State company takes over 22 forest concessions

State company takes over 22 forest concessions

JAKARTA (JP): The government has assigned state-owned PT Inhutani III to take over 22 forest concessions covering 1.6 million hectares from private companies in Central Kalimantan whose licenses have been revoked.

"Almost 93 percent of the acquired forests were damaged or grown only by thatch grass and only 7.2 percent were still virgin, the chief executive of Inhutani III, Kadar Slamet, told Commission IV of the House of Representatives in a hearing yesterday.

Members of the commission, which deals with agriculture and transmigration, expressed concern on the matter, saying that all forest concessions should be conceded to state companies because private concessionaires have damaged their forest areas.

Kadar explained that the revoked concessionaires were PT Telawang, PT Karang Sari Mulya, PT Pusaka Jaya Agung, PT Hutan Mas, PT Batarung, PT Sehati Rungan, PT Katingan Timber Co., PT Kalimantan Hayu, PT Kayon Timber I, PT Gempita Kalteng, PT Kayon Timber II, PT Kalang Baru, PT Kayu Klaban Timber, PT Inka Raya Plywood, PT Lamandau Utama Jaya, PT Kalang Murni, PT Andalan Raya Timber, PT Sumber Alam Ramin, PT Sinyal Djaya Ltd., PT Yusmin Trading, PT Giat Ika Aneka Timber and PT Guntur Gempita.

Inhutani III had previously held forest concessions of 725,000 hectares in Sampit, Central Kalimantan, which have now been depleted to only 107,900 hectares.

Kadar also told the hearing that his company has signed a memorandum of understanding with cigarette producer PT Gudang Garam and a foreign firm to set up a joint venture, which will establish a 176,000-hectare timber estate in Central Kalimantan.

The joint venture, which will be 40 percent owned by Inhutani III and 30 percent by each its partners, will start operation in May, he said.

He acknowledged that log theft and illegal logging are still common in Central Kalimantan. "Illegal logging is frequently conducted through collusion between businesspeople and forest security officers.

Inhutani III, therefore, has changed its security policy by training a hundred people from local tribes and employing them as security guards, he added.

Kadar also reported that his company's sales revenues increased by 78 percent to Rp 72.8 billion (US$31.5 million) last year from Rp 40.8 billion in 1994. (kod)