Thu, 18 Mar 2004

16 crooked forest concessionaires published

Muninggar Sri Saraswati The Jakarta Post Jakarta

Disappointed by the government's lack of action, three non- governmental organizations have announced that 16 holders of forest utilization licenses (HPH and HPHT holders) evaded paying a total of Rp 262.04 billion in reforestation fees and forest resource dues (PSDH) in 2003.

Obtaining the latest data from the forestry ministry, the Indonesian forum for the environment (Walhi), the Indonesian Corruption Watch (ICW) and Greenomics Indonesia released a list of indebted companies, which are operating on the islands of Kalimantan, Papua, Sumatra and Maluku.

Elfian Effendy, who chairs Greenomics, urged the government to take firm action against the companies.

"The companies have failed to pay their debts to the state. Besides, the money is very important to support the reforestation program," he said on Tuesday.

The debts are almost equivalent to the Rp 625 billion which the government spent last year on the renovation of around 90,000 school buildings nationwide.

Last month, the NGOs revealed that 601 forest concessionaires, logging license (IPK) holders and log production industries, had evaded paying a total of Rp 1.28 trillion in reforestation fees and forest resource dues.

Both reforestation fees and PSDH are non tax state revenues. The government requires that forest concessionaires contribute to the rehabilitation of forests to compensate for the environmental impact of their activities.

Lucky Djani of the ICW says that the forestry ministry must be tougher on the companies.

"They (the companies) have many convincing reasons to pay their debts. They (the ministry) have the authority to revoke concessions and permits and could land the companies in prison if necessary," he said.

Law No. 20/1997 on non tax state revenues stipulates that companies which fail to pay their debts to the state may be sentenced to prison or fined.

The forestry ministry may also apply Government Regulation No. 34/2002 on forest planning and exploitation which allows the government to revoke the concessions or permits of those who fail to pay reforestation fees and PSDH.

Lucky said the NGOs were considering publishing the names of the owners of the companies if they didn't pay their debts.

"It's necessary for the forestry ministry to blacklist them, both the companies and the owners," he said.

Two years ago, the forestry ministry promised to take firm action against 14 forest concessionaires that failed to pay reforestation funds amounting to Rp 675.59 billion. Whether the government can recover this money remains unclear.

The forestry ministry had issued a regulation requiring concessionaires to pay reforestation fees and PSDH before they commenced activities.

A ministry official said no measures had been taken against the companies, pending verification of the data from provincial administrations across the country.

"Some of them insist that they have paid the money to provincial administrations, while the administrations say that they have not received the money," said the official, who wished to remain anonymous.

The central government has delegated the authority to collect reforestation fees and PSDH to provincial administrations in accordance with regional autonomy.

.rm 70 Indebted forest concessionaires (HPH and HPHT) companies in 2003

Name Area of operation Amount of debt 1. PT Sari Bumi Kusuma Central Kalimantan Rp 51.01 2. PT Kartika Kapuas Sari West Kalimantan Rp 41.27 3. PT Artika Optima Inti Unit II Papua Rp 21.68 4. PT Kendari Tunggal Tbk South Sulawesi Rp 18.41 5. PT Kiani Hutani Lestari East Kalimantan Rp 16.37 6. PT MSK Timber East Kalimantan Rp 16.32 7. PT Budi Nyata Papua Rp 16.01 8. PT Bumi Raya Utama West Kalimantan Rp 12.46 9. PT Artika Optima Unit I Papua Rp 11.73 10.PT Belantara Pusaka East Kalimantan Rp 10.60 11.PT Timber Dana East Kalimantan Rp 10.47 12.PT Prabu Alaska I Papua Rp 9.52 13.PT Minas Pagai Lumber West Sumatra Rp 8.28 14.PT Mangtip Unit I North Maluku Rp 6.26 15.PT Prabu Alaska II Papua Rp 5.82 16.PT Kurnia Musi Plywood South Sumatra Rp 5.81

Source: Greenomics