Thu, 18 Jun 1998

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)