Rogue timber company facing sanctions

Rogue timber company facing sanctions

JAKARTA (JP): A House of Representatives commission has urged
the government to revoke logging concessions held by timber
company PT Erna Djuliawati following reports that the company is
guilty of logging in protected areas of forest in West and
Central Kalimantan.

Sjahrani Sjahrin, vice chairman of House Commission III for
agriculture, forestry and plantations, said commission members
were now waiting for a report from a Ministry of Forestry and
Plantations' team sent to investigate the allegations.

"If the company is proven guilty, its logging contracts should
be revoked," he said.

Last week, the head of the ministry's West Kalimantan office,
Hings A. Karim, alleged that Erna had logged areas of
conservation forest around Mount Bhiwa in West Kalimantan and
Beruang Hill in Central Kalimantan.

He also alleged that the company's plywood mill on the upper
Kapuas river was using illegal logs.

Hings said his office would investigate the allegations.

"We have strong indications that the company is involved in
the illegal timber trade because its plywood mill still has a
sufficient supply of logs, despite the fact that its concession
area in West Kalimantan is no longer productive.

"Besides, Erna's plywood mill is in an ideal location for
using illegal logs because it is situated upstream on the Kapuas
river," he pointed out.

Minister of Forestry and Plantations Muslimin Nasution said
earlier this month that he had sent a special team to investigate
the reports.

PT Erna Djuliawati holds two logging concessions, one for
102,000 hectares of forest in West Kalimantan and the other for a
199,831-hectare area in Central Kalimantan. Both concessions were
issued in 1979.

Erna is a subsidiary of the widely diversified Lyman Group,
controlled by businessman Osbert Lyman. The group is among the
country's 33 leading timber groups.

Muslimin said that both of the company's concessions were due
to expire in March 1999. The ministry has given its approval to
an extension of the company's concession in Central Kalimantan,
but has refused to extend the West Kalimantan operation, citing
poor management of the forest area as the reason.

PT Erna executives refused to comment when contacted on
Wednesday. (gis)