No new forest concessions to be awarded: Minister
No new forest concessions to be awarded: Minister
JAKARTA (JP): Minister of Forestry and Plantations Muslimin
Nasution said yesterday that the government would grant no new
forest concessions in order to prevent further deterioration of
the country's forests.
The minister said that logging contracts would be limited to
areas whose concessions had been revoked by the government.
"The open bidding system for such forest areas is being
prepared," Muslimin told journalists.
He said that adopting an open bidding system to appoint forest
concessionaires would help to ensure transparency in the
management of the country's forest resources.
The auction of forest concessions is stipulated in the
Supplementary Memorandum on Economics and Financial Policies, a
reform package agreed by the government with the International
Monetary Fund (IMF) in exchange for a US$43 billion bailout
package.
Under the memorandum, Indonesia is supposed to introduce the
auction system by the end of this month.
"The bidding system will be designed in a such way as to
prevent the concentration of forest concession ownership in only
a handful of big companies," Muslimin said.
The government first began to award forest concessions to
private companies through the 1971 Forestry Law, which granted
concessionaires the sole right to exploit and cultivate forests
in their concession area.
Private concessions -- which cover more than 61 million
hectares of forest -- are controlled by 50 leading groups,
including the Kalimanis Group owned by Mohammad "Bob" Hasan,
Barito Pacific Timber owned by Prajogo Pangestu, Sujono
Varinata's Djajanti Group, PT Alas Kesuma owned by Handjaja and
Nana Suparna and the Mercu Buana Group owned by Probosutedjo,
Soeharto's half-brother.
Informed sources say most of the forest concessions are also
partly owned by Soeharto's children.
In a related development, about 300 environmentalists staged a
demonstration at the ministry Thursday. They demanded Muslimin
replace the existing forestry regulations, which they claimed
only benefited a handful of companies, mostly owned by the former
leader's family and friends.
The protesters, wearing green headbands, chanted slogans and
carried banners calling on the government to use the proceeds of
the country's forest resources for the interests of the whole of
society, not just for a small clique.
Meanwhile, a group of forestry businesspeople announced
yesterday the establishment of a new forestry organization called
the Indonesian Forestry Society for Reform (MPI Reformasi) to
replace the existing MPI, an organization once controlled by
Soeharto's long-time crony Bob Hasan.
The new organization pledged to help the Ministry of Forestry
manage the country's forests in an environmentally sustainable
manner which would benefit locals, and to abolish several levies
imposed by Bob Hasan's MPI which they said burdened timber
companies.
The new organization, headed by Sofyan Siambaton as the
general chairman, said that it had named the minister of forestry
and plantations as its patron, and named the ministry's inspector
general, Hariadi Dharmawan, and former directors general
Hendarsun S. Sanusiputra and Titus Sarijanto as its advisors.
Forestry experts and the presidents of state timber companies
PT Inhutani I to V are named on the lists of members.
Other key executives of the MPI Reformasi include chairmen
Akie Setiawan, Soetono, Moh. Toha and Aris Adhianto and Zain
Masyhur as the secretary-general.
MPI is a holding (umbrella) organization of all forest-
related organizations, including the Association of Indonesian
Wood Panel Producers (Apkindo), the Association of Indonesian
Concessionaires (APHI) and the Indonesian Saw Mill Association
(ISA).
MPI under Bob Hasan and its subsidiaries have been criticized
for their crony-capitalism and rent-seeking practices.
The head of the new organization said that it was scheduled to
meet Muslimin next Wednesday. (gis)