Government limits buyers of auctioned timber

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)