Tue, 19 Sep 1995

'Concessionaires not paying contributions'

JAKARTA (JP): The Ministry of Forestry announced yesterday that unpaid mandatory forest contributions reached more than Rp 9.9 billion (US$4.39 million) as of September last year, with only 36 percent disbursed as of August.

The ministry's inspector general, Hariadi Darmawan, in a hearing with House Commission IV, which oversees forestry and agricultural affairs, said yesterday the figures were based on reports from the Government Audit Agency.

"There has been difficulty in collecting the unpaid contributions," he said.

Hariadi said the difficulties included lack of qualified manpower to conduct supervision and monitoring activities in the field.

"The activities currently done by the office mainly focus on law enforcement measures. We are working toward a comprehensive type of supervision, which will cover all aspects of a concessionaire, including its policy, planning and personnel management," he said.

Hariadi said the arrears of mandatory contributions consisted of Rp 2.76 billion in forest royalties and $3.19 million in reforestation funds.

Forest concessionaires and holders of logging permits are required to pay contributions to maintain forest sustainability.

Hariadi said that out of the unpaid forest royalties of Rp 2.76 billion recorded by the auditing agency, about Rp 1 billion (36.24 percent) has so far been compensated, Rp 369.45 million (13.37 percent) is still being processed, while the cases involving the remaining Rp 1.39 billion (50.39 percent) have been handed over to the State Receivership Agency.

Meanwhile, from the unpaid reforestation funds of $3.19 million detected by the auditing agency last September, $1.14 million (35.88 percent) was paid in August, $360,365 (11.3 percent) is still due, while the cases involving the remaining $1.68 million (52.82 percent) have been handed over to the State Receivership Agency.

Hariadi said that companies whose financial obligations have been handed over to the State Receivership Agency are those which have either gone bankrupt or can no longer be found at their addresses.

Most of them, he added, are also long-time debtors.

Hariadi said companies in Central Java that had not paid contributions include PT Flototto Indonesia, PT Wirasta Guna Mandiri and PT Rimba Cendana Indonesia Putra.

In East Java, companies failing to pay contributions include PT Bina Satya Makmur, PT Sutera, PT Sura Indah Wood and Rimba Lancar, while those in Aceh include PT Dina Maju, PT Singkil Timber and PT Asdal.

Hariadi also recorded violations of logging activities and timber distributions, with penalties reaching a total of Rp 3.95 billion.

The violators included PT Karya Gading Indah, PT Karya Alam Prima and PT Kandangan Kayu Indah in East Java; PT Andalas Merapi timber in West Sumatra; and PT Inhutani IV and PT Alas Helau in Aceh. (pwn)