 hectares of protected forest for two years.

The government is facing increasing opposition from green activists after issuing the regulation, but has insisted it will go ahead with the plan, using the fees to "regenerate" the country's ailing forests.

President Susilo Bambang Yudhoyono and Forestry Minister MS Kaban previously said only 13 open-pit mining companies would be eligible to operate in forests, after they secured the permits from Megawati Soekarnoputri's government.

But a week later, Energy and Mineral Resources Minister Purnomo Yusgiantoro told mining investors that open-pit mining companies could soon apply to operate in protected forests.

Forest watchdog Greenomics Indonesia condemned the statement, saying the government had publically lied about the regulation.

"We don't know why the government is looking for so many ways to allow open-pit mining in protected forests," Greenomics executive director Elfian Effendi said.

He said the mining sector would contribute only 0.17 percent of the Rp 1.5 trillion of the 2008 state budget, far lower than the ecological cost of Rp 70 trillion per year from the policy.

Elfian said the government had many reasons to stop open-pit mining in protected areas, as has been done by other forestry nations.

"The government of Costa Rica has prohibited open-pit mining in protected forests since August 2002," he said, adding that Ecuador and Argentina have also banned open-pit mining in protected forests since August 2007.

"It is a global trend. President Susilo can follow it," he said.

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