Army-linked body to lose forestry license

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)