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New MPI must be fully independent: Minister

| Source: JP

New MPI must be fully independent: Minister

JAKARTA (JP): Minister of Forestry and Plantations Muslimin
Nasution met with the Indonesian Forestry Society for Reform (MPI
Reformasi), a grouping established by businesspeople in the
forestry sector to replace the old MPI, an organization once
controlled by Soeharto's old crony Mohamad "Bob" Hasan.

The new 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 said burdened timber companies.

Muslimin said he hoped the new organization would be fully
independent and practice bottom-up decision making.

"The MPI Reformasi should be fully independent," Muslimin
said.

However, the organization named the ministry's inspector
general, Hariadi Dharmawan, and former director generals
Hendarsun S. Sanusiputra and Titus Sarijanto as advisors.
Forestry experts and the presidents of state timber companies PT
Inhutani I to V have been listed as members of the executive
board.

Sofyan said the organization planned to meet the existing MPI
next week to discuss a thorough reorganization and attempt to
establish a united MPI free from corruption, collusion and
nepotism.

"If they refuse to acquiesce and set up a reformed MPI we will
go our separate ways," added Sofyan, who was accompanied by MPI
secretary general Zain Masyhur.

The 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 and its subsidiaries, which for more than 12 years were
controlled by Hasan, have been criticized for their crony-
capitalism and rent-seeking practices.

Hasan trial

Earlier yesterday, 50 environmentalists staged a demonstration
at the ministry to demand that Hasan be brought to court for
allegedly destroying millions of hectares of forest over the past
15 years.

They urged Muslimin to set up an independent committee
involving ministry officials, the Attorney General's Office and
environmental organizations to conduct a comprehensive probe into
malpractice and corruption in the forestry sector.

They also demanded that Bob Hasan be tried for the misuse of
reforestation funds and the destruction of forest resources.

The protesters, members of the Indonesian Environmental
Development Organization (BLHI) and the Independent Committee for
Upholding Society's Rights (KIPMAS) chanted slogans and waved
banners calling on the government to use proceeds from the
country's forest resources to the benefit of the whole nation,
not just a small group of individuals.

"Excessive exploitation by several giant concessionaires has
led to an economic and ecological crises," BLHI chairman Agus
Miftach said.

He said the country's productive forests had decreased from
over 140 million hectares in the early 1970s to around 45 million
hectares today as a result of overexploitation by timber tycoons,
including Hasan, Prajogo Pangestu and Eka Tjipta Wijaya.

Private concessions -- which cover more than 61 million
hectares of forest -- are controlled by 50 leading groups,
including the Kalimanis Group owned by Hasan, Barito Pacific
Timber owned by Prajogo Pangestu, PT Alas Kesuma owned by
Handjaja and Nana Suparna, and the Mercu Buana Group owned by
Probosutedjo, Soeharto's half-brother.

Muslimin asked the protesters to give him a complete list and
evidence of malpractice and corruption in the forestry sector.
(gis)

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