Kaban plans to generate huge profits from forestry

Rendi A. Witular, The Jakarta Post, Jakarta

Newly appointed Minister of Forestry Malam Sambat Kaban plans to turn his institution into a cash cow, raising environmentalists' fears there will be further damage to the nation's already depleted natural forests.

Kaban, the secretary general of the Crescent Star Party (PBB), said one of the focuses of the ministry would be to contribute as much income as possible to the state budget by revitalizing the ailing forestry industry.

"Now it is time to make the ministry a source of money, and contribute to the national economy. Remember that Mohamad 'Bob' Hasan has once contributed some US$9 billion into the state budget from the forestry industry," Kaban said.

"The question is, why can't we do the same thing as Bob Hasan? We will revive back the industry and earn more (for the country) than what he did," Kaban, who has no background in forestry management, said.

Bob Hasan, who previously served a six-year jail term for corruption, was a timber tycoon and a golfing buddy of former president Soeharto. Under the Soeharto regime, he received special facilities from the government to exploit the country's natural forests in order to reap in foreign exchange revenue for the country.

From 1970s until the mid-1990s entrepreneurs started forestry businesses, which were given quotas to log selected areas of Indonesian forests.

The huge discrepancy between the demand for timber and the official supply meant the scheme was abused with many companies having production capacity three times greater than their allocated quotas.

According to data from the ministry published last year, about 43 million hectares of a total of 120.3 million hectares of forests have become unproductive because of illegal forest exploitation, with an annual forest degradation rate up to over 2 million hectares.

Kaban did not provide clear details about his plan, but said that aside from rehabilitating the forests, the ministry would also encourage the industry to use modern production machinery to improve efficiency in the cutting of timber.

"The government will support investment in this industry by providing incentives and erasing the high-cost economy resulting from extortion and corruption. We also expect the industry to modernize its machinery to boost efficiency," said Kaban.

Regarding the government's plan to issue regulations in lieu of laws to deal with illegal logging, Kaban said the ministry would review the plan and seek other means to combat illegal logging.

"We will review the regulation. I think there are other better ways to deal with the issue, such as by improving coordination between government institutions, empowering law enforcers and building up a new forest management system," he said.

Kaban said he would not resign from his party to avoid conflict of interests and abuse of state facilities, because there was no direct relationship between his role as a minister and as a party executive.

Meanwhile, Longgena Ginting, chairman of the Indonesian Forum for the Environment (Walhi), said the appointment of a politician as a minister of forestry signaled Susilo's lack of seriousness in combating the illegal exploitation of the country's natural forests.

"The appointment of Kaban is a mere "horse trading". Susilo still considers the ministry as a "gold mine", a just reward for a stout ally. We are afraid that the ministry will become another cash cow -- for politicians," said Longgena.

The PBB is a close supporter of Susilo, and is among the parties grouped in the People's Coalition that will support the President in the House of Representatives.