Takeover of faulty forestry firms likely

Takeover of faulty forestry firms likely

JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo
said that the government will consider a "third party" taking
over two timber subsidiaries of the Dayak Besar Group, which have
allegedly violated forestry regulations and run into heavy debt.

The Media Indonesia daily reported yesterday that Djamaludin
told two executives of PT Dayak Besar Vincent Timber Co. and PT
Gelora Dayak Besar, the subsidiaries, Thursday that the
government was considering the takeover of the two firms'
management and ownership by a third party due to their alleged
heavy debts and poor records in forestry management.

Djamaludin did not identify the third party nor the amounts of
the two firms' debts.

The minister only said that the considered takeover was
required to "rescue" the companies' workers, machinery assets and
forest concessions, which are regarded the government's property.

Dayak Besar Vincent Timber and Gelora Dayak Besar, partially
owned by businessman Yusuf Hamka, both run forest concessions
totaling 170,000 hectares in Kutai, East Kalimantan.

The plywood mill owned by the two firms in Samarinda, East
Kalimantan, had reportedly dismissed its 2,400 workers without
warning on Monday.

Executives of Dayak Besar, including the two who went to see
the minister on Thursday, were not available for comment when
contacted at their office yesterday.

"The executives only come briefly in the morning," said a
secretary to The Jakarta Post.

The two executives, who saw Minister Djamaludin Thursday, were
identified as former West Java governor Solichin G.P. and Gatot
Suwagio.

The minister already threatened to impose "harsh sanctions"
against the two Dayak Besar firms for having violated several
forestry regulations.

The forestry ministry has issued orders which deny the two
firms the necessary permits to transport their logs and sawn
timber from their concession areas.

Media Indonesia also quoted Djamaludin as saying that he will
allow the two companies to regain the transport permits if they
are willing to let forestry officials post-audit their
operations.

Both Solihin and Gatot said Thursday that they closed down the
mill in Samarinda because they were "traumatized by the
government."

In 1993, the Ministry of Forestry revoked two forest
concessions and refused the extension of concession rights over
four forest areas previously controlled by the Dayak Besar Group.
(hdj)