Plantation firms protest lax local govt security

Plantation firms protest lax local govt security

JAKARTA (JP): Members of the Association of Plantation
Companies in West Java (GPP) have refused to pay land and
property tax and local levies as a protest to local.
administration's failure to curb theft from plantation areas.

Association chairwoman Sjarifah Joesoef said on Monday that
the members would not pay tax now as well as for last year.

She said calls from the plantation firms in West Java for the
authorities to provide security reinforcement went unheeded.

"We urge the government to enforce the law and to be more
strict in handling theft cases, otherwise we will continue to not
pay taxes.

"For a long time, plantation companies are always milked by
local administration to pay various taxes and levies. And what do
we get in return? They do not care at all," she said in a meeting
with Director General of Plantations Agus Pakpahan.

Sjarifah said plantation companies in West Java were required
to pay 132 different fees to the local administration.

"The number does not include various unofficial levies, such
as a contribution for commemorating the Indonesian independence
day, city's anniversary, police anniversary, and others," she
said.

Sjarifah said the decision to suspend payment of taxes and
levies was started by the association's Sukabumi chapter and
might be followed by other plantation owners in Indonesia as they
suffer the same problems.

"It does not mean we are trying to run away from obligations.
But we are postponing the payment until we see serious action
from the government in handling the theft cases. If this move
costs us a fine or penalty, we consider it a risk we have to take
to fight."

Syarifah said groups of people have stolen from plantation
companies in West Java taking hundreds of thousands of metric
tons of latex, cocoa beans, coconuts, tea and other items. They
have also destroyed plantation facilities such as vehicles,
processing plants and even employees' houses.

"They have even occupied the plantation areas saying the land
belonged to their ancestors who received no land compensation
from plantation founders," she said.

The director general said rampant theft from plantation areas
caused an estimated material loss of Rp 2.6 trillion last year.

He added that the loss was calculated by taking into account
the volume of commodities stolen. The figure excluded any loss
which resulted from damage or fire due to arson.

The country is facing the worst economic crisis in history.
The number of poor has soared, and cases of rampant theft has
also increased greatly in certain pockets of the country.

"The government will solve these problems and will continue to
improve the security of plantation firms," he said.

But Sjarifah said security reinforcement provided by the
government was discriminative because only big plantations were
protected.

"The Minister of Defense and Security/Commander of the
Indonesian Armed Forces Gen. Wiranto had instructed the Armed
Forces and Police to secure areas owned by big plantation firms,
foreign companies and state plantation firms.

"No instructions were given to medium and small scale
plantation companies," she said.

Sjarifah said aside from thefts, most plantation companies in
West Java were also suffering from various levies, an increase in
land and property tax and wages.

She said the number of plantation firms in West Java have
continued to decline to 178 firms currently operating in 376,503
hectares of land. This is down from 287 firms covering 420,241
hectares of plantation in 1987, and is due to many firms not
surviving pressure.

"For example, the land and property tax imposed on us was
raised around 100 percent. We have to pay our workers according
to regional minimum wages, although the working hours of
plantation laborers are less than industrial workers," he said.
(gis)