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)