ICTI takes over Kayan's concessions<\/p>\n
JAKARTA (JP): The Ministry of Forestry has transferred 290,000
\nhectares of forestry concessions previously held by plywood maker
\nPT Kayan River Timber Product in East Kalimantan to PT
\nInternational Timber Corporation Indonesia (ITCI).<\/p>\n
\"We have to execute the transfer because Kayan River's
\nmanagement of the concession was unsound,\" Head of the East
\nKalimantan office of the Forestry Ministry, Walter Nadapdap, was
\nquoted as saying by Antara in Samarinda, East Kalimantan on
\nTuesday.<\/p>\n
\"Photographs show that the concession no longer has a virgin
\nforest area,\" Nadapdap said, adding that the government had not
\napproved Kayan River's logging plans for two years because of
\nseveral violations.<\/p>\n
The official did not elaborate which forestry regulations the
\ncompany had supposedly violated. Nadapdap only said that the
\nKayan River's concession rights would expire this year.<\/p>\n
Indonesian regulations stipulate that all forests are state
\nproperty but can be cultivated by the private sector for a
\nlimited time and under tight selective-cutting regulations.<\/p>\n
Kayan River is controlled by plywood tycoon Yos Soetomo, who
\nwas charged in the 1980s with tax evasion, corruption and
\nsmuggling. He was eventually acquitted under an unexpected ruling
\nby the Supreme Court.<\/p>\n
ITCI is jointly owned by the Army's Kartika Eka Paksi
\nFoundation, timber baron Mohammad (Bob) Hasan, the ruling Golkar
\nfaction, and several foundations headed by President Soeharto and
\nthe Bimantara Citra Group, which is chaired by one of President
\nSoeharto's sons.<\/p>\n
According to available data, ITCI currently controls
\nconcessions of more than 500,000 hectares in East Kalimantan. The
\ncompany has also won praise from various officials and ecological
\nexperts for its sound management.<\/p>\n
\"We picked ITCI because it has a good record in forestry
\nmanagement,\" Nadapdap insisted.<\/p>\n
ITCI, according to the report, would start managing the
\nconcessions next year by cooperating with the state-owned PT
\nInhutani I.<\/p>\n
The report also said that Yos Soetomo would be allowed to
\nmaintain some stakes in the concessions so he could continue to
\nprocure raw materials for his plywood plant in the area.<\/p>\n
Soetomo denied any wrongdoing.<\/p>\n
\"The takeover has been planned for a long time and I did not
\ncommit any mistakes,\" he was quoted as saying.<\/p>\n
Soetomo also said that the takeover agreement will not lessen
\nhis right to secure raw material for his plywood mill, which
\nemploys almost 5,000 workers. (hdj)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/icti-takes-over-kayans-concessions-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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