Essa Indah warned over alleged logging abuses
JAKARTA (JP): Minister of Forestry and Plantations Muslimin Nasution threatened on Friday to revoke PT Essa Indah Timber's logging rights to its forest concession in Bengkalis, Riau, for allegedly violating contract terms.
Muslimin said he had received reports from legislators and locals that the concessionaire -- one of the country's largest -- had subcontracted its logging activities to other companies.
"I've ordered the Director General of Forest Utilization to check the report. If the company is proven guilty, I will not hesitate to revoke its logging contracts."
Leasing out a logging contract, he said, violated a ministerial decree stating that concessionaires are required to exploit their areas by themselves and prohibited from contracting or transferring the management of concessions, including the logging contracts, to others without the minister's permission.
Legislator Umbu Mehang Kunda, who chairs the House of Representatives Commission III for agriculture, forestry and plantations, transmigration and food affairs, had asked the minister on Wednesday to revoke the company's concession because it had "violated many rules", including subcontracting its logging operations.
The company was also reported to be involved in illegal timber trade, misuse of log transportation documents and had felled a greater number of trees than its annual cutting plan, Umbu said.
"If the company is proven guilty, the government has the right to ask for compensation for its loss caused by the violations."
He urged officials of the Ministry of Forestry and Plantations, especially those who work directly in the field, to conduct strict supervision to avoid massive exploitation.
Essa Indah Corporation, a subsidiary of Panca Eka Bina Plywood group, was granted a permit in 1990 to carry out logging activities on a 100,000-hectare area in Bengkalis, Riau.
According to the ministry's data, Panca Eka Bina Indah Plywood, owned by businessman Supendi, is ranked ninth among the biggest forest concession holders in the country with more than 835,000 hectares. (gis)