Thu, 26 May 1994

Six forest concessionaires to lose licenses

JAKARTA (JP): Six of the 19 forest concessionaires in Central Sulawesi will lose their licenses for failing to meet forestry requirements, Minister of Forestry Djamaloedin Soeryohadikoesoemo says.

The minister told reporters in Palu on Tuesday after concluding his three-day working visit that the six concessionaires failed to develop infrastructure facilities in the surrounding villages as well as carry out selective cutting programs and take aerial photographs of their concession areas.

Furthermore, none of them established wood processing plants to support their operations, he said.

Djamaloedin did not name the six concessionaires that will lose their licenses but identified them as PT IP, PT SK, PT KTD, PT LIT, PT G and PT KS.

He said his office has actually sent warning letters to them, demanding that they meet all necessary requirements, but so far has not gotten any response.

Djamaloedin also expressed concern that of the 19 logging concessionaires operating in the province, only one has set up a wood processing plant.

"A forest concessionaire is obliged to establish a wood processing plant to create jobs for local residents," he said.

He warned that land in Central Sulawesi is liable to erode if it is not covered by forests because granite lies underneath it.

Indonesia, which is under attack from international non- governmental organizations for its failure to sustain its forests in Kalimantan, Sulawesi and Irian Jaya, has introduced several programs, including selective cutting, to avoid deforestation.

Djamaloedin said he has not yet decided whether his ministry will hand over the six concession areas to other companies.

"Ecologically, the soil condition in Central Sulawesi is very sensitive. We need to do extensive research before making a decision," he added. (09)