Sat, 01 Dec 2001

Rini suspends senior staff

The Jakarta Post, Jakarta

Minister of Trade and Industry Rini Soewandi has suspended the director general of international trade Riyanto B. Yosokumoro from duty as punishment for breaching a ministerial decree.

"I have only suspended him (Riyanto) because the appointment and discharge of a director general can only be executed with a presidential decree, so I am waiting for that decision," Rini said on the sidelines of a meeting with non-governmental organizations on Friday.

Riyanto's position will be temporarily taken over by the Director General of Domestic Trade Teddy Setiadi until a replacement is appointed, she said.

Riyanto had issued an official letter on Nov. 7 authorizing 11 exporting companies to export logs, which was in direct violation of a joint ministerial decree banning the export of logs effected on Oct. 8.

The ministerial decree was issued jointly by the minister of industry and trade and the minister of forestry to protect Indonesia's forests from illegal logging activities. It gave exporters 23 days to carry out their exports before the decree took effect.

However, 11 companies failed to export their products within the stipulated time and asked the director general for exemption from the decree, claiming bad weather and technical difficulties had interrupted their ability to export on time.

The 11 companies are PT Prabu Alaska Unit I, PT Inanta Timber, PT Bhara Induk, PT Keang Nam Development Indonesia, PT Melapi Timber, PT Teluk Bintuni Mina Agro Karya, PT Kedaung Madu Tropical Wood, PT Kaltim Bhakti Sejahtera, PT Bumi Simanggaris Indah, PT Karangjoang Hijau Lestari and PT Papua Nabire Development.

The companies received an exemption for 72,147 cubic meters of log exports worth US$21.6 million.

Riyanto claimed earlier that he was forced to make a decision because, at the time, the minister was in Doha, Qatar, attending the World Trade Organization ministerial meeting.

Rini said that Riyanto had acted above his authority because a director general cannot issue dispensation of a ministerial decree.

"Something like this needs consultation and the approval of a minister," she said, adding that according to the latest coordination meeting with the coordinating minister for political and security affairs the logs would be detained at seaports until further notice.