Breakaway MPI backs govt plan for $48m fund use
Breakaway MPI backs govt plan for $48m fund use
JAKARTA (JP): A breakaway reform group of the Indonesian
Forestry Society (MPI) said on Thursday they supported the
Ministry of Forestry and Plantations' decision to use the
association's US$84 million savings to help cooperatives and two
local banks.
The chairman of MPI Reformasi's investigation team Agus
Miftach said the funds, collected by controversial former MPI
Chairman Mohammad "Bob" Hasan from members of the Association of
Indonesian Wood Panel Producers (Apkindo) was deposited in the
now defunct Bank Umum Nasional (BUN).
BUN, controlled by Hasan, was one of several banks closed last
year as part of the government's massive measures in
restructuring the country's ailing banking industry.
Agus said that due to BUN's current status and its link to
Hasan's business empire, which is now under government
investigation because of its close links with former president
Soeharto, the funds could not be recovered without the approval
of President Habibie.
"If the association can recover the money, it would be better
to put it toward the government's programs, instead of returning
the money to the members," he said.
He said that Minister of Forestry and Plantations Muslimin
Nasution has ordered that around $27 million of the money be
channeled into Bank Bukopin and Bank Mualamat Indonesia (BMI) to
help the two banks boost their capital.
"The minister also ordered that the remaining $57 million be
earmarked to the Indonesian Forestry and Plantation Cooperative,
which will use the funds for forest rehabilitation programs and
social programs for people living near forests," he said.
Agus said that Bukopin and BMI would receive around Rp 150
billion and Rp 50 billion respectively to help with their
recapitalization programs.
MPI Reformasi's chairman Sofyan Siambaton said that this money
accounted for about 4 percent of the $2.04 billion collected by
Hasan's group of forestry-related companies from 1991 to 1997.
Appointed chairman of MPI in 1991, Hasan resigned last March
following his appointment as minister of trade and industry. The
May government shake up split MPI into two groups, one remaining
loyal to Hasan and the other advocating reform.
Agus said his group would continue to recover the money, which
Hasan allegedly kept in local and foreign banks.
MPI is an umbrella group for nine forestry-related
organizations, including Apkindo, the Association of Indonesian
Concessionaires (APHI) and the Indonesian Saw Millers Association
(ISA).
The old MPI and its association members have been criticized
for alleged cronyism and abuse of power. Apkindo's monopoly was
abolished in February under the government's agreement with the
International Monetary Fund (IMF). (gis)