Pulp firms accused of withholding reforestation funds<\/p>\n
Haidir Anwar Tanjung, The Jakarta Post, Pekanbaru, Riau<\/p>\n
A timber association executive accused pulp and paper firms PT
\nIndah Kiat Pulp & Paper and PT Riau Andalan Pulp & Paper of
\nwithholding billions of rupiah in reforestation funds by
\nmanipulating production reports to Riau's forestry authorities.<\/p>\n
Chairman of the expert board at the Indonesian Timber Business
\nAssociation (APKOI), Viator BB, said Riau received Rp 48 billion
\n(about US$5.39 million) in reforestation funds from both firms in
\n2001.<\/p>\n
That amount, however, should had been nearly 10 times higher
\nor at least Rp 460 billion that year, he said on Wednesday.<\/p>\n
Viator based his estimates on Indah Kiat and Riau Andalan's
\nproduction capacities. He said their production rates should have
\nrequired them to pay more in reforestation funds.<\/p>\n
Spokespersons for Indah Kiat and Riau Andalan dismissed the
\ncharges as rubbish.<\/p>\n
But environmental activist Bakhti Sianturi said both firms
\nmight withhold between Rp 600 billion and Rp 800 billion in
\nreforestation funds every year.<\/p>\n
He charged Indah Kiat and Riau Andalan with manipulating their
\nreports on the type, size and volume of their forestry products.<\/p>\n
Falsifying a report to make it appear that a timber company
\nwas producing raw scrap material instead of logs could save the
\ncompany over 90 percent on its mandatory monthly reforestation
\npayments, Bakhti said.<\/p>\n
A company is required to pay between $10 and $12 in
\nreforestation funds per cubic meter if they produce logs. But
\nthey must pay only Rp 2,000 per cubic meter if they produce scrap
\nraw material, Bakhti said.<\/p>\n
\"This is where the biggest manipulation occurs,\" said Bakhti,
\na director at non-governmental organization Youth Care. \"If we
\nlook at a plant's production capacity, the manipulated funds
\ncould amount to between Rp 3 billion and Rp 4 billion a month.\"<\/p>\n
He claimed to have \"authentic data\" regarding manipulation by
\nIndah Kiat and Riau Andalan.<\/p>\n
Bakhti and APKOI executive Viator said they planned to report
\ntheir findings to the local prosecutor's office.<\/p>\n
Indah Kiat spokesman Afrizon called the charges groundless and
\nabsurd.<\/p>\n
He said the company obtained its raw timber after first
\nsecuring clearance from the forestry ministry. According to him,
\nthis makes it impossible to manipulate the amount of
\nreforestation funds the company is required to pay.<\/p>\n
\"The reforestation funds are handled by the forestry office,\"
\nAfrizon said. \"It's impossible for us to obtain timber without
\nthe forestry office knowing about it.\"<\/p>\n
Riau Andalan spokesperson Fachrumnas MA Jabbar said his
\ncompany always referred to the forestry office in obtaining its
\nraw materials.<\/p>\n
\"We have evidence of our payment of reforestation funds,\"
\nFachrumnas said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pulp-firms-accused-of-withholding-reforestation-funds-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}