Economic rent and the appropriate level of forest products royalties in 1996


COVER

 

 

 

 

Table of Contents





The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.



Adrian Whiteman
Report number: SMAT/EC/96/1



Senior Management Advisory Team
Indonesia-UK Tropical Forest Management Programme
Gedung Manggala Wanabakti
Blok IV, lt. 6
Jl. Jend. Gatot Subroto
Jakarta 10270
Tel: (62) 021 573 1815
Fax: (62) 021 570 1109
E-Mail: itfmp@server.indo.net.id


ECONOMIC RENT AND THE APPROPRIATE LEVEL OF FOREST PRODUCTS ROYALTIES IN 1996

SUMMARY

This report was prepared in response to a request from the Ministry of Forestry to give advice about the current (1996) level of economic rent in the Indonesian forest sector, and the amount of economic rent which is collected by the government with current forest levies.

The report presents the most recent figures on log and product prices collected by the ITFMP and, with recent production and capital cost data, shows the current level of economic rent obtained by plymills and sawmills; and forest concessions (HPHs) in Sumatera/Sulawesi; Kalimantan/Maluku; and Irian Jaya/Nusa Tenggara Barat (NTB).

The report finishes by showing the proportion of economic rent which is collected by the government with current forest levies, and makes recommendations about the amount by which levies could be raised to collect more of the economic rent.

RINGKASAN

Laporan ini disajikan atas permintaan Departemen Kehutanan untuk saran-saran atas tingkat rente ekonomi saat ini (1996) pada sektor Kehutanan di Indonesia, serta jumlah penghasilan rente ekonomi yang diperoleh Pemerintah melalui pungutan yang berlaku sekarang ini.

Laporan ini menyajikan gambaran terbaru atas harga kayu bulat dan produksi yang dikumpulkan oleh ITFMP dengan data harga produksi dan modal, yang menunjukkan tingkat rente ekonomi saat ini yang diperoleh dari pabrik kayu lapis dan penggergajian kayu; HPH-HPH di Sumatra/Sulawesi; Kalimantan/Maluku; dan Irian Jaya/Nusa Tenggara Barat (NTB).

Laporan ini diakhiri dengan penyajian proporsi rente ekonomi yang diperoleh Pemerintah melalui pungutan-pungutan saat ini, dan rekomendasi mengenai penetapan suatu jumlah yang mana pungutan-pungutan dapat dinaikkan untuk mendapatkan rente ekonomi lebih besar.

INDONESIA-UK TROPICAL FOREST MANAGEMENT PROGRAMME (ITFMP)

The ITFMP is a programme of technical co-operation activities funded jointly by the Indonesian Department of Forestry and the Overseas Development Administration (ODA) from the UK. The overall purpose of the programme is to improve the capacity of Government, industry, and local communities to implement responsive and responsible management policies and practices in Indonesia’s natural forests. The ITFMP comprises five projects working in the areas of policy advice (the Senior Management Advisory Team), sustainable forest management (the Provincial Forest Management project), research, training, and conservation.

This report is presented as advice from the Indonesia-UK Tropical Forest Management Programme to the Indonesian Government. The arguments, conclusions, and recommendations presented here do not represent the official policy of the Ministry of Forestry, Republic of Indonesia, or the Overseas Development Administration of the United Kingdom.

Program Pengelolaan Hutan Tropis Indonesia-UK (ITFMP), adalah kegiatan kerjasama teknik yang dananya berasal dari Pemerintah Indonesia, Departemen Kehutanan dan Overseas Development Administration (ODA) dari Inggris.  Tujuan keseluruhan Program ini adalah meningkatkan kapasitas Pemerintah, Industri dan masyarakat setempat untuk berperan serta dan bertanggung jawab didalam pelaksanaan kebijakan pengelolaan hutan alam Indonesia.  Program ITFMP terdiri dari 5 (lima) proyek yaitu: SMAT (Senior Management Advisory Team); PFM (Provincial Forest Management); Penelitian (Research); Pelatihan (Training) dan Konservasi (Conservation).

Laporan ini dipersembahkan sebagai dukungan dari Program Pengelolaan Hutan Tropis Indonesia-UK untuk Pemerintah Indonesia. Pendapat-pendapat, kesimpulan dan saran yang diuraikan disini tidak membahas kembali ketetapan dari Departemen Kehutanan Republik Indonesia atupun Overseas Development Administration, UK.


Table of Contents

INTRODUCTION

DATA SOURCES

METHODOLOGY

ECONOMIC RENT AND CURRENT LEVIES

THE RELATIONSHIP BETWEEN ECONOMIC RENT AND PRODUCT PRICES

THE MAXIMUM LEVEL OF IHH AT CURRENT PRODUCT PRICES

Appendix 1 Plywood Mill Model production costs

Appendix 2 Sawmill model production costs

Appendix 3 HPH model production costs