The Indonesian government is planning a 46% hike in timber industry royalties and fees next year on the back of expected growth in the country’s wood production.
Forestry minister Malam Sambat Kaban said the government wants to charge Rp1.9 trillion (US$193m) in 2006, assuming timber production reaches 8 million m3. This year’s timber output is predicted to reach 5.4 million m3.
The revenues would consist of Rp1.04 trillion in reforestation taxes, Rp 868.5bn in timber royalties and logging permit fees totalling Rp6.6bn.
Mr Kaban said the rise in timber production would be mainly due to reconstruction work in tsunami-hit Aceh province. State timber company Perhutani is also expected to boost its output to 26.6 million m3.
He said revenues from logging permit fees would grow because of plans to sell off permits for 414,000ha of forest.
