The Political Economy of Fiber, Finance, and Debt in Indonesia's Pulp and Paper Industries  

Oleh:

Barr, Christopher

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Indonesian Quarterly vol. 29 no. 02 (2001), page 173-188.
Topik: Debt; Financ; Fiber; Indonesia; The Political Economy

Ketersediaan

Perpustakaan PKPM Nomor Panggil: I19 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

This article examines the factors that have led Indonesian pulp producers to make large-scale investments in processing facilities without first securing a legal and sustainable raw material supply. It is argued that the country's pulp and paper conglomerates have been willing to invest billions of dollars in high-risk projects because their owners have been able to avoid much of the financial risks involved. Three factors that have allowed them to do so are: (1) heavy government subsidies, including access to wood from natural forest at costs well below its stumpage value; (2) weak regulation of Indonesia's financial sector; and, (3) failure on the part of international financial institutions to adequately assess the risks involved in pulp and paper investments. The paper concludes with several policy options to promote sustainability, including the elimination of the wood supply subsidy to the pulp industry, the introduction of a credible independent monitoring program of plantation development and a moratorium on new pulp and paper processing capacity extensions until public audits of companies' pulp wood supply plans are carried out.

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