Cronyism not gone from 'forestry business'

JAKARTA (JP): The Indonesian Forum for the Environment (Walhi) warned on Wednesday that without greater transparency, the government's forestry policy will simply transfer old crony practices to new operators.

Walhi lauded the government's move to revoke the forestry concessions that had been given to the families and friends of former president Soeharto as part of the official campaign to eradicate corruption, collusion and nepotism.

However, it called for greater transparency in the granting of new concessions.

"There are indications that some of the forestry concessions that have been revoked would be transferred to the cronies of (President B.J.) Habibie," Joko Waluyo, Walhi campaigner for forestry and plantation affairs, told journalists.

Joko called the media briefing to announce the formation of Forest Concessionaire Watch (HPH Watch), which will monitor the activities of holders of forest concessions.

Lack of transparency in awarding the concessions in the past resulted in the concentration of licenses in the hands of 25 large corporations closely linked to the former president.

Eight concessions were revoked and 13 others would not be extended when they expire in March in the latest government drive announced this month to eliminate corruption from the forestry industry. The 21 concessions, covering some 2.53 million hectares, belonged to Soeharto's children and associates.

Walhi questioned the government's intentions with the revoked concessions, fearing it would lead to new forms of cronyism, some of which might be disguised in cooperatives.

Joko, who is coordinator of HPH Watch, urged the Ministry of Forestry and Plantations to assess the ecological condition of forests as well as the professional capability of companies when granting concessions.

The government should also announce the names of the new concession holders, he said.

HPH Watch also urged the Indonesian Bank Restructuring Agency to announce the names of debtors who used forest concessions as collateral for bank loans they had defaulted on.

After the latest revocations, there are 146 concessions covering 51.5 million hectares of forest, according to Minister of Forestry and Plantations Muslimin Nasution.

Joko warned that the revocations could lead to illegal logging to meet the demands of timber industries.

Without strict surveillance by the forestry ministry, the end result of the government's drive would be greater destruction of forests, he said.

Walhi has long been opposed to the policy of parceling out forested land to logging companies, saying that the forests were best managed by local people, who would use the resources and protect them at the same time.

These concession holders brought little benefit to the people of the regions, it said, noting that in 1997, they employed only 153,438 people.

Walhi's studies found that forests have 23 times more economic value if managed by local communities.

"The forestry concession system caused annual deforestation of 2.4 million hectares between 1982 and 1993," Joko said. (02)