Government limits buyers of auctioned timber

JAKARTA (JP): The government yesterday issued a decree limiting the buyers of auctioned timber to state enterprises and members of forestry and sawmill associations.

In a joint decree signed by the minister of forestry, the minister of finance, the attorney general and the national police chief, the government said the decree was meant to prevent auctioned timber from falling into the hands of "individuals" strongly suspected of being involved in forest crimes.

The decree stipulates that those who may join the timber auctions are state-owned Perum Perhutani, PT Inhutani I through to V, and members of the Indonesian Forestry Society and the Indonesian Sawmill Association.

Timber which is put up for auction is either confiscated or unclaimed wood collected by the Joint Team for Forest Security.

Forestry Minister Djamaludin Suryohadikusumo said the government currently suspected that those who participated in timber auctions and managed to win the bids were often those who deliberately stole or illegally felled the timber to put it up for auction.

This way, the auctions merely became a means to legalize the timber and enabled buyers to get the timber at low prices.

Djamaludin acknowledged that it was difficult for the government to prove that some forest companies were involved in illegal felling and timber-stealing.

"The least we can expect through this decree... is that auctioned timber does not return to the people we suspect are the masterminds behind the crimes... which result in these auctions," he said.

Yesterday's joint ministerial decree was signed by Djamaludin, Attorney General Singgih, National Police Chief Lt. Gen. Dibyo Widodo and the Finance Ministry's Head of the State Receivership Agency, Adolf Warouw, on behalf of Finance Minister Mar'ie Muhammad.

The decree applies for confiscated and unclaimed non-mixed timber. This category includes expensive types of wood such as teakwood, meranti and ebony, and does not include cheap types of timber which are used for the development of low-cost housing and apartments.

The decree states that if the auctioned timber does not reach its predesignated floor price after three consecutive auctions, the winner will be the highest bidder.

If no one is interested in the auctioned timber, the timber is passed on by the Minister of Forestry to social foundations or one of the ministry's state firms.

The winner of a bid is responsible for paying the timber's mandatory reforestation funds and forest royalties as well as various transportation and administrative fees.

Djamaludin said yesterday the decree was not expected to reveal or capture the masterminds behind the timber thefts as this was the task of the Joint Team for Forest Security.

The team is comprised of officials from the local police, the attorney general's office and the forestry ministry.

Djamaludin declined to mention the amount of state losses caused by timber theft.

The Forestry Ministry said last month that the team had so far managed to seize 82,595 cubic meters of logs during its first year of operation in 1995/1996.

Until November, 1996, the team had confiscated another 175,928 cubic meters, bringing the total volume of confiscated timber to 258,523 cubic meters. (pwn)