Inhutani II takes over forest concessions

JAKARTA (JP): The state-owned timber firm PT Inhutani II has been assigned to takeover forest concessions in Kalimantan and Sulawesi totaling 1.67 million hectares, the company's president said.

"We have been assigned by the Minister of Forestry to take over those concessions so that we could rehabilitate their damaged forests," A.A. Malik, Inhutani II's president, told Commission IV of the House of Representatives in a hearing yesterday.

According to Indonesian forestry rules, all forestry concessions are regarded as state properties, which can be cultivated by private sector investors for a limited period of time and under strict regulations.

Violations to the rules can result in several sanctions against the concessionaires, including a forced takeover by state enterprises.

The extent of the takeover is dependent on the level of damages incurred in the concession areas, the rules say.

There are more than 500 forest concessions in Indonesia at present.

Malik said yesterday that by last January, Inhutani II was already assigned to take over 12 concessions, located in East, South and West Kalimantan, South Sulawesi and Maluku.

Those located in East Kalimantan are PT Segara Timber, PT Segara Indochem, PT Ratah Timber, PT Rosmatika, PT Gunung Gajah Abadi and PT GRUTI.

The South Kalimantan concessions acquired by Inhutani II are PT Sumpol Timber, PT Pamukan Jaya, PT Yayang Indonesia and PT Aya Timber.

Similarly, Inhutani II gained PT Bumi Raya Utama and PT Kawedar Mukti Timber in West Kalimantan.

The state firm also took over PT Zedsko in South Sulawesi and PT Poleko and PT Yubarson in Maluku.

Malik also announced that in May, Inhutani II was assigned to cooperate with private concessionaires to takeover several concessions in Central Sulawesi.

Under the assignment, Inhutani II will cooperate with PT Luwak Lestari to takeover a concession previously held by PT Colano Tiga Dua, he said.

The state firm will also team up with PT Kaldold to manage a concession previously controlled by PT Gunung Manik. (hdj)