Concessionaires told to cover losses from forest fires
Concessionaires told to cover losses from forest fires
JAKARTA (JP): The government will demand that concessionaires
of industrial timber estates regreen forests damaged by fires and
pay compensation for the losses caused, Minister of Forestry
Djamaludin, Suryohadikusumo says.
Prior to a cabinet meeting at the Bina Graha presidential
office here Saturday, Djamaludin told reporters that total
financial losses caused by the recent fires in timber estates are
estimated at Rp 34 billion (US$15.4 million).
"We will demand compensation from the concessionaires for
these losses because the government has subsidized the costs for
their reforestation efforts," he said.
The minister also said fires have razed about 17,000 hectares
of industrial timber estates. Of these, 11,000 hectares are
located in South Sumatra and the remainder in Lampung, Kalimantan
and East Nusa Tenggara.
He said the South Sumatran forests damaged by fires are
managed by three companies, including PT Musi Hutan Persada,
which is controlled by timber tycoon Prajogo Pangestu.
The minister did not explain the exact relationships between
Musi Hutan Persada and the publicly listed PT Barito Pacific
Timber, which is also controlled by Prajogo.
Neither Prajogo nor other Barito Pacific executives were
available for comment when contacted by The Jakarta Post on
Saturday.
Contrary to press reports that fires had also affected Barito
Pacific's forests, directors of the company said last week none
of the company's forest concessions were affected by the recent
fires.
The Ministry of Forestry last week stated that the recent
forest fires had destroyed 5.11 million hectares of forests,
brush and grasslands throughout the country. The ministry also
said only 3.42 percent of the smog and fire originated from
industrial timber estates.
In contrast, according to the Ministry, 85.2 percent of the
thick smoke and forest fires came from areas populated by farmers
who practice slash and burn cultivations. (hdj)