Three of Djajanti's concessionaires revoked
Three of Djajanti's concessionaires revoked
JAKARTA (JP): The government has decided to revoke the
licenses of three Djajanti Group concessionaires after finding
proof that its wood-based industrial subsidiary, PT Nusantara
Plywood, was involved in selling illegal timber.
Minister of Forestry Djamaludin Suryohadikusumo, who made the
statement in a hearing with members of the House of
Representatives yesterday, said Nusantara Plywood has also been
fined Rp 1.3 billion (US$567,685) for its misconduct.
He added, however, that the three concessions would continue
to be operated in cooperation with the Djajanti Group under joint
operation arrangements with state-owned PT Inhutani III to
prevent mass layoffs and to ensure log supplies to PT Nusantara
Plywood.
In addition, he said, the terms of two other forest
concessions held by Djajanti, which are scheduled to end this
year, will not be extended. They will instead be managed by the
ministry's state-owned firms.
Nusantara Plywood, which is based in Gresik, East Java, came
under public scrutiny last year after the government suspected
the firm was fencing illegally-felled timber.
Under Ministerial Decree No. 393/1994 the government can
revoke the licenses of concessionaires related to wood-based
industrial firms if the latter are found to have bought illegal
timber for its supplies of raw materials.
Shortly after announcing the allegations last year, the
government issued a decree stipulating that Djajanti was no
longer allowed to self-assess its logging documents, but had to
undergo assessment by officials.
Djamaludin said the fine against Nusantara Plywood was
determined last December and the company settled the payment last
month.
According to government regulations, the fine is 10 times the
amount of reforestation fees and forest royalties which should
have been paid on the value of the illegal timber.
Djamaludin yesterday refused to disclose the names of the
delinquent concessionaires, but acknowledged that all three were
based in Central Kalimantan and controlled a total concession
area of about 300,000 hectares.
Djajanti, which is owned by businessman Burhan Uray, currently
holds 26 concessions which manage 2.8 million hectares of forests
in Maluku, Irian Jaya and Kalimantan.
Djamaludin said the group's concessions in Irian Jaya, which
provide raw material supplies for its wood-based industrial firm
in Maluku, will not be revoked.
"Djajanti has accepted the government's ruling and a decree on
the revocation will soon be issued," he said.
He said the three concessions will later be operated by
Djajanti under a two-year joint operational agreement with state-
owned PT Inhutani III.
Under the joint operation, Inhutani will handle management of
the concessions, while logging and other field activities will be
carried out by employing Djajanti's workers and equipment.
After a two-year period, Djajanti and Inhutani may decide to
set up a joint venture, while the workers may choose between
working for the joint venture or joining Inhutani.
"Nusantara Plywood will be guaranteed a sound raw material
supply because the timber (from the joint venture) will be
prioritized for it," he said.
"We will try to prevent as much as possible any negative
effects which could result from the revocation of the concession
licenses," Djamaludin added.
Soejono Varinata, a member of Djajanti's board of directors,
when contacted by The Jakarta Post yesterday, refused to comment.
He affirmed, however, that he would abide by the government's
ruling.
Responding to questions on PT Sumber Mas, which was also
accused last year of fencing illegal timber, Djamaludin said the
government's inspection team found no evidence that the company
had engaged in any illegal timber trade.
He said that based on post-audit checks by the government's
investigation team, Sumber Mas, which is also located in Gresik,
only under-invoiced its documents. As a result, it was required
to pay a fine of Rp 166 million. (pwn)