National

Concession permit abuse
causes Rp 939b financial
loss to RI: ICW

Indonesia Corruption Watch (ICW) has alleged that PT Riau Andalan Pulp and Paper (RAPP) committed an abuse of forest concession permits in Riau Province which caused Rp 939.29 billion (US$96.5 million) worth of financial loss to the state.

“The data was taken from the courts’ verdicts on forest concession permit-related corruption cases,” said Tama S.Langkun of the ICW on Tuesday as quoted by Antara news agency.

He said most of the losses were related to concession permits obtained by PT RAPP, although similar permit abuses were also found in 16 other companies.

They included PT Merbau Pelalawan Lestari, which had caused an estimated financial loss of Rp 7.68 billion; PT Selaras Abadi Utama Rp 6.99 billion; PT Uniseraya Rp 13.03 billion; CV Putri Lindung Bulan Rp 54.48 billion; CV Tuah Negeri Rp 4.63 billion; and many more.

With such high financial losses, Tama said that the Corruption Eradication Commission (KPK) should immediately put articles on corporation requirements into effect to bring companies allegedly involved in abuse of logging permits to justice.

“Such an effort is very important to give punishment with a deterrent effect to forestry companies that continue to expand their plantations illegally,” said Tama.(asw/ebf)

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