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)