European Forestry Deal with Indonesia Long Overdue – AAA

The European Union's deal with Indonesia to help reduce illegal logging, laundering and other outlawed forestry activities has been welcomed by Alternative investment advocacy and analysis organization, AAA, who say that the move has been long overdue.

Boston, MA, May 09, 2011 -- The European Union's deal with Indonesia to help reduce illegal logging, laundering and other outlawed forestry activities has been welcomed by Alternative investment advocacy and analysis organization, AAA, who say that the move has been long overdue.

The two regions have signed a Voluntary Partnership Agreement on Forest Law Enforcement Governance and Trade (FLEGT–VPA). The agreement is intended to prevent the export of illegal timber from Indonesia, which is a rainforest-covered country, and the illegal import of timber into the EU.

EU Trade Commissioner, Karel de Gucht, said, "Indonesia is not only the first Asian country to conclude VPA negotiations with the EU, but also by far the largest timber exporter to enter into such an agreement."

AAA partner Anthony Johnson, an experienced fund manager and analyst, said, "The partnership agreement between the EU and Indonesia, whilst long overdue, is great for the international efforts to reduce deforestation and promote sustainable forestry."

"Brazil is another country that has been fighting deforestation in recent years by passing laws discouraging the use of timber from native plants, which has benefited the country's rainforests in a similar way to how this new agreement will benefit Indonesia."

Alternative Asset Analysis advocates investment in alternative asset classes, with emphasis on ethical and sustainable projects, such as the proliferation of non-native forestry plantations in Brazil run by firms like Greenwood Management and offered as an investment option by managers like Global Forestry Investor.

Indonesia's Forestry Minister, Zulkifli Hasan, said that the signing of the deal was a "breakthrough" in the fight against illegal logging and the trading of illegal timber with the EU. He added that the agreement will be fully implemented within two years. "We are expecting to ratify the agreement in September, and the full implementation of the VPA will be in 2013," he explained.

In addition to the partnership agreement, the EU is helping to boost the local Indonesian economy by investing a further €30 million to support business in the country. De Gucht explained that the funding "includes a program to support Indonesian businesses (ACTIVE), the Trade Support Program (TSP) II to support the Indonesian government in the field of export quality infrastructure and the Trade Cooperation Facility (TCF), a flexible mechanism to support attracting investments to Indonesia."

So far, more than half a million jobs have been created as a result of investment from over 700 European companies in Indonesia. "Supporting these kinds of partnerships deals with financial help to ensure developing economies have a chance to succeed without the illegal logging industry is vital," added Johnson.

So far, more than half a million jobs have been created as a result of investment from over 700 European companies in Indonesia.

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-898-6317
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com

This release was published on openPR.