MPI Reformasi calls for forest concessions to be redistributed

JAKARTA (JP): The Indonesian Forestry Society for Reform (MPI Reformasi) called on the government on Wednesday to transfer forest logging rights which have expired to cooperatives.

Organization chairman Sofyan Siambaton said 105 forest concessions covering five million hectares of forest would expire over the next three years.

The breakdown is 20 concessions this year, 35 concessions next year and 50 concessions in 2001.

"Cooperatives could turn the forests into small timber estates with each of them controlling an area of between 1,000 and 5,000 hectares," Sofyan said after the organization's national congress.

MPI Reformasi was recently established by businesspeople in the forestry sector to rival MPI, an organization once controlled by timber baron Mohamad "Bob" Hasan, a crony of former president Soeharto.

Hasan's MPI is a holding (umbrella) organization for all forestry-related organizations, including the Association of Indonesian Wood Panel Producers (Apkindo), the Association of Indonesian Concessionaires (APHI) and the Indonesian Saw Millers Association (ISA).

MPI Reformasi has pledged to help the Ministry of Forestry and Plantations manage the country's forests in an environmentally sustainable manner and in a way which would benefit local people living in forested areas.

The new organization also called for the abolition of several levies imposed by Hasan's MPI, which it charged burdened timber companies.

Sofyan said cooperatives operating around the concession areas and the employee cooperatives of former concessionaires should be given first offer to control the forest after the forest concessions expired.

He said the government had thus far awarded forest concessions to 600 concessionaires, 436 of whom are still active. All the concessions expire by 2007.

A forest concession is effective for 20 years.

Sofyan was confident cooperatives would be able to operate their forests in an environmentally sound manner.

"Our people are an agricultural society. We are experienced in managing forests," Sofyan said.

Minister of Forestry and Plantations Muslim Nasution said last month at a hearing with the House of Representatives that the government was considering limiting corporate and personal ownership of the country's forest concessions to prevent a concentration of forest assets in the hands of a small number of companies.

According to forestry ministry data, the country's biggest concessionaire is Hunawan Wijajanto of the Kaju Lapis Indonesia Group who holds logging rights to 3.49 million hectares of forest across the country.

In second place is Burhan Uray who controls 2.95 million hectares.

Prajogo Pangestu is in third place with concessions covering 2.72 million hectares, followed by Bob Hasan with concessions covering 1.63 million hectares. (jsk)