Probosutedjo, insolence and the destruction of forests

Probosutedjo, insolence and the destruction of forests

Meidyatama Suryodiningrat, The Jakarta Post, Jakarta

This nation is learning that with enough determination and a few
good men, high-level corruption can be prosecuted.

Nevertheless, we perhaps forgot that 'good' white-collar
criminals are just as determined in terms of regrouping, like a
snake shedding its skin every so often.

Unfortunately most of us are either too blind or ignorant to
realize what is happening, and like buffoons are hoodwinked by
their deviousness.

The damage done far exceeds the simple loss of state funds.

Convicted tycoon Probosutedjo may be languishing in a jail,
but his activities in the very field he was convicted are
continuing stronger than ever.

The half-brother of former President Soeharto was convicted of
pilfering Rp 100.9 billion of state reforestation funds in his
capacity as a principal of Menara Hutan Buana (MHB).

As part of the requirement for their operating license, MHB
was required to spend the funds on replanting and forest
management, in order to ensure a renewable supply of raw
materials for the company's planned pulp and paper mill.

But the company made false claims about the extent of the area
replanted in South Kalimantan under its license (HPHTI) for an
industrial timber plantation.

As it turns out, even the areas that were replanted failed to
meet the standards of quality demanded by their licensing
guidelines, and the bulk of the reforestation financing was
pilfered.

Despite Probosutedjo's conviction, MHB is now trying to
reassert itself in the Indonesian timber industry under its new
name Hutan Rindang Buana (HRB) -- after a divestment of ownership
by Probosutedjo -- and is seeking to build a pulp mill in South
Kalimantan.

According to NGO sources, United Fiber controls 90 percent of
HRB shares, and an Indonesian-born businessman owns 11.2 percent
of United Fiber shares.

This businessman is a former partner of Probosutedjo and a
nephew of timber baron Prayogo Pangestu, NGO sources say.

MHB's forestry licenses were initially suspended by the
Minister of Forestry in 2002, but the license was then handed
over to United Fiber that has taken over the plantation and
company infrastructure.

The decision of the minister was then taken to court and a
ruling last week found the suspension of the license to be
invalid.

Nevertheless, in a welcome act of defiance, current Minister
of Forestry MS Ka'ban has insisted he would not heed the court
ruling.

But in a stunning act of audacity, Probosutedjo has reportedly
offered to return over Rp 100 billion to the state if the
licenses were renewed.

The failure of MHB in fulfilling its reforestation
requirements carries enormous environmental costs, according to
sources familiar with the case.

They say large areas of the timber plantation have only patchy
forest cover and the resulting watershed degradation now
increases the likelihood of fire, mudslides, and flooding while
reducing water resources.

On the immediate economic side, the failure to replant leads
to a shortage of pulpwood timber, which will become more acute as
demand for forest products increases.

The shortage of legal timber entices unscrupulous companies to
log illegally in natural forests; forests which will also not be
replanted, leading to a vicious cycle of environmental and
economic degradation.

By some estimates, as much as 75 percent of the logging
carried out in Indonesia is illegal. That virtually guarantees
that forestry management practices and reforestation programs
will be non-existent in the areas that suppliers are forced to
resort to, environmentalists say.

The misappropriation of funds has social and political fallout
as well. In the absence of regenerated forests for continued
harvesting, these companies find themselves embroiled in land
disputes with local communities and agricultural companies.

To supply their needs, pulpwood companies often demand that
adjacent land belonging to estate companies and local communities
be turned over for exploitation.

The destruction of additional natural forest and animal
habitat could be avoided if the current licensing requirements
were met and the funds allocated for that purpose had not been
stolen, according to one source.

It is time to say enough to such practices -- to such levels
of impunity, the destruction of the environment and being conned
by clever business schemes. Let's not be fooled again.

By winning the appeal over the suspension of their license,
MHB may have won in terms of the law, but it is highly
questionable whether its intentions are honorable.