It is reported that Indonesia will allow some infrastructure projects deemed in the public interest such as toll roads and geothermal energy plants to operate in protected forests.
Under Indonesian law, it is currently forbidden to undertake any kind of activity that could impact on a forest conservation area.
But chief economics minister Mr Hatta Rajasa told reporters that the government would issue a new rule to allow some development in forests after discussions between relevant ministers. He said that "For the public interest such infrastructure projects and geothermal projects can use protected forests."
He added that the users of protected forests would have to compensate by setting aside twice as much land within another part of the province for use as forested land. The regulation would give investors certainty and denied it would disturb forest conservation.
He said that "We know that there are many geothermal projects located in protected areas. That's why this regulation is part of the government's 100 day program."
The administration of President Susilo Bambang Yudhoyono, who started a second term in October, has set 100 day programs focused on removing bottlenecks that have stalled investment and infrastructure development in Southeast Asia's biggest economy.
Overlapping regulations on the environment and resource development frequently complicate plans to develop projects in Indonesia, although green groups also complain that firms are sometimes wrongly given permission to exploit forests.
Indonesia also currently has one of the fastest rates of deforestation in the world that threatens to swiftly erode its dwindling untouched tracts of tropical forests.
At the same time, the developing nation desperately wants to speed up spending on airports, roads, ports and other infrastructure to help reduce inefficiencies and speed up economic growth in order to reduce poverty and unemployment.
On energy, Indonesia has established two crash programs to increase power generation by 10,000 MW in a bid to resolve chronic power shortages in the country.
(Sourced from www.reuters.com)
