Excerpt from Planet Ark, 27 November 2009
'Logging in Indonesia can be a murky business involving navigating government bureaucracy to get permits and land concessions in one of the world's most corrupt countries, to winning the hearts and minds of villagers living near the rainforests.
As the issue of deforestation gets set to take center-stage at a global climate change conference in Copenhagen next month, the rapid decline of Indonesia's rainforests has come into the spotlight following heated protests by Greenpeace at the site of a carbon-rich rainforest in Sumatra that is slated for logging.
Indonesia's government has pledged to slow down deforestation, but the process of granting concessions is far from transparent in a country where bribe-taking by officials is common and local governments actively seek investment by logging firms, as well as palm oil plantations on cleared forests...
Home to about 10 percent of the world's rainforests, deforestation in Indonesia occurred at an average rate of 1.08 million hectares a year between 2000 and 2005, according to the Ministry of Forestry. A 2007 World Bank report found Indonesia to be the world's third largest emitter of greenhouse gases behind the United States and China, largely due to massive fires to clear peatland forests. The government rejected the report...
The Forestry Ministry last week temporarily suspended operations by Asia Pacific Resources International Holdings Limited (APRIL) in Kampar Peninsula, a stretch of rainforest with a rich and rare flora and fauna, including the endangered Sumatran tiger...
Given that APRIL's logging camps were set up months ago, some conservationists wonder why this process was not done before APRIL was awarded the 56,000 hectare government peatland concession. Peatlands are 50 to 60 percent carbon and when they are exposed from logging or dredging, they release massive amounts of greenhouse gases into the atmosphere.
The permit review followed a high profile campaign by Greenpeace activists who camped outside APRIL's concession in dengue-infested rainforest. Protestors chained themselves to APRIL's bulldozers, leading to the arrest and deportation of several activists and foreign journalists.
The process in which logging permits are granted in Indonesia is far from transparent. To obtain a permit, a company must have its application documents, including recommendations from local government officials and environmental reports, processed by the Ministry of Forestry.
"Corruption can happen at any stage of the process. You can pay for any report or letter you need and there often is falsification of documents," said Bambang Setiono, director of the Environmental and Natural Resources Economic Institute and one Indonesia's foremost experts on money laundering in the forestry sector.
"It would be very easy for the Minister or the department to check that the documents match conditions on the ground but often they do not."
Indonesia's Corruption Eradication Commission has launched several probes relating to the Forestry Ministry which processes permit applications, but, so far, no major heads have rolled.
After the permits are obtained, the logging companies all too frequently turn their sights on winning the hearts and minds of villagers living near their concession, offering them gifts and assistance for their support.
"I don't think these activities are just for the sake of the local people. If they don't do this, the local people will not cooperate. They are buying the support of the local people," said Setiono.
Often the logging companies bring services and infrastructure to sorely neglected villages such as Teluk Meranti, an 800-family fishing hamlet on the fringe of APRIL's Kampar concession, which suffers daily power cuts and has just a mudslick of a main road.
There are over 500 logging companies operating in Indonesia. APRIL and Asia Pulp & Paper (APP) are the biggest. Other firms include Kiani Lestari, Kiani Kertas, Tanjung Enim Lestari Pulp and Paper and Sumalindo Lestari Jaya.
In the wake of the Greenpeace protests at APRIL's Riau concession, Finland's UPM-Kymmene, the world's third largest paper manufacturer, ended its pulp purchase contract with APRIL in November. It cited better access to pulp thanks to its raised stake in a mill in Uruguay.
The Finnish firm stressed in a press release its commitment to "forest management and forest harvesting practices based on the principles of sustainable development," and said this also applied to its use of external pulp suppliers, but declined to comment on whether its decision to drop APRIL was also triggered by the firm's forest management practices...'
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