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

Jakarta (ANTARA) - The Ministry of Forestry (Kemenhut) is overseeing the execution of the Padang District Court’s decision against PT Berkah Rimba Nusantara (PT BRN) to pay Rp78.1 billion in ecological damages related to illegal logging cases in the Mentawai Islands Regency, West Sumatra.

The Director General of Law Enforcement (Gakkum) of the Ministry of Forestry, Dwi Januanto Nugroho, confirmed in a statement in Jakarta on Wednesday, that the ruling against PT BRN serves as an important message that forest destruction carries legal and ecological consequences that must be accounted for.

“Corporations that benefit from illegal activities must share responsibility for the resulting damage. Ecological compensation is a reminder that damaged forests have a value that must be held accountable,” said the Director General of Law Enforcement, Dwi Januanto.

In the corporate case, PT BRN was found legally and convincingly guilty of forestry crimes, including the unauthorised harvesting of forest products, tree felling within forest areas without business permits from the central government, and the transport and possession of timber products without valid documentation.

The panel of judges imposed a fine of Rp250 million on PT BRN. Additionally, PT BRN was sentenced to an additional penalty in the form of ecological damage compensation to the state amounting to Rp78,113,363,077.

Should the fine or additional penalty not be paid in accordance with the provisions of the ruling, an execution mechanism against the corporation’s assets or income will be applied as determined by the panel of judges.

In the case involving an individual, 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 Criminal Enforcement at the Ministry of Forestry, Rudianto Saragih, in the same statement, explained that the case is a development of forestry law enforcement operations in the Sipora Forest, Mentawai Islands, conducted by the Ministry of Forestry through the Directorate General of Forestry Law Enforcement as part of the Forest Area Order Task Force (Satgas PKH).

In this case, he clarified, investigators processed the accountability of two legal subjects: the company’s management and PT BRN as a corporation.

PT BRN collaborated in timber utilisation with PHAT Martinus in Betumonga Village, covering an area of approximately 736.27 hectares. However, the area granted access to the Forest Product Administration Information System (SIPUHH) for timber utilisation was limited to Plot 1, measuring 73.66 hectares, and Plot 2, measuring 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 law enforcement must become increasingly precise, combining field inspections, documentation, digital systems, and evidence against business entities,” said Rudianto.

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