'Concessionaires not paying contributions'

'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)