Jakarta – The government plans to scrap the 10% import taxes on logs and raise export taxes on the commodity in a bid to liberalize the forestry industry, economics czar Rizal Ramli said yesterday. The plan is in line with the government's effort to tackle rampant log smuggling.

The senior economics minister will ask the Finance Minister and Industry and Trade Minister to lower import duty imposed on logs to zero percent so that the country's timber industry will use both local and imported logs.

"I have asked the Finance Minister to study this possibility. I hope the Finance Minister and the Minister of Industry and Trade can immediately set higher tax for log exports," Ramli said.

He was accompanied by Forestry Minister Nurmahmudi Ismail and Attorney General Marzuki Darusman during the press conference.

On that occasion, Ramli asked Marzuki and National Police Chief Bimantoro to investigate and bring to court a lawmaker by the initial of AR for allegedly committing illegal logging at the Tanjung Puting National Park. Ramli said he has asked for President Abdurrahman Wahid's approval for the probe.

"The Attorney General's Office has had difficulties investigating AR because he has been backed up by some institutions as well as the regional government where the Tanjung Putting National Park is located," Ramli said.

He also said that the Indonesian Bank Restructuring Agency (IBRA) and the government will soon summon forest concession holders who are under IBRA's control. "We will invite them and ask them to sign an agreement, a pledge that they will manage their forest concessions better," he said.

Ramli said the government is well-prepared to help restructure debts of the forest concession holders if they agree to sign the forest management agreement. "But if they don't want to cooperate with us, then we won't lend our hand to help them" he added.