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Jakarta Post

Production forests will reach 10m hectares by 2014: Govt

  • Benget Besalicto Tnb.

    The Jakarta Post

Jakarta   /   Tue, August 11 2009   /  01:59 pm

The government is optimistic its production forests (HTI) will span over 5 million hectares by the year-end, and over 10 million hectares by 2014 as targeted, because the forestry industry can now resort to financing supported by government, an official says. The director general of forest product development at the Forestry Ministry, Hadi Daryanto, on Monday said the ministry had recently issued a regulation allowing trees planted on production forests by forestry companies to serve as collateral for bank loans. In the past, banks were reluctant to provide loans for the forestry industry. "We are now making it safer for banks to grant loans to forestry investors. If forestry companies default on their loans, banks can take over their forest production licenses by asking for the forestry minister's permission," Hadi told The Jakarta Post. Previously, trees could not b...