Forestry firm charged with illegal logging

Forestry firm charged with illegal logging

JAKARTA (JP): The owner of PT KLI, one of the country's
largest forestry companies, is being investigated for his
company's alleged involvement in illegal logging, the forestry
ministry disclosed here on Thursday.

Suprapto, the secretary-general of the Ministry of Forestry
and Agriculture, said the wealthy businessmen was one of eight
people currently under investigation.

He did not unveil the name of the businessman, but said his
company, PT KLI, which is one the country's five largest forestry
companies, had allegedly sold logs to Central Jakarta from its
forest concession in Kalimantan without proper documents.

"The company, initials KLI, is believed to be operating under
three false licenses to fell the trees in its forest
concessions," said Suripto, who is also the chairman of the
illegal logging section at the Interdepartmental Committee on
Forestry.

Deddy Rochyadi, one of the chairs of the committee, said if
the suspicion proved true, the company could be fined in the
amount of 10 times the forestry royalties or forest resource
levies.

"If investigations reveal the fraud was committed more (than
three times), it's forestry license could be revoked," he said.

Illegal logging damaged some 1.6 million hectares of forest
between February and August this year, and caused a loss of Rp
1.2 billion (US$141,200) in annual taxes.

Suprapto said as many as 12 people had been reported to the
police for their alleged involvement in financing illegal logging
operations and selling illegal logs.

Suprapto said they allegedly sold the illegal logs from
Kalimantan, Palembang, Jambi and Aceh to other provinces or
neighboring countries, including Malaysia, Singapore and
Thailand. (10)