Kaban plans to generate huge profits from forestry

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.