MPI vows to go it alone despite new forestry group

JAKARTA (JP): The Indonesian Forestry Society (MPI) vowed yesterday to remain in existence despite the establishment of a rival forestry society advocating reforms in the sector.

MPI spokesman A. Tjipto Wignjoprajitno said the organization would not join forces with the new group, the Indonesian Forestry Society for Reforms (MPI Reformasi), despite overtures from the latter.

"It is a free competition. Businesspeople will look and choose to join the better association. So, let's see."

Eight MPI members met with Minister of Forestry and Plantations Muslimin Nasution earlier yesterday to discuss the reforms in the forestry sector.

"The minister said that we should be more responsive to the people's aspirations and the current economic crisis. MPI should restructure its management system," Tjipto said.

He said eight of its nine members, mostly comprising associations of companies operating forestry-related businesses, still supported its existence.

Represented were the Association of Indonesian Wood Panel Producers (Apkindo), the Association of Indonesian Concessionaires (APHI), the Indonesian Saw Mill Association (ISA), the Indonesian Pulp and Paper Association (APKI), the Indonesian Flora and Fauna Traders Association (HAPFFI), the Association of Furniture and Handicraft Producers (Asmindo), the Association of Formaldehyde and Thermosetting Adhesive Industries (AIFTA) and the Association of Indonesian Wood Preservation Industries.

The other member, the Federation of Indonesian Forest Consultant Companies (Hikkindo), has yet to reconfirm its membership.

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

The organization, chaired by Sofyan Siambaton, 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 in forested areas. They also called for the abolition of several levies imposed by Hasan's MPI, which they charged had burdened timber companies.

Sofyan said Wednesday the organization planned to meet leaders of the MPI next week to discuss the possibility of merging the two societies.

But Tjipto countered yesterday that his association had implemented its own reform program since February by abolishing several levies considered burdensome to forestry companies and gradually revising its statutes and management system.

MPI and its members, which for more than 12 years were controlled by Hasan, have been criticized for their crony- capitalism and other unsavory practices.

Tjipto said Hasan had pledged that he would no longer interfere in MPI's business.

Tjipto, who is also Apkindo's executive director, said Apkindo had about US$113 million in deposits and stakes in Bank Umum Nasional, Bank Artha Graha and state Bank Negara Indonesia and Bank Dagang Negara.

He denied the deposits were registered in Bob's name and said they were all in the name of the association.

He said Apkindo owned stakes in Bank Muamalat Indonesia and Bank Bukopin. He said that the stakes, amounting to about Rp 20 billion, or 13 percent separately, would be granted to affiliated cooperatives.

"As far as I know, Apkindo's stakes in Bukopin will be granted to the cooperative of Apkindo employees as one of Apkindo's moves to reduce the social gap," he said. (gis)