Govt determined to recover Rp 675b reforestation funds<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The government is considering various options, including
\nfiling criminal charges, to recover some Rp 675.59 billion
\n(US$76.1 million) in reforestation funds lent to 14 industrial
\ntimber plantation (HTI) companies whose licenses were recently
\nrevoked.<\/p>\n
\"We have a few options from the most lenient, such as ordering
\nthem to repay the funds, to the toughest, that is bringing them
\nto court to face criminal charges for misusing the funds,\" Koes
\nSaparijadi, spokesman for the Ministry of Forestry told The
\nJakarta Post on Thursday.<\/p>\n
According to Koes Saparijadi, the companies could be charged
\nwith misusing the reforestation funds by not using them to
\ndevelop the concession areas as required under their licenses.<\/p>\n
\"The government has been too lenient. So, we shall do
\neverything to recover the funds,\" he said.<\/p>\n
The amount of funds loaned to the 14 errant firms exceeds the
\namount allocated by the government to repair and rebuild
\nelementary schools across the country for next year.<\/p>\n
The government has allocated Rp 625 billion from the state
\nbudget to renovate 90,000 Islamic and state elementary schools
\nacross the country next year.<\/p>\n
By way of another comparison, the funds loaned to the 14 HTI
\nfirms totaled more than half of the reforestation fund target of
\nRp 1.24 trillion set by the government for next year.<\/p>\n
Last month, the Ministry of Forestry revoked the licenses of
\n14 HTI companies after an assessment showed they were not
\nfinancially and technically sound enough to carry out the
\nproject.<\/p>\n
The fourteen companies included PT Kiani Hutani Lestari in
\nEast Kalimantan, which is owned by jailed tycoon Mohammad \"Bob\"
\nHasan, and PT Menara Hutan Buana in Central Kalimantan, which is
\nowned by former president Soeharto's stepbrother, Probosutedjo.<\/p>\n
Dissatisfied with the decision, 13 companies filed a class
\naction suit against the ministry at the Jakarta Administrative
\nCourt, the hearing of which is still in progress.<\/p>\n
The indication that the funds were misused was apparent in
\ntheir poor performance showing an average success rate of 20
\npercent, Koes said.<\/p>\n
Of the total area of 989,079 hectares awarded to the
\nconcessionaires, by Nov. 5 of this year they had managed only to
\ndeveloped industrial timber plantations covering 188,950
\nhectares, despite the fact that the government had provided them
\nwith loans.<\/p>\n
\"If they had used the loans properly, the plants would have
\ngrown and the companies would not be running at a loss,\" he
\nadded.<\/p>\n
At present, the Ministry of Forestry plans to revoke the
\noperating licenses of an additional 13 industrial timber
\nplantation companies for failing to comply with sustainable
\nproduction requirements.<\/p>\n
Revocation of operating licenses of HTI companies is part of a
\ngovernment move to restructure the badly managed forestry
\nindustry.<\/p>\n
Economists and environmentalists, who have often voiced
\nconcern over corruption in the industry, said the failure of the
\nHTI firms to meet their obligations had proved the charges of
\nrampant corruption in the industry.<\/p>\n
They said technically, it was impossible for HTI firms to fail
\nto develop timber plantations as they had received many
\nfacilities from the government to carry out the projects. At the
\nstart of the operation, they are allowed to clear old growth
\nforests in their concession areas and sell the trees to raise
\nfunds for the development of timber plantations. They are also
\nprovided with interest-free reforestation funds by the
\ngovernment.<\/p>\n
14 HTI companies: PT Kiani, PT Menara Hutan Buana,
\nPT Acehnusa Indrapuri (Aceh), PT Adindo Hutani Lestari
\n(East Kalimantan), PT Tusam Hutani Lestari (Aceh),
\nPT Rimba Wawasan Permai (Aceh), PT Rimba Timur Sentosa (Aceh),
\nPT Surya Hutani Jaya (East Kalimantan), PT Intraca Hutani
\nLestari (East Kalimantan), PT Wana Tani Lestari (Southeast
\nSulawesi), PT Hutan Barumun (North Sumatra), PT Anangga
\nPundinasa (East Kalimantan), PT Rimba Equator Permai (West
\nKalimantan), PT Silva Inhutani Lampung (Lampung).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-determined-to-recover-rp-675b-reforestation-funds-1447893297",
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