Timber firms in drive to keep power

JAKARTA (JP): The country's major timber companies are maneuvering to maintain their might which is threatened by a progressive forestry regulation, a forestry analyst warned.

Adlan Thalib said on Saturday the timber companies were preparing strong lobbying in attempting to pressure the government to change the regulation.

A widely publicized demand for the revocation of 51 concession rights awarded by former minister of forestry and plantations Muslimin Nasution is part of their campaign to cancel the forestry regulation, he said.

"They are trying to put pressure on the government to revoke the new policy," Adlan Thalib was quoted by Antara as saying.

Muslimin issued a new forestry regulation early this year, limiting the operation of major forest concession holders.

According to the new policy No. 41/1999, a timber company's forestry concession rights should not exceed 100,000 hectares in a province or 400,000 hectares nationwide.

The regulation also emphasizes the involvement of local communities through cooperatives, small and medium scale companies and universities in monitoring forest management and logging activities.

At least 423 private companies are involved in logging activities on 61.7 million hectares.

According to official data, the Kayu Lapis Indonesia Group owned by Hunawan Widjajanto is the largest forest concession holder. It owns 3.5 million hectares of forest concession areas in the country, followed by Burhan Uray's Djajanti Group (2.9 million hectares), Prajogo Pangestu's Barito Pacific Group (2.7 million hectares) and Mohamad "Bob" Hasan's Kalimanis Group (1.6 million hectares).

The government has said the concession rights of the major timber companies would be adjusted to the new regulations when their current terms expired.

Adlan said the major timber companies would be unrelenting in trying to pressure the government.

Media reports said there were allegations that Muslimin's awarding of the 51 forest concession rights early this year involved KKN, the local acronym for corruption, collusion and nepotism.

Newly appointed Minister of Forestry and Plantations Nur Mahmudi said in Yogyakarta last week that his office was still investigating the allegation.

He said the awarding of the concession rights should be based on the new regulation, according to the stipulation for the involvement of members of the local community and small scale companies.

"If the new concession rights are based on the new regulation, it won't be necessary to revise them," he said. (06/23)