Sat, 09 Jan 1999

Muslimin warns Tanri over timber firm chief

JAKARTA (JP): Miffed forestry minister Muslimin Nasution has warned State Minister of the Empowerment of State Enterprises Tanri Abeng over his decision to install his personal pick as president of one of the five state timber firms.

Muslimin said on Thursday he would revoke all logging licenses granted to state timber firms if Tanri held firm to his move to promote Soewarni to head PT Inhutani I.

He claimed the decision was made without consultation with his office, which oversees state forestry firms' field operations. Soewarni is currently the firm's finance director.

"I am so disappointed about Pak Tanri's move to install an Inhutani I president without consulting me over the matter. He should have consulted with us because we are the ones who oversees the forests."

He said Tanri was originally scheduled to install Soewarni as Inhutani I's president on Tuesday. The ceremony has been delayed due to his objections, he added.

Muslimin contended that Soewarni holds a financial degree and had no educational background in forestry.

"Managing the forests is very different from managing a profit-oriented company. Forests have to be managed in an environmentally sustainable manner," said Muslimin, whose ministerial portfolio also includes plantations.

"Besides, according to the new forestry law currently being prepared, all state timber companies will be restructured. So, Tanri and I will meet and discuss the matter to reach a settlement."

Tanri said separately on Thursday that he would not back down. He said the postponement of the installation ceremony was due to a scheduling conflict.

"I have no plan to revoke the decision. The delay was only because I have other duties on that day, not because of Pak Muslimin's objection."

He said Soewarni's name had long been considered one of the best candidates by his office to fill the position left vacant when A. Fattah DS was installed president of another state forestry firm, Perum Perhutani, in December.

Inhutani I, established in 1972, manages 2.37 million hectares of forests in East Kalimantan, Sulawesi and Maluku.

The company produces about one million cubic meter of logs annually.

Tanri's deputy Sofyan A. Djalil said that the two ministers were trying to settle the dispute.

"Our office is only doing its job which, as stated in the government's regulations No. 58 and No.12/1998, is to oversee the country's state companies," he said.

"If the two ministers cannot settle the problem, it will be brought to the coordinating minister for economy and finance. But I'm sure they can reach a satisfying solution."

The government established Tanri's position to handle the supervision of state companies, particularly in expediting their privatization and improving efficiency. Related technical ministries, which previously oversaw the firms, are designated to only provide technical supervision.

Several companies with a strong public service mission still have working relations with the technical ministers. (gis)