Timber firms in drive to keep power

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)