Ministry to punish faulty forestry firm

Ministry to punish faulty forestry firm

JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo
threatened to impose "harsh sanctions" yesterday on the Dayak
Besar Group, which is controlled by businessman Yusuf Hamka, for
violating forestry regulations.

Djamaludin also replaced the top executive of a state-owned
forestry company yesterday due to the firm's violations of
forestry regulations.

"We will soon take action against the (Dayak Besar) group
because two of its subsidiaries, PT Dayak Besar Vincent Timber
Co. and PT Gelora Dayak Besar, have repeatedly violated forestry
regulations and challenged the ministry's authority," Djamaludin
told reporters after swearing in forestry ministry officials and
several top executives from state-owned forestry firms.

The minister announced that he has already issued orders
forbidding the two firms from obtaining the necessary permits to
transport their logs and sawn timber from their concession areas.

Dayak Besar Vincent Timber and Gelora Dayak Besar both control
forest concessions totaling 170,000 hectares in Kutai, East
Kalimantan.

Executives of Dayak Besar Group declined to give any comment
when they were contacted yesterday.

Sources at the Ministry of Forestry said yesterday that the
two firms, which employ more than 2,000 workers, own a plywood
mill in Surabaya, East Java.

Minister Djamaludin also said that Dayak Besar closed its
headquarters and its plywood mill in East Java this month for
unknown reasons.

Djamaludin caused a sensation last year when he succeeded in
forcing two timber companies controlled by influential tycoon
Prajogo Pangestu to hand over 49 percent of their respective
equity shares to state-owned firms in return for the renewal of
their forest concessions.

The two Dayak Besar firms repeatedly violated various forestry
regulations last year, the minister said, which should have led
to the revocation of their concessions.

"But we decided that we should give them a chance to improve
their management," he explained. "We also decided that state
forestry firms should take over 20 percent of their shares so
that our staff could guide them to manage their forests
properly."

"Despite initially agreeing to our decision, they refused to
cooperate and even prevented four of my officials, who were
appointed to join in the their management team, from carrying out
the post-auditing of the two firms," Djamaludin said.

He added that the four officials, who were assigned as
commissioners and directors of the two Dayak Besar firms, were
summoned back to the ministry.

Replacement

In yesterday's ceremony, Minister Djamaludin installed Abbas
Ts as president of PT Inhutani IV to replace Hardjito
Haknyosubroto, who was held responsible for the forestry
violations in North Sumatra.

"Yes," the minister confirmed, "I have replaced the president
of PT Inhutani IV because the company was recently involved in a
deal which led to the destruction of a conserved forest in North
Sumatra."

"Hardjito was not personally guilty of the violation, but he,
as the company's president, must take responsibility," Djamaludin
said.

He also said that the ministry is still investigating the
extent of the damages caused by the company.

Hardjito was not available for comment yesterday.

Djamaludin confirmed that Inhutani IV's deal with PT Permata
Hijau Sawit to open palm oil plantations had led to the
destruction of a protected forest around the site of the
plantations.

The other executives installed yesterday included Mohammad
Toha Mochtar, who was appointed as president of Inhutani V,
Njasim Nibun Saputra as production director of Inhutani V and
Aman Somana as production director of Inhutani IV. Toga Silitonga
was installed as chief of the forestry ministry's research and
development agency. (hdj)