Censession holders fail to pay $99m
Censession holders fail to pay $99m
A. Junaidi, Jakarta
Three non-governmental organizations (NG0s) alleged on Tuesday
that many forestry concessionaires had failed to pay a total of
Rp 955 billion (US$99.47 million) in reforestation fees and
timber royalties (PSDH).
The Indonesian Forum for the Environment (Walhi), Indonesian
Corruption Watch (ICW) and Greenomics Indonesia said that only Rp
325 billion out of a total of Rp 1.28 trillion in reforestation
fees and timber royalties had been paid by concessionaires in
2003.
"Only 25 percent of the money has been paid. This shows that
the concessionaires are not fulfilling their obligations,"
Greenomics executive director Elfian Effendi said during in a
press conference.
Based on the latest data from the Ministry of Forestry, Elfian
said that seven out of the country's 365 concessionaires had
total arrears of Rp 174.46 billion in fees and royalties.
He said most of the concessionaires were able to settle their
arrears, but they were uncooperative and lacked a willingness to
pay what they owed.
"We support the Ministry of Forestry in issuing warning
letters to these concessionaires or revoking their licenses,"
Elfian said.
Law No. 20/1997 on non-tax state revenues stipulates that the
owners or shareholders of forestry firms that fail to pay their
debts to the state may be fined or imprisoned.
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
companies that fail to pay the fees and royalties that they owe.
ICW coordinator Teten Masduki suggested that indebted
companies be blacklisted and their names publicly announced
by the ministry.
"Based on our experience, some companies will only pay their
debts after their names have been made public," Teten said.
Some non-compliant forest concessionaires in 2003:
Name Area of Operation Amount of
debt (in billions)
1. PT Benua Indah West Kalimantan Rp 45.24
2. PT Sari Bumi Kusuma Central Kalimantan Rp 38.80
3. PT Timber Dana East Kalimantan Rp 29.95
4. PT Artika Optima Inti IV Papua Rp 28.29
5. PT Artika Optima Inti II Papua Rp 15.58
6. PT Artika Optima Inti I Papua Rp 12.47
7. PT Hasnur Jaya Utama Central Kalimantan Rp 4.13
Total: Rp 174.46
Source: ICW, Greenomics and Walhi