Pulp firms accused of withholding reforestation funds
Pulp firms accused of withholding reforestation funds
Haidir Anwar Tanjung, The Jakarta Post, Pekanbaru, Riau
A timber association executive accused pulp and paper firms PT
Indah Kiat Pulp & Paper and PT Riau Andalan Pulp & Paper of
withholding billions of rupiah in reforestation funds by
manipulating production reports to Riau's forestry authorities.
Chairman of the expert board at the Indonesian Timber Business
Association (APKOI), Viator BB, said Riau received Rp 48 billion
(about US$5.39 million) in reforestation funds from both firms in
2001.
That amount, however, should had been nearly 10 times higher
or at least Rp 460 billion that year, he said on Wednesday.
Viator based his estimates on Indah Kiat and Riau Andalan's
production capacities. He said their production rates should have
required them to pay more in reforestation funds.
Spokespersons for Indah Kiat and Riau Andalan dismissed the
charges as rubbish.
But environmental activist Bakhti Sianturi said both firms
might withhold between Rp 600 billion and Rp 800 billion in
reforestation funds every year.
He charged Indah Kiat and Riau Andalan with manipulating their
reports on the type, size and volume of their forestry products.
Falsifying a report to make it appear that a timber company
was producing raw scrap material instead of logs could save the
company over 90 percent on its mandatory monthly reforestation
payments, Bakhti said.
A company is required to pay between $10 and $12 in
reforestation funds per cubic meter if they produce logs. But
they must pay only Rp 2,000 per cubic meter if they produce scrap
raw material, Bakhti said.
"This is where the biggest manipulation occurs," said Bakhti,
a director at non-governmental organization Youth Care. "If we
look at a plant's production capacity, the manipulated funds
could amount to between Rp 3 billion and Rp 4 billion a month."
He claimed to have "authentic data" regarding manipulation by
Indah Kiat and Riau Andalan.
Bakhti and APKOI executive Viator said they planned to report
their findings to the local prosecutor's office.
Indah Kiat spokesman Afrizon called the charges groundless and
absurd.
He said the company obtained its raw timber after first
securing clearance from the forestry ministry. According to him,
this makes it impossible to manipulate the amount of
reforestation funds the company is required to pay.
"The reforestation funds are handled by the forestry office,"
Afrizon said. "It's impossible for us to obtain timber without
the forestry office knowing about it."
Riau Andalan spokesperson Fachrumnas MA Jabbar said his
company always referred to the forestry office in obtaining its
raw materials.
"We have evidence of our payment of reforestation funds,"
Fachrumnas said.