Cronyism not gone from 'forestry business'

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that have been revoked would be transferred to the cronies of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)