Timber fencing and smuggling still rampant

Timber fencing and smuggling still rampant

JAKARTA (JP): A government raid has discovered more than
200,000 cubic meters of sawn timber being illegally transported
and bought by wood-processing companies, proving that timber
smuggling and wood fencing are still rampant practices.

Director General of Forest Utilization Titus Sarijanto told
reporters yesterday that post-audit results -- based on the
reports of an operation team set up to curb forestry crime --
found 234,943 cubic meters of illegally sawn timber during a
recent raid in East Java.

"We have evidence confirming that there has been illegal
transportation and selling of timber... It is a pity that several
wood processing firms are also involved by buying the illegal
timber," he said.

Titus explained that the wood was accompanied by counterfeit
documents, with either fake serial numbers, or carrying a serial
number which has already been used.

Either case involves the use of counterfeit forms which can
only be issued by the state-owned money printing company,
Peruri.

The transportation document forms -- locally acronymed SAKO
for processed wood and SAKB for logs -- must be filled out by
forest concessionaires before they can sell the timber to wood
processing firms.

The documents ascertain that the forest royalties and
reforestation funds for the timber have been paid.

These are mandatory fees guaranteeing that forest
concessionaires manage their forests in an environmentally-
sustainable manner.

Titus, who was accompanied yesterday by Director General of
Forest Protection and Nature Conservation Soemarsono, said 386
fake SAKO and SAKB forms were found in raids on East Java's ports
of Surabaya and Gresik.

The illegal timber, he said, caused financial losses of at
least Rp 24.6 billion (US$10.69 million) in unpaid forest
royalties and reforestation funds.

And if prices of logs are accounted for, the losses could
exceed $1.06 billion, Titus said.

"We have uncovered a syndication of document counterfeiters
consisting of 11 people. They do everything from ordering,
printing and distributing the phony documents," Titus said.

The syndication members, who are currently waiting to go on
trial after being arrested in May, claim that they have
distributed some 500 counterfeit documents in Indonesia, Titus
said.

Kalimantan

Apart from East Java, the government has also uncovered
similar findings in Kalimantan, where most of the illegal timber
was transported from Central Kalimantan to West Kalimantan.

The findings include 2,260 cubic meters of logs bought by PT
Rimba Ramin, 2,465 cubic meters of logs purchased by PT Karunia
Kapuas and up to 11,589 cubic meters of logs bought by a number
of other wood-processing mills.

Titus acknowledged the important role of brokers in such
cases. He said the government has repeatedly warned forest
concessionaires not to sell to brokers and reminded wood-based
industrial firms not to buy from brokers.

"Brokers will do everything to claim that their illegal
purchases of timber are legal," he said.

But he acknowledged that it will be difficult to stop their
operation since the unfavorable financial conditions of
concessionaires often require wood-processing companies to pay
cash for their timber.

"Since this is not always easy for wood-processing firms,
concessionaires prefer to turn to brokers, who are willing not
only to pay cash for the timber but also sell it with a credit
arrangement to wood-processing companies," Titus said.

Last month the government uncovered a new system of wood
smuggling at Jakarta's Tanjung Priok harbor. The operation
attempted to smuggle up to Rp 45 million worth of processed wood
from Sulawesi for exports. (pwn)