Indonesia: Illegal Logging, Mining Ravages Kalimantan, Costs Indonesia $36.4b

Jakarta Globe 28 Apr 11;

The Ministry of Forestry says illegal logging, land clearance, forest fires and mining has devastated Indonesian Borneo and cost the country an estimated Rp 311.4 trillion ($36.4 billion).

Raffles Panjaitan, director for forest investigation and protection at the ministry, said an estimated 1,236 mining firms and 537 oil palm plantation companies were operating illegally in Central, East and West Kalimantan on the Indonesian half of Borneo.

The companies had caused losses put at Rp158.5 trillion in Central Kalimantan, Rp 31.5 trillion in East Kalimantan and Rp121.4 trillion in West Kalimantan, he said.

The figures for the number of companies were supplied by district heads and governors.

Forestry Minister Zulkifli Hassan said the names of the companies, including a number of large operations with thousands of hectares of concessions, were not being released because they were still under investigation by the ministry in conjunction with the Judicial Mafia Eradication Task Force.

Also involved in the investigation were the AGO and the Environment Ministry, as well as the Corruption Eradication Commission who were investigating alleged abuses by authorities regarding the issuance of licenses.

He said the investigation would take three months.

Antara & JG

State loses Rp311 tln to Kalimantan resource exploitation
Antara 28 Apr 11;

Jakarta (ANTARA News) - Long ago, the four Indonesian provinces in Kalimantan island whose total land was about 550,000 sq km, were covered with vast forests and rich in mineral resources, a bounty of God which tickled the mind of businesses to tap.

No wonder, provinces in Kalimantan have since the era of former president Soeharto become the target of various mining firms and timber tycoons who ran both legal and illegal businesses to exploit the resources, including mining deposit and forests, which are known as the `lung` of the world.

However, the glory of Kalimantan`s forests is now only a story of the past as they have been damaged by logging activities, slash and burn practices, forest fires, mining activities and land openings for plantations.

A total of 1,236 mining firms and 537 oil palm plantation companies are believed to have operating illegally in Central, East and West Kalimantan provinces since in the past 10 to 15 years. As a result, the illegal operations of the companies have caused estimated losses of about Rp311.4 trillion to the state, according to Raffles Panjaitan, director for forest investigation and protection of the Ministry of Forestry.

Raffles Panjaitan said that of the total, Rp158.5 trillion losses were suffered in Central Kalimantan, Rp31.5 trillion in East Kalimantan and Rp121.4 trillion in West Kalimantan.

He said that several of the companies are large-scale firms as they hold land concessions on thousands of hectares of land.

In Central Kalimantan, there are 629 mining companies and 282 plantation firms. In West Kalimantan the number of mining enterprises reaches 384 and that of plantation 169 firms. In the meantime East Kalimantan has 223 and 86 mining and plantation companies respectively.

Reports filed by district heads/mayors and governors indicated that these firms had violated their licenses in their operations.

According to Forestry Minister Zulkifli Hassan a team of the forestry ministry and the Judicial Mafia Elimination Task Force have examined the findings based on the reports filed by the district heads/mayors and governor of Central Kalimantan province.

Based on the reports, the minister said, there are 282 plantation companies which are operating without a license on lands covering 3,934,963 hectares, while the number of illegal mining companies reaches 629 units which operate on a land of 3,570, 518.20 hectares.

The joint team, namely the ministry of forestry team and the Judicial Mafia Eradication Task Force, carefully studied the reports.

The joint team, the minister said, had examined nine companies opening up land for mining exploitation in a forest protected area, namely PT BBP, PT AKT, PT BST, PT DSR, PT SKEJ, PT HM, PT KPS, PT RC AND PT KSK.

Apart from that there are 54 plantation firms which have no licenses from the ministry of forestry with a total land exploitation area of 623,001 hectares. Of these areas, 5,000 hecrares are found in North Barito district, 20,000 hectares in South Barito district, 10,500 hectares in East Barito district.

They are also found in Kapuas district (150,410 hectares), Gunung Mas district (83,770 hectares), Katingan district (71,900 hectares), East Kota Waringin district (107,276 hectares) Seruyan district (40,445 hectares), West Kota Waringin district (38,700 hectares) and Lamandau district (86,000 hectares).

Other firms operating illegally are PT MASK (20,000 h), PT MSS (19,500 h), PT SP (15,000 h), PT RASR (20,000 h), PT KAL (20,000 h), PT DAM (20,000 h), PT ATA (15,000 h), PT TPA (15,000 h), PT MSAL (15,000 h), PT KKK (17,000 h), PT KDP (17,500 h) and PT GRMK (16,200 h).

Forestry Minister Zulkifli said his side did disclose the full names of the companies for the interest of further investigation. "We do not disclose their full names because they are still at the level of investigation as there are indications of violations that should be followed up," the minister said.

He said that in East Kalimantan, the number of problematic plantation companies reached 86 units with lands covering 720,829.62 hectares while that of mining is recorded at 223 units with a land of 774,519.45 hectares.

In West Kalimantan, problematic plantation companies number 169 units with a total areas covering 2,145,846.23 hectares and mining firms are recorded at 384 units which an combined area of 3,602,263.30 hectares.

The names of companies involved in East and West Kalimantan are not yet disclosed because they are still under investigation of the forestry ministry`s working group in cooperation with the Judicial Mafia Eradication Task Force.

To follow up the cases, the minister has formed a joint team which involved the ministry of forestry, the Criminal Investigation Agency of the Junior Attorney General for General Crimes, Junior Attorney General for Special Crimes, the Ministry of Environment, the Higher Prosecutor Office and Regional Police.

The joint team is formed to conduct examinations and investigations on violations in the exploitation of forest areas in the three provinces.

The minister said that investigation would take three months. "I ask the team not to stop until it finishes its task," Zulkifli said.

The ministry of forestry also asked the Corruption Eradication Commission (KPK) to conduct examinations and investigations on alleged abuse of authorities, corruption and collusion by apparatuses in the regions regarding the issuance of licenses for the problematic companies.

"We have priorities to the six districts," he said mentioning the initials of the districts as B and S in Central Kalimantan, K and K in East Kalimantan, and M and M in West Kalimantan.

In the meantime, Achmad Santoso of the judicial mafia task force said the working group of the forestry ministry and the judicial mafia task force would recommend four points.

The recommendation will include matters on provincial master plan, land border, formation of a organization, the strengthening of the capacity of the Forest Management Unit (KPH), integrated licensing and transparency of licenses on forest areas.
(T.A027/A014/H-NG)

Editor: Priyambodo RH

Logging, mining cost Indonesia $36 bn: official
Yahoo News 28 Apr 11;

JAKARTA (AFP) – Land clearance by hundreds of mine and plantation companies operating illegally on Indonesia's Borneo island has cost the country $36 billion, an official said Thursday.

"Encroachment of forest areas for illegal mining and plantation activities including logging in Kalimantan has caused losses of around Rp 311 trillion ($36.4 billion)," Forestry Ministry information centre head Masyhud told AFP.

More than 1,200 mining firms and 500 oil palm plantation companies operating illegally in Central, East and West Kalimantan provinces, on the Indonesian side of Borneo, are now being investigated by the Forestry Ministry, he said.

"Besides the companies, we're also investigating officials who may have abused their authority in the issuance of operating permits," he added.

The investigation, he said, would take three months.

Indonesia is the world's third-biggest emitter of greenhouse gases, due mainly to deforestation by the palm oil and paper industries, which is fuelled by corruption.

President Susilo Bambang Yudhoyono has been under pressure from environmentalists to implement a promised two-year moratorium on the clearing of natural forest and peatland, which was due to begin January 1.

Norway agreed in May last year to contribute up to $1 billion to help preserve Indonesia's forests, in part through the moratorium.

Rp 311 trillion ‘lost to forest misuse’ in Kalimantan: Govt
Tifa Asrianti, The Jakarta Post 3 May 11;

“Non-procedural” forest use in three provinces of Kalimantan has cost the state Rp 311.4 trillion (US$36.38 billion) in losses, according to a government report.

According to the report, which was released by the Judicial Mafia Taskforce and the Forestry Ministry, regents and mayors in East, West and Central Kalimantan were involved in “non-procedural forest use” for plantations and mining, including violating spatial planning agreements and failing to grant needed licenses.

In East Kalimantan, state losses were estimated to reach Rp 31.5 trillion and involved 86 plantation companies responsible for 720,830 hectares of forest and 223 mining companies responsible for 774,520 hectares, according to the report.

West Kalimantan suffered Rp 121.4 trillion in state losses allegedly caused by 169 plantation companies responsible for 2.14 million hectares and 384 mining companies covering 3.6 million hectares.

While in Central Kalimantan, the report said that 282 plantation companies responsible for 3.9 million hectares and 629 mining companies responsible for 3.5 million hectares allegedly caused state losses of Rp 158.5 trillion.

The estimates were based on an assumption that one forest hectare might yield 100 cubic meters of logs valued at Rp 60,000 per cubic meter and a reforestation fund of US$16 per cubic meter.

The ministry and the taskforce said they would ask the Supreme Audit Agency to develop a more precise method to calculate alleged state losses from non-procedural forest usage.

The report recommended criminal investigation of companies and local administrations involved in 483 alleged mining permit violations involving 2.9 million hectares in Central Kalimantan.

The taskforce said nine companies operating in protected forests should be a priority for criminal investigation.

The report also found 225 cases of alleged plantation permit violations connected to forested areas, recommending that law enforcement authorities probe 54 cases where companies operated without permits on 623,000 hectares in 10 regencies.

The taskforce and the ministry vowed to cooperate with the National Police, Attorney General’s Office and the Corruption Eradication Commission (KPK) to investigate the allegations.

Several cases have already been forwarded to the KPK including that of the Bukit Harapan cooperative, the Kutai national park development project and the case of PT Multi Tambangjaya Utama and the construction of fish ponds in protected forests in Kuburaya regency.

“We will replicate the law enforcement approach in Central Kalimantan to provinces across Indonesia,” taskforce chairman Mas Achmad Santosa said in a press release made available to The Jakarta Post.

The taskforce recommended that the central government and local administrations create an integrated permit system, establish a list of all forest area permits and monitor forest use.

The taskforce and the Forestry Ministry agreed that no more permits should be issued in Central Kalimantan until the process of forest area declaration and law enforcement integration was complete.

The ministry and the taskforce have scheduled similar reviews for Riau, South Kalimantan, West Java, Southeast Sulawesi and Gorontalo.

Berry Furqon, executive director of the Indonesia Environmental Forum (Walhi), said he appreciated the government’s plan.

“Whenever the taskforce finds non-procedural forest use, it means there is systematic corruption,” he said.