Jobs loses loom as sugar firm faces closure
Nana Rukmana, Cirebon
The Ministry of Forestry plans to reclaim 13,113 hectares of sugarcane plantations in forest reserves in Majalengka and Indramayu regencies in West Java, threatening to leave at least 21,844 families without a means of livelihood.
Djoentoro, general manager of sugar company PT Rajawali Nusantara Indonesia (PT RNI) in Jatitujuh district, Majalengka, said that his firm would definitely stop operating if the plantations it depends upon for sugarcane were closed.
"Some 1,091 hectares of the land is managed under the joint operation scheme (KSO) with state-owned forestry company Perhutani Unit III for West Java and Banten, while the remaining 12,022 hectares, which have commercial operation (HGU) status, are reserved for plantation use by the forestry ministry," he said.
Djoentoro, speaking to journalists in the West Java city of Cirebon on Monday, said the forestry minister had instructed Perhutani not to cooperate with PT RNI anymore so that the land could be replanted as forest.
The order was issued in a letter that PT RNI received from Majalengka's Perhutani office head Taufik YD Raharjo, which was dated May 31, 2004.
Djoentoro said the letter quoted Minister of Forestry M. Prakosa as ordering Perhutani to immediately replant the entire 1,091 hectares currently managed by PT RNI.
The minister also ordered the National Land Agency (BPN) not to extend PT RNI's HGU permit, which will expire on Dec. 31, 2004.
Djoentoro said that if the ministerial instruction were to be executed, the Jatitujuh sugar factory would definitely close down.
He said his company was seeking to negotiate with Perhutani in the hope that the latter would reclaim the land in stages until the company could find another site for its plantation.
"They (Perhutani) could repossess 700 hectares this year and the remaining 391 hectares next year. They agreed to our request during negotiations, but already they have reclaimed all but 60 hectares," he said.
Deputy West Java Governor Nu'man Abdul Hakim, who is also a member of Perhutani's supervisory board, expressed concern over the matter and said he would bring it up for discussion at a board meeting.
The West Java administration would immediately send a recommendation letter to the forestry minister and the National Land Agency to reconsider the reclamation plan, he said.
"We will immediately take the necessary steps to overcome the problem," Nu'man added.
The closure of the sugar company could cause permanent, seasonal and contractual workers, as well as drivers, food workers and contractors to lose their jobs, most of whom are the breadwinners of their families.