Timber firms need no permit to go public<\/p>\n
JAKARTA (JP): Minister of Forestry Jamaludin Suryohadikusomo
\nsaid yesterday that timber companies intending to sell their
\nshares to the public no longer need to require permission from
\nhis office.<\/p>\n
He said that the Ministry of Forestry will instead publicly
\ndisclose the viability of any timber companies intending to sell
\ntheir shares to the public.<\/p>\n
\"The public disclosure will give potential investors a clear
\noutlook about a timber company planning to go public. They will,
\ntherefore, decide for themselves whether or not to buy its
\nstocks,\" he told newsmen at his office.<\/p>\n
A timber company planning an initial public offering of shares
\nwas earlier required to produce a recommendation letter from the
\nMinister of Forestry before selling shares to the public. The
\nminister's recommendation letter, however, did not serve merely
\nas a reference but more as permission. At least two companies
\nhave delayed their initial public offering plans due to the lack
\nof such a recommendation letter.<\/p>\n
Companies<\/p>\n
One of the companies, PT Artika Optima Inti, a timber
\nsubsidiary of the widely diversified Djajanti Group, failed to
\nobtain the letter of recommendation as the minister of forestry
\nconsidered its forest harvesting potency much smaller than the
\ncapacity of its plywood manufacturing mills. The other company,
\nPT Surya Damai, also failed to obtain recommendation for a
\nsimilar reason.<\/p>\n
Jamaludin said recently that if the recommendation letters
\nwere given to those two companies, the government could be
\ncharged with encouraging illegal lumber felling. Timber companies
\noften violate the government's regulations to selectively cut
\ntrees in order to meet the high capacity of their timber
\nmanufacturing units. In addition, they also often buy logs stolen
\nfrom protected forests or nearby forest concession areas.<\/p>\n
\"What really concerns me is that timber companies might only
\ntry to make profits without giving any attention to the forest
\npreservation effort,\" he said.<\/p>\n
The minister said yesterday that his ministry will no longer
\nissue recommendations to timber companies intending to go public
\nbut will instead appoint an independent consultant to assess the
\nquality of a company's forests and the capability to sustain a
\nlumber supply to their timber manufacturing units. He said that
\nthe results of the researches will be publicly announced.(hen)<\/p>",
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