State treasury to control reforestation funds<\/p>\n
JAKARTA (JP): Forestry Minister Djamaludin Suryohadikusumo
\nannounced plans to tighten control of the use of reforestation
\nfunds yesterday by counting them in the state budget.<\/p>\n
But he did not rule out allocating a portion of the
\nreforestation funds to pulp and paper companies.<\/p>\n
He said the House of Representatives was deliberating a bill
\non nontax revenue, including reforestation funds.<\/p>\n
The bill stipulates all nontax revenue shall be transferred to
\nthe state coffers and be accounted for in the annual state
\nbudget.<\/p>\n
\"Once the bill is passed into law, the government will issue a
\nregulation on the use and account of the reforestation funds,\" he
\nsaid.<\/p>\n
The reforestation funds -- which are raised from
\nconcessionaires -- are currently transferred to the Forestry
\nMinister's account. The allocation and use of the funds are
\ngoverned by presidential decree.<\/p>\n
The funds recently became a hot topic after the disclosure
\nthat Djamaludin lent Rp 250 billion (US$108.70 million) of the
\nfunds to PT Kiani Lestari for its pulp and paper factory in East
\nKalimantan. The firm is owned by timber tycoon Mohamad \"Bob\"
\nHasan.<\/p>\n
Djamaludin said the loan was given to Bob Hasan based on a
\npresidential decree. But he denied the government was favoring
\nBob Hasan, a close friend of the President, saying the funds were
\nalso available to other pulp and paper companies.<\/p>\n
Reforestation funds collected last year totaled Rp 880.7
\nbillion, up from Rp 809.6 billion in 1995.<\/p>\n
Djamaludin said the bill would allow his ministry to use only
\na portion of the funds for reforestation efforts.<\/p>\n
When asked if the ministry might lend the funds to pulp and
\npaper manufacturers, the minister said, \"Let us see what will be
\nstipulated in the government regulations which will implement the
\nbill after its enactment by the House.\"<\/p>\n
In addition to paying reforestation funds, concessionaires are
\nalso obliged to pay forest royalties. According to a 1967 law,
\nthe royalties have to be transferred to the state treasury.<\/p>\n
The government received Rp 592.8 billion in forest royalties
\nlast year, up from Rp 539.3 billion in 1995.<\/p>\n
Djamaludin warned concessionaires not to cheat the government
\nof reforestation levies and royalties by making false financial
\nreports.<\/p>\n
Unlike the current ruling which only threatens cheating
\nconcessionaires with warnings and fines, the cheating companies
\nface jail terms under the bill.<\/p>\n
\"The bill threatens any violator with six years jail. If he or
\nshe repeats the violation within one year, they will get jail
\nterms which are twice as long,\" he said.<\/p>\n
He said the ministry had issued a forestry accounting standard
\nin 1993 which was made obligatory in 1995 but only 24 percent of
\nabout 480 concessionaires followed the standard.<\/p>\n
\"Over the past three years several concessionaires submitted
\nonly one or two financial reports to the ministry. Some of them
\neven have never filed one,\" he said.<\/p>\n
Some companies did not reveal their equity capital in their
\nreports as required by the accounting standard, he said.<\/p>\n
Djamaludin also criticized concessionaires for not being
\nprepared for the implementation of ecolabeling scheduled for
\n2000. (jsk)<\/p>\n
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