Tue, 24 Oct 1995

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)