Five state-owned forestry companies in Indonesia are to be shut down by the government.
The firms’ combined control of nine million ha of forest will be transferred to local communities and private firms.
The decision, just waiting for the president’s seal of approval, follows a fall in profitability at the companies and their subsequent failure to undertake forest rehabilitation.
Government sources said the companies, Inhutani I to V, were no longer able to perform sustainable forest management for the production of logs for international and domestic markets.
