Government revokes vast forest concessions
JAKARTA (JP): Eight forest concessions totaling 1.17 million hectares owned jointly by former president Soeharto's children and their business associates were revoked because they were allegedly granted through corruption, nepotism and collusion, the government announced on Thursday.
Thirteen other forest concessions covering 1.36 million hectares will not be renewed when they expire next March, Minister of Forestry and Plantations Muslimin Nasution announced.
"These measures were based on the findings of joint audits and comprehensive due diligences by the Government Finance Comptroller and Ernst & Young auditors," Muslimin said.
He said the audits and investigations of forest concessions and plantation licenses were part of the national drive against corruption, collusion and nepotism headed by Coordinating Minister for Development Supervision and State Administrative Reforms Hartarto Sastrosoenarto.
"Our focus now is safeguarding state assets," he said, adding that further investigations into the concessions would be conducted for the purpose of possible criminal prosecution.
He said, however, that all the concessions and licenses obtained by the Soehartos and their business associates appeared to be technically legal because regulations during the Soeharto regime were designed to legalize such practices.
Nevertheless, he said the forest concessions had been obtained through corruption, collusion and nepotism as defined by Hartarto on the basis of President B.J. Habibie's directives.
Muslimin said the revoked forest concessions belonged to the Karya Delta Group, the Alas Helau Group, IFA and the Kalamur Group in the provinces of West, East and Central Kalimantan and Jambi.
These business groups, he added, were jointly owned by Soeharto's daughters Siti "Tutut" Hardijanti Rukmana and Siti Hutami Adiningsih and a number of their associates, including Muhammad "Bob" Hasan and Prajogo Pangestu.
"The forest concessions will be redesigned and put under the management of local universities, cooperatives and Islamic boarding schools," Muslimin said.
The 13 forest concessions which will not be extended after they expire next March are owned by Pangestu's Barito Pacific Group, Eka Tjipta Widjaya's Indah Kiat Group, the KLI Group controlled by Hunawan, the Alas Kusuma Group controlled by P.O.Suwandi, the Daya Sakti Group controlled by Widya Rahman, the Hutan Raya Group controlled by Anthony Salim and the Benua Indah Group controlled by Boediono.
Prajogo's Barito Pacific is the country's largest forest concession holder, controlling 3.5 million hectares of forest across Indonesia. Bob Hasan's Kalimanis Group is the fourth largest concession holder, with logging rights to 1.63 million hectares of forest in East Kalimantan, Aceh and Southeast Sulawesi.
Muslimin said the auditors also concluded that nine timber estate companies, seven of which were controlled or partly owned by Hasan, had either obtained their licenses through corruption and nepotism or abused reforestation funds from the government.
Four of the timber estates, PT Fendi Hutani Lestari and PT Tusam Hutani Lestari, controlled by Hasan, PT Adindo Hutani Lestari, owned by Soeharto's daughter Siti Hediyanti Prabowo, and PT ITCI Hutani Manunggal, jointly owned by Hasan and Soeharto's son Bambang Trihatmodjo, were found to have marked up the cost of their projects to receive additional reforestation funds from the government.
"These four companies will have to return Rp 50.71 billion in reforestation funds to the government," Muslimin said.
Muslimin said the Soehartos and their associates were also found to control 303,000 hectares of plantations in seven provinces through 33 companies.
He said his ministry would soon revoke the licenses of two oil palm plantations, PT Maharani Puri Citra Lestari, owned by Siti Prabowo, and PT Gunung Sinaji, controlled by Soeharto's youngest son Hutomo "Tommy" Mandala Putra.
Muslimin said his office was also in the process of canceling two forestland-swap deals between the government and PT Pertiwi Lestari, controlled by Anthony Salim, and PT Gunung Mas Alam Semesta, owned by Tutut's husband Indra Rukmana.
"The cancellation of the deal with PT Pertiwi Lestari alone would save the government Rp 499 billion in state assets," he said.
He added that two other forestland-swap deals with PT Kapuk Naga Indah in Tangerang and PT Mandara Permai in Angke Kapuk, West Java, were being reviewed for suspected corruption, collusion and nepotism. Both companies are owned by Anthony Salim. (gis)