Indonesian Political, Business & Finance News

Forestry Ministry to Oversee PT BRN's Rp78.1 Billion Ecological Compensation Ruling

| Source: ANTARA_ID Translated from Indonesian | Legal
Forestry Ministry to Oversee PT BRN's Rp78.1 Billion Ecological Compensation Ruling
Image: ANTARA_ID

The Ministry of Forestry is overseeing the execution of a Padang District Court ruling against PT Berkah Rimba Nusantara (PT BRN), which was ordered to pay Rp78.1 billion in ecological compensation for a case of illegal logging in the Mentawai Islands Regency, West Sumatra. The Director General of Law Enforcement at the Ministry of Forestry, Dwi Januanto Nugroho, stated that the ruling against PT BRN sends an important message that forest destruction carries legal and ecological consequences which must be accounted for. “Corporations that benefit from unlawful activities must also be held responsible for the damage caused. Ecological compensation is a reminder that damaged forests have a value that must be accounted for,” said Dwi Januanto. In the corporate case, PT BRN was found legally and convincingly guilty of committing forestry crimes, including harvesting forest products without rights, felling trees in forest areas without a business permit from the central government, and transporting and possessing timber forest products without valid documents. The panel of judges imposed a criminal fine of Rp250 million on PT BRN. Additionally, the company was sentenced to an additional penalty of paying ecological compensation to the state amounting to Rp78,113,363,077. If the fine or additional penalty is not paid in accordance with the ruling, an execution mechanism against the corporation’s assets or income will apply as stipulated by the judges. In the individual case, the panel of judges sentenced Ichsan Marsal to 2 years and 6 months in prison and a fine of Rp250 million. The Director of Forestry Crime Enforcement at the Ministry of Forestry, Rudianto Saragih, explained that the case developed from a forestry law enforcement operation in Sipora Forest, Mentawai Islands, conducted by the ministry through the Directorate General of Forestry Law Enforcement as part of the Forest Area Control Task Force. He clarified that investigators processed the accountability of two legal subjects: the company management and PT BRN as a corporation. PT BRN cooperated in timber utilisation on Martinus’ PHAT in Betumonga Village, covering an area of approximately 736.27 hectares. However, the area granted access to the Forest Product Administration Information System for timber utilisation was only in Block 1, covering 73.66 hectares, and Block 2, covering 73.35 hectares. Rudianto explained that the PT BRN case was proven through timber traceability from the felling point to the delivery destination. “The PT BRN case demonstrates that forestry crime enforcement must be increasingly precise, combining field inspections, documents, digital systems, and corporate accountability,” said Rudianto.

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