Indonesian Political, Business & Finance News

No compromises for errant forestry firms: Minister

| Source: JP

No compromises for errant forestry firms: Minister

JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo
blasted recalcitrant forestry companies yesterday, saying that no
concessions will be made for those who violate forestry rulings
such as document forgery, illegal felling, timber smuggling and
data manipulation.

"The number of violations of forestry rulings has reached a
serious level. Not only do such practices cause financial losses
to the state but they also threaten the environmental
sustainability of our forests," Djamaludin said after installing
a number of new officials.

He contended that there would be no compromises for violators.

"Forestry companies have been entrusted by the government to
manage the country's forests and prosper from those resources.
But they have continued to conduct unduly practices," he said.

He said that if fines were not effective in stopping illegal
practices the government would impose criminal sanctions and
bring cases to court, which is permitted by Government Regulation
No. 28, 1985.

Djamaludin yesterday installed I Gusti Made Tantra as expert
staff for forest technology; Ombo Satjapradja as expert staff for
socioeconomic and environmental impacts of forestry; Untung
Iskandar as chief of the foreign cooperation and investment
bureau; J. Widodo Sutoyo as chief of the law and organization
bureau; Mursidin as Director for Reforestation and Social
Forestry; and Agus Tabrani, Kamdiya Adisoesanto, Imam Mudjahid
and Tony Sumardjo as lecturers at the ministry's education and
training division.

Djamaludin told reporters that he has ordered his subordinates
to intensify the supervision of forest concessionaires to ensure
they abide by all the provisions stipulated in their forest
agreements with the government.

"We must not let the wrongdoings of a handful of businesses to
give the impression that Indonesia is incapable of managing its
forests in a sustainable manner," he said.

Djamaludin admitted, however, that monitoring the country's
forests was not an easy task for his office. He said that merely
adding the number of supervisory personnel could not immediately
solve the problem, "unless they are highly qualified and
dedicated".

He also admitted the shortage of sophisticated techniques for
surveillance activities and inadequate coordination between
related government offices were drawbacks.

"What we deal with are big companies and mafia-type networks,
where government officials are often directly or indirectly
involved," he said.

He also complained that the government's budgeting procedures
give little leeway and flexibility to his ministry in conducting
effective supervision and monitoring operations.

Responding to questions on the results of a 25-day post-audit
check on PT Nusantara Plywood, a subsidiary of the Djajanti
Group, which was recently alleged to have smuggled logs and
bought illegally-cut timber, Djamaludin said an inspection team
had discovered that several forest concessionaires belonging to
that group had, in previous years, under-invoiced their
documents.

The documents, he alleged, reported a smaller amount of timber
than was actually transported out of the concessions.

"I have the names of the forest concessionaires which had
filed under-invoiced documents," he said.

However, similar to the series of allegations he had made
against several forest-based business groups since the middle of
last month, his latest allegations were not supported with clear-
cut evidence.

He refused to go into detail. Nor did he explain the result of
investigations into other forest concessionaires and wood
companies which were also alleged to have smuggled logs to Java.

Government regulations stipulate that the Ministry of Forestry
may take legal action -- such as revoking the forest concessions
belonging to a wood-based industry -- if the industry is proven
to have conducted illegal timber trading or smuggling. (pwn)

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