MPI vows to go it alone despite new forestry group

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)