SGS assigned to assess timber companies<\/p>\n
JAKARTA (JP): The government has assigned the Geneva-based
\nSociete Generale de Surveillance (SGS) to assess the
\nsustainability of the forest concessions of timber companies
\nwhich intend to go public.<\/p>\n
Minister of Forestry Djamaludin Suryohadikusumo said yesterday
\nthat the results of SGS's assessment will be disclosed to the
\npublic and submitted to the Capital Market Supervisory Board
\n(Bapepam) for further evaluation.<\/p>\n
\"It is Bapepam that will decide whether the assessed timber
\ncompanies will be qualified to make an initial public offering or
\nnot,\" the minister told reporters during a break in a hearing
\nwith Commission IV (agriculture and forestry) of the House of
\nRepresentatives.<\/p>\n
Djamaludin reiterated that forest-based companies intending to
\nsell shares to the public are no longer required to obtain a
\nletter of recommendation from his office.<\/p>\n
\"They are now instead required to have their forest
\nconcessions assessed by SGS because their business viability and
\nprospects depend on the sustainability of their concessions,\" he
\npointed out.<\/p>\n
A timber company planning an initial public offering of shares
\nwas earlier required to produce a letter of recommendation from
\nthe minister.<\/p>\n
PT Artika Optima Inti's initial public offering, scheduled for
\nlast June, has been postponed due to the absence of a
\nrecommendation.<\/p>\n
Djamaludin explained that SGS had been chosen because it has
\nthe personnel and ability to carry out the assessment.<\/p>\n
\"If PT Surveyor Indonesia and PT Sucofindo, for instance, had
\nthe personnel and capability to conduct the assessment, I'd
\nwelcome them to join. The more surveyor firms involved, the
\nbetter,\" the minister said.<\/p>\n
SGS is the sub-contractor of state-owned PT Surveyor Indonesia
\nin the conducting of pre-shipment inspection of imports to
\nIndonesia.<\/p>\n
Djamaludin added that the assessment of forest concessions is
\ncompletely separate from the assessment of the business and
\nfinancial performance of timber companies.<\/p>\n
\"Obviously, timber firms intending to list their shares on the
\nstock exchanges are also required to make the compulsory public
\nexpose of their business and financial performance to investors,
\nsecurities companies and brokers.\" he added.<\/p>\n
Response<\/p>\n
Bapepam and the Association of Indonesian Wood Panel Producers
\nhailed the minister's decision to ease the requirement on timber
\ncompanies intending to go public, saying the move will encourage
\nmore companies to list themselves on local stock markets.<\/p>\n
At present only two timber companies are listed on the Jakarta
\nStock Exchange (JSX) -- PT Barito Pacific Timber and Sumalindo
\nLestari Jaya.<\/p>\n
Djamaludin said three more timber companies -- PT Kiani
\nLestari, which is controlled by Mohammad Hasan; the Surya Dumai
\nGroup, and PT Artika Optima Inti, a subsidiary of the widely
\ndiversified Djajanti Group -- plan to go public.<\/p>\n
The minister said that although timber companies go public,
\nthe government maintains control of their forest concessions.<\/p>\n
He reiterated a previous ruling that prohibits timber
\ncompanies from including their forest concessions in their fixed
\nassets because the forests are owned by the government.<\/p>\n
\"I don't want our forests to be sacrificed simply for the
\ninterest of their shareholders. The government is still empowered
\nto revoke their concessions if their management does not fulfill
\nthe rulings on sustainability,\" Djamaludin added. (rid)<\/p>\n
Photo -- Page 8<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/sgs-assigned-to-assess-timber-companies-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }