Indonesia vows action against laggards on forestry fines
The unprecendented crackdown targeting oil palm plantations and mines has unnerved the industry
[JAKARTA] Indonesia’s military-backed forestry task force has threatened legal action against dozens of plantation and mining companies refusing to pay hefty fines for operations in forest areas that authorities deem illegal.
Goodhope Group, part of Sri Lankan conglomerate Carson Cumberbatch, and Singapore-based Musim Mas Group were among companies that did not attend when summoned, the task force said in an Instagram posting.
The unprecendented crackdown since last year targeting oil palm plantations and mines has unnerved the industry, buoying global palm prices for fear it will hit output, and more recently, triggering rallies in the prices of metals like tin.
“For companies that still object, those that fail to appear for summons or continue unauthorised activities in forest areas, the task force will take more progressive legal action to ensure the state’s sovereignty,” spokesperson Barita Simanjuntak said.
The task force has taken over 8,800 hectares of mining areas turning out items such as nickel, coal, quartz sand and limestone, and palm planations across 4.1 million hectares or roughly the size of the Netherlands, it said in Wednesday’s (Jan 14) statement.
As many as 25 of the 32 mine companies and 29 of the 83 plantation firms summoned to pay fines have objected, failed to attend or sought rescheduling, it said.
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Seven mining and 54 palm oil companies have paid or agreed to pay fines of US$552 million, the task force added.
Companies that complied include the palm oil units of conglomerate Salim Group which paid fines equivalent to US136 million, Best Agro Group, which forked over US$98 million in fines, and US$57 million by a unit of Sampoerna Agro.
Astra Agro Lestari also paid a fine of US$34 million, the task force added in the Instagram post.
Astra Agro Lestari said on Thursday (Jan 15) its operations remained normal and do not bear significant impact, adding the company abides by the government’s policy on overlapping land claims.
Goodhope and Musim Mas face fines of US$107 million and US$20 million, respectively.
They did not immediately respond to requests for comment. REUTERS
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