Army-linked body to lose forestry license

JAKARTA (JP): The government will revoke logging rights owned by a foundation under the Ministry of Defense, Minister of Forestry and Plantations Muslimin Nasution said on Wednesday.

Muslimin told journalists after an economic Cabinet meeting that President B.J. Habibie had decided to revoke Presidential Decree No. 44/1994, which gives logging rights for the "security belt" area along the border of East and West Kalimantan to Maju Kerja Foundation.

The government will then revoke the foundation's business license. The foundation currently controls over 834,500 hectares of forests in West Kalimantan and 265,000 hectares in East Kalimantan.

Muslimin said the foundation did not take seriously its responsibility of developing the forest and had allowed destruction in its concessions to worsen by allowing rampant timber theft.

"The President ordered (ministers) to put the forestry sector in order without playing favorites," Muslimin said.

The limited Cabinet meeting was also attended by Minister of Defense/Armed Forces Commander Gen. Wiranto.

Wiranto, however, denied Muslimin's allegation that Maju Kerja Foundation neglected the concessions and said that the decision to revoke its logging rights was more driven by the government's will to spread control over forest concessions to more people.

"In the past, one party could own millions of hectares in concessions. Now the government wants to correct it so that there will be more opportunities available to more people over forest concessions."

During the 32-year rule of former president Soeharto, the government granted unlimited acreage to private investors, most of whom were kin or cronies of the ruler.

Control

According to Ministry of Forestry and Plantations data, the country's four largest forestry groups control over 10 million hectares of forests.

The Kayu Lapis Indonesia Group, the largest, holds concession rights over 3.5 million hectares of forests, the Djajanti Group has 2.9 million hectares, the Barito Group owns 2.7 million hectares and the Kalimanis Group possesses 1.6 million hectares.

Muslimin said the government could not just take over concessions from those groups at whim as it would be against the law.

Instead, Muslimin said, the government would impose progressive taxes and levies on them so that they would relinquish their control over less productive forests.

"Legally, we cannot just cut their concession areas. That's why we will introduce progressive levying so that businesspeople controlling 100,000 hectares of forests will pay double from those who have 50,000 hectares."

The government will also prioritize small and medium enterprises and local cooperatives to manage concessions of below 50,000 hectares whose durations have lapsed or which were taken over by the government from errant holders.

As for concessions of between 50,000 hectares and 100,000 hectares, the government will auction them openly to attract the most qualified firms or cooperatives to ensure that the forests are managed in an environmentally sustainable manner.

Under the new regulations, each concessionaire will be limited to a maximum 100,000 hectares in a province. Although concessionaires will be allowed to manage forests in other provinces, the total area under their management cannot exceed 400,000 hectares. (gis/rid)