Soeharto-linked timber firms told to abide by forestry laws

Soeharto-linked timber firms told to abide by forestry laws

JAKARTA (JP): Newly appointed Minister of Forestry and
Plantations Muslimin Nasution has warned timber companies with
links to former president Soeharto to abide by the existing
forestry regulations or face losing their logging contracts.

Muslimin said yesterday that any concessionaires -- including
several giant groups which hold concessions thanks to connections
to Soeharto's family -- which violated regulations should be
punished.

"No special treatment will be given to any parties."

Muslimin said the ministry was compiling data on names and
operations of all forest-concession holders in the country.

"The names of all forests concessionaires will be collected
and will be announced transparently to the public as soon as
possible," he said.

He said strict punishment would be meted out to companies
found to have violated the sustainable forest management
regulations, including those with ties to Soeharto.

"If those companies want to continue business in the forests,
they should follow fair and sound practices."

Muslimin said his ministry was also collecting information on
the names of timber and plantation companies and their owners who
primarily relied on the burning method in clearing land.

"The current data only shows names of companies but not their
owners' names. The data should be reviewed by adding the name of
the people behind those companies," he said.

The government first began to award forest concessions to
private companies through the 1971 Forestry Law, which granted
concessionaires the sole right to exploit and cultivate forests
in their concession area.

Private concessions -- which cover over 61 million hectares of
forest areas -- are mostly in the hands of 50 leading groups,
including Kalimanis Group owned by Mohammad "Bob" Hasan, Barito
Pacific Timber owned by Prajogo Pangestu, Djajanti Group of
Sujono Varinata, PT Alas Kesuma owned by Handjaja and Nana
Suparna and Mercu Buana Group owned by Probosutedjo, Soeharto's
half-brother.

Other leading groups are PT Benua Indah, Sumalindo Lestari
Jaya (a subsidiary of the giant Astra Group), Bumi Raya Utama
Group, Surya Dumai Group and Tanjung Raya Group.

Sources said most of the forest concessions owned by the 50
leading groups were partly owned by Soeharto's family.

Informed sources at the ministry said Soeharto's children and
their cronies, such as timber tycoons Bob Hasan and Prajogo
Pangestu, enjoyed exclusive rights to a number of business
activities in the forestry sector.

A report last year said several giant companies, including
Hasan's International Timber Corporation Indonesia and Prajogo's
Sumalindo, were allegedly to blame for practicing burning of
forests to clear land, which resulted in the forest fire disaster
last year. (gis)