Plantation pays $1.1 million fine for burning land<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government and a Malaysian plantation company agreed on a
\nUS$1.1 million penalty, which the latter must pay for causing
\nhaze by illegally burning plantation land in Riau.<\/p>\n
It is the first time such a deal has been negotiated between
\nthe government and a company.<\/p>\n
State Minister of the Environment Nabiel Makarim described on
\nWednesday the agreement between the government and the Malaysian-
\nbased PT Adei Plantation as a win-win solution.<\/p>\n
"The money can be used to finance reforestation, and the
\ncompany will not go bankrupt because of the agreement," he told
\nreporters. The agreement was signed last week.<\/p>\n
Nabiel said the government was considering an appropriate
\nplace to carry out a US$ 1.1 million reforestation program.<\/p>\n
"The program will not be located in PT Adei's plantation area,
\nas the company is required to do its own replanting," he said.<\/p>\n
The agreement was reached despite the Supreme Court upholding
\na ruling sentencing Adei's president director, a Malaysian
\nnational identified only as Goby, to eight months in prison and a
\nRp 100 million (about US$11,200) fine for the plantation fires.<\/p>\n
Authorities at the Riau Environmental Impact Management Agency
\n(Bapedalda) found 17 fires in Adei's plantation areas in 1999 and
\n2000.<\/p>\n
Officials estimated fire had engulfed some 3,000 hectares of
\nAdei's plantation land, worsening haze in Riau.<\/p>\n
In early 2001, prosecutors took the case to court in the
\nprovincial capital Pekanbaru, demanding a four-year jail sentence
\nfor Adei's president director, Goby.<\/p>\n
The Pekanbaru District Court found Goby guilty and sentenced
\nhim to two years in jail. Goby appealed against the verdict.<\/p>\n
The Riau High Court then lowered his sentence to eight months
\nand fined him Rp 100 million.<\/p>\n
Prior to Adei's case, a coalition of 13 non-governmental
\norganizations and community groups from North Sumatra had tried
\nbut failed to secure Rp 50 billion in compensation from various
\ntimber associations for fires they accused them of causing in
\n1997 and 1998. A high court overturned an earlier verdict
\nrequiring the associations to pay the Rp 50 billion.<\/p>\n
The islands of Sumatra and Kalimantan often have to cope with
\nhaze during the dry season. Thick haze occurs in many provinces
\non the two islands as well as in neighboring Singapore and
\nMalaysia.<\/p>\n
Besides natural causes, fire is often caused by locals or
\ncompanies burning bushland, plantation or forest areas.<\/p>\n
Burning plantation areas is prohibited under Law No. 23\/1997
\non the environment, but many locals and companies often choose to
\nclear land with fire.<\/p>",
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"sponsor": "Okusi Associates",
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