Mentawai gets no income from forestry sector

Syofiardi Bachyul Jb, The Jakarta Post, Padang

Mentawai Islands regental administration collected no revenue from the forestry sector last year, possibly due to resistance from timber companies.

In its 2004 annual report, the government reportedly gained zero income from the forestry sector, although its annual revenue target for the forestry sector had been Rp 2.5 billion (US$277,777).

The report, presented by officials from the Mentawai Revenue Office at a council hearing a few days ago, shocked the councillors. Though the regental government had granted in 2004 20 licenses for the right to undertake and profit from logging within a 30,000-hectare area, the administration had not collected any money from retribution fees imposed on timber companies following the issuance of the concessions.

Rio, an official from the Mentawai Islands Forestry Office, said that timber barons had refused to pay the retribution fees, claiming they were too high.

His said the forestry office was currently negotiating with timber companies over the retribution fees.

Retribution fees are imposed for a wide range of activities, including the use of heavy machinery, chain saw use and stockpiling logs.

Mentawai councillor Jan Winnen Sipayung said that the report had raised eyebrows among the administration.

The government must take action against the timber companies, he said. "If the timber companies refuse to pay the fees, their licenses must be revoked".

Meanwhile, environmental activists demanded that the regental council establish a committee to investigate the activities of timber companies.

Director of the Citra Mandiri Foundation Sandang Paruhum said the government should be more selective in granting licenses. "In many cases, timber companies abuse their privileges. They fell trees in protected forest next to the concession areas," said Sandang.

Campaign manager for the Indonesian Forum for the Environment's West Sumatra chapter Heri Prasetyo, said that the fact that the government had been unable to collect any revenue was unbelievable.

"The government issued the licenses to make money, but in fact, it failed to earn any revenue at all. It does not make sense," said Heri.