Two plywood firms accused of illegal trading

JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo said yesterday that there have been "strong indications" of illegal timber trade and smuggling by two large plywood companies, PT SM and PT NP in Gresik, East Java.

Djamaludin in a press conference yesterday said the findings were reported after a special Joint Team for Forest Security conducted a two-week investigation during the Aug. 4 to Aug. 19 period.

"As a result, 12,000 cubic meters of logs worth approximately US$960,000 and a number of counterfeit logging documents have been confiscated," he said.

Djamaludin said 15 people -- from the two companies, as well as from three concessionaires and local government offices -- allegedly involved in the scam, have been questioned.

The dossiers on the case, he added, have also been completed.

"We hope to show them that at this time the government is not fooling around. We are implementing Presidential Decree No. 22/1995 on the Joint Team for Forest Security and we are serious in handling such illegal actions," Djamaludin said.

Joint team

The Joint Team for Forest Security involves government officials from the Ministry of Forestry, police and attorney offices and members of the Armed Forces.

The team was established to monitor log trade and distribution and has the authority to take legal action against offenders on the spot.

"It is very disappointing to see the concessionaires and plywood companies disobey the trust which the government has given to them, that is to manage forests in a sustainable manner. These companies well know how and what to report about the timber they receive or procure," he said.

Djamaludin said, however, that a number of local officials of his forestry and other related offices, were also to blame because several of them -- including those in the Joint Forest Security Team -- were found to "encourage, ignore or take part" in the illegal practices.

"This shows that collusion (between private concessionaires and government officials) is at a very serious level," he said.

Djamaludin, who was accompanied by Inspector General Hariadi Darmawan yesterday, said that if any of his subordinates were found to have accepted money from the two companies, "the ministry will not stay still".

The ministry's officials suspected to be involved in the case, he said, have not gone under further investigation.

Djamaludin acknowledged that the illegal trade, distribution and smuggling of logs were caused by the lack of monitoring activities at strategic points, such as river mouths and harbors; lack of security officials and patrolmen; lack of dedicated field officials and supervisors at all levels and sectors; loopholes in local administration regulations which either allow such actions to occur or are inconsistent with regulations of the forestry ministry; and lack of severe penalties to punish wrongdoers.

"The evidence and involved parties are clear. Now it is up to the Ministry of Forestry to proceed," he said.

Djamaludin said the illegal timber would be used for low-cost housing and none would be auctioned. (pwn)