Indonesian Political, Business & Finance News

Govt suffers loss of Rp 224b from timber smuggling, theft

| Source: JP

Govt suffers loss of Rp 224b from timber smuggling, theft

JAKARTA (JP): Smuggling, theft and looting of timber during
1988 caused the government to suffer an estimated Rp 224 billion
(US$26.35 million) in lost tax and royalty revenues, a senior
forestry official announced here on Wednesday.

Director General of Forest Protection and Nature Conservation
A. Manan Siregar said the biggest loss came from the rampant
smuggling of logs from the Indonesian forests in Kalimantan to
neighboring Malaysia.

"Our investigations show that more than 100,000 cubic meters
of timber were smuggled out of Kalimantan to the Malaysian
provinces in the northern part of the island during the July-
October period of 1998. It caused a loss of Rp 134 billion to the
country," he said in a media briefing.

"The ministry has asked the Ministry of Foreign Affairs to
settle the case through bilateral talks with Malaysian
authorities."

He said the loss the government suffered during the four-month
period was due to the nonpayment of export taxes on the logs.

Manan said that looting in plantation areas operated by five
state plantation firms and 42 private plantation firms has also
inflicted Rp 67 billion in damages on the government.

Huge amounts of teakwood were looted from state forestry
company Perum Perhutani's areas in Java in 1998, causing an
estimated loss of over Rp 1 billion to the government.

He said the loss was calculated by taking into account the
volume of the logs and plantation products which had been looted.
The figure excluded any loss resulting from damage to the forests
and plantation areas or the burning of processing facilities.

Looting also hit forest concession areas in Central
Kalimantan, which resulted in a loss of Rp 13 billion to the
government from the unpaid reforestation fees and forest
royalties.

Manan said the mass timber theft might be organized.

"Law enforcement to halt the timber theft, looting and
smuggling is difficult because it is apparently backed by some
powerful figures. Besides they are now grouping in large numbers
to steal the timber. Security personnel are usually outnumbered
by looters," he said.

He said he believed initiators were responsible for convincing
people from nearby villages to loot forests and plantation areas.

"Whoever is behind the looting has successfully provoked
people from nearby villages to attack the forests," he said.

Manan also said that his office had recently confiscated
405,000 cubic meters of illegally transported processed wood and
438,000 cubic meters of illegally felled logs.

During 1998, he said, 428,000 cubic meters of wood was
auctioned, bringing in Rp 25.6 billion to the state coffers.
(gis)

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