Indonesian Political, Business & Finance News

Govt revokes licenses of 13 HPH holders

| Source: JP

Govt revokes licenses of 13 HPH holders

Rendi A. Witular, The Jakarta Post, Jakarta

The government has revoked the licenses of 13 natural forest
concession holders (locally called HPH concessionaires) for
failing to meet requirements for the sustainable operation of
their forest estates.

The 13 concessionaires control more than 1.5 million hectares
of natural forest, which is currently in a critical condition
because of overexploitation.

Director of forest exploitation at the Ministry of Forestry
Lumisu Mangiwa told The Jakarta Post on Tuesday that an audit by
the Independent Verification Institute (LPI) showed that 13 of
the 27 companies being audited failed to sustain their forest
resources.

Lumisu explained that the ownership of the forests would be
taken over by the Ministry of Forestry and would later be
transferred to the local community as a community forest, if they
are located near villages, while remote forest areas will be
auctioned off to private investors to be turned into plantations.

The concessionaires whose licenses have been revoked includes
PT Maraga Daya Wood, PT Artika Optima Inti I, PT Bhara Induk
Maluku and PT Bhara Induk Sumut.

PT Maraga Daya is owned by publicly listed timber giant PT
Barito Pacific, which controls a total area of around 68,000
hectares in Central Kalimantan.

However, in its report to the Jakarta Stock Exchange last
week, Barito said the revocation of its subsidiary's license
would not greatly impact the company's overall operation.

PT Artika Optima Inti I, a unit under the troubled timber
conglomerate Djajanti Group, controls 435,000 hectares of natural
forest in Papua.

Djajanti is currently under the control of the Indonesian Bank
Restructuring Agency, as it owes huge debts worth Rp 2.8 trillion
(US$329 million) and $140 million to the state.

The move to revoke the licenses of bad forest concessionaires
is part of an overall effort by the Ministry of Forestry to
restructure the country's natural forests, which have been
threatened by illegal logging and overexploitation.

By the end of the year, 296 concessionaires out of a total of
412 logging companies are expected to have been audited.

Eyebox

Banned HPH holders

Companies Location

1. Salaki Suma Sejahtera West Sumatra
2. Essa Indah Timber Riau
3. Bhara Induk Maluku Maluku
4. Aman Makmur Intiga Central Kalimantan
5. Artika Optima Inti Papua
6. Sri Buana Dumai Riau
7. Karya Inti Sakti Mandiri Central Kalimantan
8. KSU Bajenta Central Kalimantan
9. Bhara Induk North Sumatra
10. Maraga Daya Wood Central Kalimantan
11. Sri Bunian Trading South Sumatra
12. Mutiara Klja Permai East Kalimantan
13. Mohairson Pawan Kalja West Kalimantan

Source: Ministry of Forestry

View JSON | Print