Rogue timber company facing sanctions<\/p>\n
JAKARTA (JP): A House of Representatives commission has urged
\nthe government to revoke logging concessions held by timber
\ncompany PT Erna Djuliawati following reports that the company is
\nguilty of logging in protected areas of forest in West and
\nCentral Kalimantan.<\/p>\n
Sjahrani Sjahrin, vice chairman of House Commission III for
\nagriculture, forestry and plantations, said commission members
\nwere now waiting for a report from a Ministry of Forestry and
\nPlantations' team sent to investigate the allegations.<\/p>\n
\"If the company is proven guilty, its logging contracts should
\nbe revoked,\" he said.<\/p>\n
Last week, the head of the ministry's West Kalimantan office,
\nHings A. Karim, alleged that Erna had logged areas of
\nconservation forest around Mount Bhiwa in West Kalimantan and
\nBeruang Hill in Central Kalimantan.<\/p>\n
He also alleged that the company's plywood mill on the upper
\nKapuas river was using illegal logs.<\/p>\n
Hings said his office would investigate the allegations.<\/p>\n
\"We have strong indications that the company is involved in
\nthe illegal timber trade because its plywood mill still has a
\nsufficient supply of logs, despite the fact that its concession
\narea in West Kalimantan is no longer productive.<\/p>\n
\"Besides, Erna's plywood mill is in an ideal location for
\nusing illegal logs because it is situated upstream on the Kapuas
\nriver,\" he pointed out.<\/p>\n
Minister of Forestry and Plantations Muslimin Nasution said
\nearlier this month that he had sent a special team to investigate
\nthe reports.<\/p>\n
PT Erna Djuliawati holds two logging concessions, one for
\n102,000 hectares of forest in West Kalimantan and the other for a
\n199,831-hectare area in Central Kalimantan. Both concessions were
\nissued in 1979.<\/p>\n
Erna is a subsidiary of the widely diversified Lyman Group,
\ncontrolled by businessman Osbert Lyman. The group is among the
\ncountry's 33 leading timber groups.<\/p>\n
Muslimin said that both of the company's concessions were due
\nto expire in March 1999. The ministry has given its approval to
\nan extension of the company's concession in Central Kalimantan,
\nbut has refused to extend the West Kalimantan operation, citing
\npoor management of the forest area as the reason.<\/p>\n
PT Erna executives refused to comment when contacted on
\nWednesday. (gis)<\/p>",
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