The Ministry of Environment and Forestry plans to reactivate Standing Stock Compensation charges to boost non-tax revenue from production forests. Putera Parthama, Director General in the Ministry said 2016 non-tax revenues from the forestry sector were Rp2.7 trillion sharply down on the level in 2015.
Parthama suggested that one of the causes of falling nontax revenues was the gradual decline in output from forestry enterprises much of which stems from the falling prices for Roundwood, especially from plantations.
Forestry enterprises have role in climate change mitigation
The Director General of Climate Change in the Ministry of Environment and Forestry said enterprises can play an important role in the national emission reduction target of 29% by 2030.
In the discussion on ratification of the Paris Agreement on Climate Change it was argued that support from forestry businesses, along with local governments, nongovernmental organisations and indigenous peoples is essential if emission reduction targets are to be achieved.
In the national emission reduction plan the forestry sector is expected to contribute around 17% of the reductions. Other main contributing sectors are energy, waste management and agriculture.
Indonesia, Saudi Arabia seek expanded trade cooperation
Indonesia and Saudi Arabia have agreed to strengthen collaboration in developing mutually beneficial trade strategies, market research and the encouragement of joint activities.
Indonesia’s Trade Minister reported that the two countries will share trade databases to encourage business cooperation.
It was noted that Saudi Arabia is tied into the Gulf Cooperation Council Customs Union and any trade deals must be conducted through this Union.
In related news, the chairman of the Indonesian Chamber of Commerce and Industry (Kadin), has reported that Saudi Arabian entrepreneurs were attracted by Indonesia’s woodcraft products and that there are opportunities to expand trade with Saudi Arabia.
In recent years Indonesia’s trade with Saudi Arabia has been declining, dropping to US$5 billion in 2016 compared to US$8 billion in 2015.