Gunanto E.S./Ezther Lastania, Jakarta – The government will give fiscal incentive to 20 Industrial Timber Estate (HTI) companies.

Government regulation 1/2007 regarding income tax for certain business activity in certain areas regulates this incentive policy. Forestry minister, Malam Sambat Kaban, said that these incentives are to encourage the timber industry in Indonesia.

"We will give incentives to all timber groups, whether they are working in rubber, eucalyptus, acacia, or carpentry wood," said Kaban at the office of the Coordinating Minister for the Economy, on Monday (21/04).

The incentives are to be given to companies with land of 50,000 hectares and a minimum factory capacity of 60,000 tons per year. The incentive will be for two years, from when companies start planting.

Kaban said that in the future, it is targeted that between 7 and 9 million hectares of forest will be cultivated. "At least 5 million hectare in two years," he said. The Indonesian timber industry has the potential to be a world player.

If it can achieve between 7 and 9 million hectares, Indonesia will become one of the three largest timber players in the world. Currently, Indonesia is number 12.