Indonesia to Auction Timber Concessions Awarded Through Graft
7/3/99
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RELAYED TEXT STARTS HERE:
Title: Indonesia to Auction Timber Concessions Awarded Through
Graft
Source: Bloomberg L.P.
Status: Copyright 1999, contact source for permission to reprint
Date: July 3, 1999
Jakarta, July 2 (Bloomberg) -- Indonesia will auction off by the end
of the month timber concessions that were obtained with graft in a
move which will strip many Suharto-linked associates of their
holdings.
Forestry Minister Muslimin Nasution said the government will release
a list of forestry companies who obtained their concessions through
corruption.
These include companies belonging to former trade minister and
Suharto ally, Mohamad ``Bob'' Hasan, the children of former president
Suharto, and timber tycoon Prajogo Pangestu. Pangestu heads PT Barito
Pacific, Asia's largest plywood maker.
Earlier this month, Director General of Utilization of Forest
Production Waskito Surjodibroto said the ministry found that Suharto,
his family and associates had stakes in 27 timber companies and eight
industrial forest estates covering a total of 7.15 million hectares.
``They will not be allowed to own more than 50,000 hectares in
concessions,'' Muslimin said.
Since the fall of Suharto, the new administration has pledged to
eradicate corruption. The government's efforts have yielded little
results.