***********************************************

WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

One Surinamese Timber Deal Scuttled, Others Continue

***********************************************

Forest Networking a Project of Ecological Enterprises

September 3, 1995

 

OVERVIEW & SOURCE

For some time now we have been following the on again, off again

moves by primarily Malaysian and Indonesian timber companies to

bring Asian style industrial forest practices to South America. 

Several one million hectare rainforest timber concessions have

been proposed for Suriname.  SKEPHI, the Indonesian Forest

Conservation Network, provides excellent details into Indonesian

companies' involvement in plans to liquidate large areas of

Suranimese rainforest wilderness.  Recent developments include

reports that MUSA, an Indonesian timber company, will not be

granted a one million hectare plus concession.  However, plans for

SURI ATLANTIC of Indonesia and BERJAYA of Malaysia to be granted

logging concession of 1,105,000 hectares by the Surinamese

government continue.  Please join the thousands of individuals,

politicians and NGOs around the world protesting short sited

forest development policies in Suriname. 

 

SKEPKI is an excellent local Indonesian forest conservation

organization; whose willingness to speak out on this issue, shows

great courage and deserves international support.  Note the

attached piece was not written in the author's native language. 

It is passed on here as it was sent out by SKEPHI, with only minor

formatting changes.

g.b.

 

*******************************

RELAYED TEXT STARTS HERE:

 

/** list.consbio: 156.0 **/

** Topic: SURINAME **

** Written  8:41 PM  Aug 28, 1995 by skephi@server.indo.net.id in

cdp:list.consbio **

From: skephi@server.indo.net.id (bambang ryadi soetrisno)

 

Press RELEASE

SKEPHI August, 25 1995

--------------------------

 

SURINAM FORESTRY DEAL OF ONE  MILLION HECTARES ANNULED

 

INTERNATIONAL CAMPAIGN FOR SURINAME'S FOREST HEIGHTENING

CAMPAIGN VISIT BY A GLOBE MEMBER TO INDONESIA SOON

 

SKEPHI DEMANDS FURTHER INVESTIGATION ON THE OTHER INDONESIAN

INVESTOR

 

NV. MUSA (MITRA USAHA SEJATI ABADI), the Indonesian logging

company from the Porodisa Group, which in Surinam  has been the

source of social disputes and political uproar, at last seems to

have failed in acquiring an additional logging concession of 1,105

million hectare. Recently, the negotiating commission of the

Surinam's Ministry of National Resources Management,  has spoken

for the annulation of it's preliminary agreement  with MUSA,

previously agreed upon in September 1994. With the halting of 

MUSA's ambition to further deforest Surinam, there remains SURI

ATLANTIC, another Indonesian investor. SKEPHI deems it necessary

to continue its investigation and campaign to prevent the second

Indonesian logging company from operating.

 

MUSA FAILS

Through a memorandum earlier this week, the special commission

under the Surinam's Ministry of Natural Resources Management (Min.

of NRM), responsible for the preparation and granting of forest

logging concessions, the Minister of NRM, Franco Demon, was

reported that the whole process of negotiation with MUSA has been

stopped. This  has been reported by the leading Surinam's daily, 

De Ware Tijd (DWT) on 21 August 1995. The memorandum explained

that the negotiation with MUSA which has been going on for the

last one year has not brought the expected result.

 

The commission, in particular, condemned the fact that MUSA has

been repeatedly unwilling to present its financial background,

including of the PORODISA GROUP, its mother company in Indonesia.

The commission also conveyed, until last week MUSA has also been

unable to submit the other principle requirements for its

investment,  namely a clear investment plan.

 

BLUFFING AND CUNNING

MUSA, arriving almost two years ago, has had big ambitions in

Surinam. Widespread protests within the Surinamese community,

including from the local timber industry, alleged that MUSA has

been ambitioning logging rights of millions of  hectares, ranging

between six to ten millions of hectares. SKEPHI's European office 

managed to acquire authentic proof, that it had indeed had these

ambitions. A document disclosed that MUSA has registered another

69 companies in the Surinamese Chamber of Commerce.

 

Previously, to make its arrival and plans impressive, MUSA

directors in Paramaribo stated that an approximately USD.1,5 

billion would be invested in the country, mostly in the forestry

sector. Despite protests, it soon managed to obtain logging rights

of 150.000 hectares in the Apoera district, West Surinam, without

the necessary approval by the Surinamese National Assemble

(parliament).

 

Not long after, in the second half of 1994, despite protests

extending internationally, MUSA is said to stand side by side with

BERJAYA and SURI ATLANTIC in eyeing another concession rights of

1,105 million of hectare. SKEPHI has found inextricable links,

that SURI ATLANTIC may be coming from the same timber industry

source in Indonesia, as MUSA did. Several prominent business

figures with most powerful political backings in Indonesia are

suspected to be behind the move of these Indonesian investors to

Surinam

 

After enduring unceasing critics and at the moment that the

Surinamese government takes a more critical stance, Irawan Imoek,

the director of MUSA, started to breaks his silence. Last week, he

conveyed that MUSA's investment in the timber processing industry

in Surinam, will amount to US$. 149 million. But on his previous

statements to invest US$ 1,5 billion remains unclear.

 

CONFLICT LADEN

Throughout almost two years, MUSA's activities have met with

endless resistance, both from the indigenous population of the

Amerindian ethnic who live in  and around forests, as well as from

Surinam community in general. The granting and negotiations of

logging concessions by Surinamese government has so far not been

duely discussed or communicated to the indigenous population

living in the interior. Ressistance has since also arisen within

the Afro-Marron tribes against the granting of further logging

concessions to the Malaysian BERJAYA and Indonesian SURI ATLANTIC.

 

The granting of these concessions is considered as a blunt

violation of the PEACE TREATY between the Surinamese central

government and the indigenous population in the interior,

established after the bloody CIVIL WAR ending only in 1992. The 

PEACE TREATY, among other constituted the rights of the interior

and indigenous population to traditional land and autonomy in the

economic activity.

 

The granting of logging concessions to MUSA and the two other

investors is regarded as an harassment of the rights of the

indigenous people, regulated en detaille in the Peace Treaty, such

as the rights to develop their own 'economic zones'. Instead, what

have been happening, such as repeatedly reported by the Surinamese

media since last year, were complains against MUSA of not always

having paid for the timber it purchased from the local people,

even in areas far beyond it's concession in West Suriname. 

 

UNSUSTAINABLE PRACTICES

According to various sources, including Surinam's government

officials, MUSA has been reported as repeatedly violating various

forestry regulations, such as logging protected tree species, 

logging beyond its boundary, distribution of chainsaws and heavy

machines to local people, systematic manipulation of  forestry

taxes, and even manipulative and forced timber purchases from the

increasingly marginalized indigenous people. MUSA has openly

admitted to purchased part of its timber supply from 'middlemen',

notorious for bad reputation criminally as well as on the aspects

of human rights violation, such as from Surinam's former military

ruler, Desi Bouterse  (DWT, 11/8/1995).

 

THE BRIBING OF  POLITICIANS

Irawan Imoek, MUSA's director, in response to the current position

of the commission of Ministry of NRM last week, started to show

his annoyance. In his opinion, he has submitted all the

information asked from him. He stated that he is now at a loss for

the ways to fulfill the answers in the commission's requirements.

His company, he said, has "spent a lot of money" to collect the

data's required. He is annoyed at the final decision of the

commission. He is even suspicious that the decision has been taken

purposedly.

 

Little could be denied with regard to the funds that MUSA has been

spending. An editorial of  Surinamese wekly, de Surinamese

Weekkrant, has even discussed the bribery of the Surinamese

politicians. The article alegged that MUSA has bribed  KPTI (a

conservative Javanese party) and NPS leaders amounting to US$ 11

million. SKEPHI sources in Surinam's politics has even put en

detail names of several Surinam's political figures who have

enjoyed extravagant comforts prior and during the visit of 

Venetiaan, the Surinamese President, to Indonesia, May last year.

An outstanding example who clearly takes sides with MUSA, is Mr.

Willy Soemita, currently the Surinamese Minister of Social

Affairs. In his country, he is known to be a corrupt politician

and who had once served two years of imprisonment for a corruption

case.

 

SOUTHERN EXPLOITERS

The perspective of a southern country threatened to be deforested

by a company from another southern country, such as with the case

of MUSA, has since the beginning been potential to smear the

Indonesian image internationally. Surinam is a country having

almost similar past with Indonesia. Surinam is also a member of

the Non-Aligned Movement, currently chaired by Indonesia.

 

Another Indonesian investor, SURI ATLANTIC, together with  the

Malaysian BERJAYA, are currently the remaining Southeast Asian

logging companies, waiting to be granted logging concession of

1,105 hectares by the Surinamese government. Provided that MUSA be

stopped from further deforesting Surinam, there remain above

mentioned investors to potentially mar the relations between these

southern countries.

 

SKEPHI's POSITION:

 

1. Support all international activities that prevent irresponsible

the selling and exploitation of forests as Surinam's natural

resources. This support applies to the efforts by international

organisations such as WRM, IUCN, WRI, Conservation International,

GLOBE, and multilateral institutions such as Inter-American

Development Bank, the World Bank, EU, provided all efforts are

directed for the sustainable existence of Surinam nature and

indigenous communities.

 

2. Appeal to concerned members of the Indonesian House of

Representative to defend the image of Indonesia abroad, to take a

clear position on the practices of Indonesian logging investors in

Surinam and other countries, by, in the form of a meeting which is

open to public.

 

3. Appeal to the government of the Republic of Indonesia to

simultaniously and comprehensively take practical and policy

measures on Indonesian forestry investors to prevent prolonged and

repeated occurrence of similar cases.

 

4. Appeal to the Indonesian mass media to break the culture of

'fear' in its works, to assist in the matter by assuming a role in

investigating the background and business linkages of the above

mentioned Indonesian logging investors.

 

5. Appeal to the highest officials in the Indonesian government,

in particular,and to prominent figures in the society, such as

those from the Department of Forestry, Department of Environment,

Indonesian Eco-label Institute to take a moral-political position

and policy measures to prevent such cases from being repeated.

 

6. SKEPHI will continue its effort to investigate on the

background of the other Indonesian and Malaysian logging company

and its solidarity campaign for the indigenous people of Surinam.

 

With this position SKEPHI means to halt Indonesian companies from

being given leeway as new  southern exploiters, in this era where

south-south exploitation of natural resources start to widespread.

In the mean time, the campaign started almost two years ago, has 

indeed only been increasing.

  

The fate of Surinam's forest today has not only been the concern

of environmental organisations alone. The case of  the selling out

the Surinamese forests has also been brought to a UN conference 

in Geneva by the representatives of the affected  Surinam-

Amerindian community, July last year .

 

Members of  the Global Legislators Organisation for a Balanced

Environment (GLOBE) will soon discuss a Resolution to stop the

Surinamese government to grant forest concessions to above

mentioned Southeast Asian companies.

 

On the 31st of August, SKEPHI and Mr. Hemmo Muntingh, a GLOBE's

founding member will present reportings to the Indonesian House of

Representatives (DPR-RI) in Jakarta.

 

Indro Tjahjono,                           Hasjrul Junaid,

SKEPHI-Indonesia Coordinator              SKEPHI-Europe Coordinator

 

More: A draft Resolution which will be forwarded to the GLOBE

Conference  in Tokyo, August 28-29, 1995,  and which will be

submitted to the Indonesian House of Representatives in  the

coming visit of a founding member of GLOBE to Indonesia in the

next few days, can be ordered from SKEPHI (tel/fax:

#62-21-4711388)

 

 

--------------------------

 

News article published in Indonesian daily _Bisnis Indonesia_

(Sunday, 23 July 1995)                        

(English translation)

 

MUSA Group's position threatened in Suriname

 

The expansion of Indonesian entrepreneur abroad is not always

smooth sailing. MUSA Group that has planned to open up a six

million hectare forest in Suriname received criticism and is in

danger of being kicked-out due to competition from Malaysia and

primarily because of environmental issue.

 

The investment of one Indonesian company has caused social and

political unrests in Suriname. Mitra Usaha Sejati Abadi (MUSA) or

Eternally True Business Partner Group that is involved in Logging

Concession (HPH) in Suriname, is facing very strong criticism from

some political force in that country.

 

The European Community as well as a few environmental NGOs,

including in the US keep focusing on the activities of MUSA Group

belonging to Irawan Imoek. Leading publications such as Time, The

Economist and Asiaweek, even printed fairly long articles on the

expansion of the Indonesian business group.

 

Last year MUSA's investment was being opposed by forestry and

logging entrepreneurs' community, NGOs, the people of Suriname and

various mass world media because of its plan to control a 6

million ha consessionned area (compare it with the total area of

Suriname which is 14 million ha).

 

According to the Indonesian Forest Conservation Network (SKEPHI),

last year Suriname's justice department had the opportunity to

process efforts to evict MUSA Group to quench the demand of the

people in that Central American country, even though ultimately it

was not carried out yet.

 

SKEPHI's representative in Europe recently brought MUSA's issue to

the attention of the Environment Minister, Sarwono Kusumaatmadja

dan Forestry Minister, Djamaloeddin Soeryohadikoesoemo. According

to Hasjrul Junaid SKEPHI's European coordinator, the problem of

MUSA's investment in Suriname could tarnish the image of Indonesia

from the international point of view. We categorize this case

under a form of south-south exploitation, which must be opposed.

Especially considering Indonesia's position as chairman of the

Non-Aligned Movement which must maintain its image, Junaid

clarified to Bisnis.

 

Analyzed

The Forestry and Environment Ministers, Junaid said, is analyzing

Skephi's report. Djamaloedin even promised to give inputs on the

activity of MUSA Group in Indonesia.

 

Aside from conveying the information to the Environment and

Forestry Ministers, SKEPHI is also preparing an opinion-gathering

meeting with DPR's IV Commission and to invite to Indonesia

natives from  Suriname who suffered because of MUSA.

 

Rawan Imoek , head of MUSA or Porodisa can not be contacted in

Jakarta as well as in Surabaya. He is not yet in the league of big

entrepreneurs. However, in Suriname, Imoek conveyed to the

government of that country that he will invest at least US$1.5

billion.

 

Last year SKEPHI filed a protest to the Indonesian government to

investigate and delay the business permit of that group until

there is a clarification on the case that it caused in Suriname.

 

MUSA Group originates from some companies like PT Porodisa Trading

Co. (Kaltim), PT Pacific Bontang Raya Industries (Bontang), PT

Putera Bengalon (Kaltim), PT Meratus Kalimantan Timber (Kaltim),

PT Tembaru Budi Pratama (Sulut).

 

For the forestry business in Suriname, Notosoewito--a man who has

connections with high-ranking officials in Indonesia-- has been

said to hold  a Commissioner President position.

 

Mysterious

MUSA's presence in Suriname had been considered mysterious since

the beginning. Many trade and professional associations of that

small country were not included in the dialogue of investment

acceptance procedure. Time said that the investments and 

concessions given to MUSA gave rise to other effects such as labor

piracy, relocations of Indian villages and environmental

pollution. The concessions that are opposed by Suriname's

people are the forestry sector, wood industry, palm oil, alcohol

production and natural gems.

 

MUSA's initial investment of US$1.5 billion covers an area of 1.2

million hectares and the total conversion planned is 6 million ha.

In a few months after the investment permit was given, the group

had opened 70 companies (NV) in Suriname.

 

The investment permit of MUSA was given after the visit of

Suriname's Social Minister to Indonesia. During that visit a

joint-venture agreement was signed between Suriname-Indonesia in

the field of forestry for 20 years.

 

Major General (Police) Koesparmono Irsa while attending the

General Meeting of the International Criminal Police Organization

(ICPO) in Rome last year, stated that the government of Suriname

actually filed an official claim to the Indonesian governent

because of non-payment of tax on the part of MUSA.

 

Up to now  MUSA is not paying tax to the government of Suriname,

so that the country will file an official claim through the Dutch

Police, said Koesparmono Irsan imitating the statement of the head

of Dutch's Interpol, G.J. Goosens.

 

Illegal

The concession given by the government of Suriname's President,

Ronald Venetiaan, to MUSA begun in 1993 in the form of a

concession to develop a man-made rain forest with an area of 150

ha in West Suriname. That concession included giving Imoek

permission to export unprocessed wood from Suriname with very low

fiscal costs.

 

What concession is illegal since it violates the 1992 Forestry

Laws paragraph 27 which regulates that the granting of concessions

in the area of 150.000 ha can only be given to integrated timber

firms. While at the time of being granted the concession, MUSA did

not even have sawmilling facilities to process timber into plywood

or other processed wood products.

 

The Chairman of Forestry Council of Suriname, Kenneth Tjon even

expressed his surprise with the sudden granting of concession. The

concession was given in a very short time and under misterious

circumstances. I even knew about it from the newspaper, he said as

quoted by Time August 1, 1994 edition.

 

Plywood factory

At the end of 1993 the Berjaya Malaysia company, owned by

conglomerate Vincent Tan and Ahmad Rithaudeen former Malaysian

Defense Minister, followed the footsteps of MUSA in negotiating to

get a concession of one million hectares by offering an investment

of US$200 million, including building a plywood  processing

factory and a five star hotel. Other companies from Indonesia,

Suri-Atlantik, owned by PT Gudang Garam and PT Antang Permai

Plywood also invested capitals in Suriname. Berjaya intends to

process wood products into plywood. While the main target of MUSA

and Suri-Atlantik was to gain two million hectares of forest for

supplying the need for raw wood materials to produce plywood and

paper pulp.

 

* Lukas Luwarso & Meirizal Zulkarnain

Bambang Ryadi Soetrisno

 

###RELAYED TEXT ENDS###

You are encouraged to utilize this information for personal

campaign use; including writing letters, organizing campaigns and

forwarding.  All efforts are made to provide accurate, timely

pieces; though ultimate responsibility for verifying all

information rests with the reader.  Check out our Gaia Forest

Archives at URL=   http://gaia1.ies.wisc.edu/research/pngfores/

 

Networked by:

Ecological Enterprises/  301K Eagle Heights/  Madison, WI  53705 

USA/ Phone- (608) 233-2194/  Fax- (608) 233-2193/  Emails-

gbarry@forests.org or switpi@igc.apc.org