Jakarta Globe – AFP, Novianti Setuningsih, October 28, 2013
As Indonesia’s economy rapidly, swaths of biodiverse forest across the archipelago have been cleared to make way for new business ventures. (AFP Photo) |
An
antigraft watchdog has urged Indonesian law enforcement institutions to
strengthen their fight against crimes in the nation’s forestry sector.
The call
came after Indonesia Corruption Watch (ICW) released a report that showed
potential state losses from such crimes totaling Rp 691 trillion ($62 billion)
between 2011 and 2012.
Lalola
Estele, a researcher with ICW, said the total losses had been calculated from
124 cases of forest crimes recorded by the watchdog from 2011 to 2012.
“The crimes
vary from forest conversion, for example the one million hectares of palm oil
projects. The second is the illegal use of forest products. The third is tax
evasion, for example in the case of Asian Agri,” Lalola said at the ICW
headquarters in Jakarta on Sunday.
Lalola
emphasized that the problem pointed to the weak law enforcement efforts in
charging the corporations involved in the foul play.
According
to the organization, of the 124 cases, police had only charged 37 field
operators in 20 cases, and a small percentage of company directors and
legislators from the House of Representatives in six of the cases.
As such,
ICW called on Indonesia’s law enforcement institutions to implement the money
laundering law and the anti-corruption law in charging companies, which would
make the companies and not just their officials liable to criminal charges.
“The
forestry and plantation law doesn’t recognize the act of charging a
corporation. That’s why most of those who are charged are individual actors in
the field and not the companies,” Lalola said.
ICW’s
report reflects the grim reality of prevalent crime in the nation’s forestry
industry over recent years.
In August,
the University of Indonesia branch of the People For Indonesian Judicial System
(MAPPI) organization claimed that potential state losses in a corruption case
involving Burhanuddin Husin, the former head of Kampar district in Riau
province and the former chief of Riau’s forestry office, could reach up to Rp
687 trillion.
Burhanuddin
was found guilty in October 2012 and sentenced to two years and six months in
prison, in addition to Rp 100 million worth of fines, for practices of
corruption in approving annual working plans for 14 companies in Pelalawan and
Siak subdistricts during his time in office between 2005 and 2006.
The court
had deemed the licenses invalid as they failed to comply with Forestry Ministry
policies because they included swaths of natural forest.
According
to Muslim Rasyid, coordinator of the Riau Forest-Saving Network (Jikalahari),
the approval of the companies’ permits had subsequently resulted in the
deforestation of 38,357 hectares of land, which, with thorough calculations,
could see up to Rp 687 trillion of wasted state losses. That amounts to more
than the Rp 519 billion calculated by prosecutors from the Corruption
Eradication Commission (KPK) in Burhanuddin’s case.
Meanwhile,
in June, the names of several high-profile public officials surfaced in a
forestry corruption case in West Kalimantan, East Kalimantan and South Sumatra,
which allegedly cost Rp 1.92 trillion worth of potential state losses.
“Three
ministers [are said to be involved], as well as five other regional chiefs or
former regional chiefs, one ministerial adviser, one regional government
adviser and six company directors,” Tama S. Langkun from the Anti-Judicial
Mafia Coalition, who is also director of investigation with the ICW, said in
June.
However,
Tama refused to disclose the names of the 16 individuals involved in the case,
but promised to submit the list of names to the KPK.
“We will
guarantee that these names will be submitted to the KPK,” he said, as quoted by
Waspada.co.id.
The 16
individuals are alleged to be involved in five different cases of corruption,
including an alleged corruption case at a state-run sugar cane plantation in
South Sumatra with Rp 4.8 billion worth of potential state losses, as well as
alleged corruption in the conversion of forest areas into oil palm plantation
in Kapuas Hulu district in West Kalimantan, with potential state losses of up
to Rp 108.9 billion.
Separately,
a case of illegal logging activities also surfaced earlier this year, involving
low-ranking police officer First Insp. Labora Sitorus from West Papua’s Sorong
district, which further damaged the police’s efforts against forest crimes.
Labora was
arrested in May after police revealed that the Financial Transaction Reports
and Analysis Center (PPATK), the government’s anti-money-laundering watchdog,
had traced transactions worth Rp 1.5 trillion ($134.8 million) passing through
his bank accounts between 2007 and 2012.
The money
was believed to be linked to his alleged fuel smuggling and illegal logging
activities, for which evidence included 115 shipping containers bound for China
— traced to one of Labora’s companies, Rotua — holding a total of 2,264 cubic
meters of merbau wood, a rare hardwood prohibited for commercial logging and
for export as rough-sawn timber.
The
London-based Environmental Investigation Agency (EIA) earlier in May released
video footage of illegal loggers harvesting merbau and other species for Rotua
from forests on Batanta Island in the Raja Ampat district of West Papua, an
ecologically important area with high levels of plant and animal biodiversity.
Rotua has
also been reported for receiving timber from the forests of Sorong, Bintuni and
other regions of West Papua, the EIA said.
According
to the EIA, Labora’s network transferred approximately $100,000 to the National
Police headquarters in Jakarta and a similar sum to the Papua province police
chief.
The use of
the money laundering law in fighting crime in the nation’s forestry sector is
considered important as such practices are often used to clean up the trail of
dirty money, according to ICW.
“Many of
the business licenses issued in the forestry sector involve corruption, and the
results from such practices would get cleaned up through money laundering,”
Lalola said.
She
highlighted that in the case of Burhanuddin, the court’s failure to charge the
companies involved had resulted in an inadequate seizure of assets.
“Institutional
crime policies have existed in Indonesia since the 1950s and are regulated in
the anti-corruption law, money laundering law and others, but law enforcement
officers remain reluctant in using them,” she said.
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