Report: APP clearcuts forest in Senepis and Kerumutan blocks, PT SRT in Giam Siak Kecil

Investigative Report Analysis June 2006   

Giam Siak Kecil Block (B2007, Map 1)    Eyes on the Forest (EoF) Investigation in June 2006 inside Giam Siak Kecil forest block (B2007, Map 1) has found 1,400 cubic meter natural forest logs had been clearcut illegally by a group led by businessman Rmd. On July 1, EoF observed logging activities carried out without holding any license by Rmd and followed the wood from the logging sites until the receipt by plywood industry of PT Siak Raya Timber.    

Based upon EoF’s investigation, natural timbers clearcut by Rmd group is conducted illegally (illegal logging) due to it allegedly has no permit from the authorities. The group clearcut logs which have diameter more than 30 cm (log) inside the forest block. The illegal logging committed by 25 members of group Rmd inside Giam Siak Kecil forest block has been running over 7 months. 

• PT Siak Raya Timber plywood mill, which based on license number 425/I/INDUSTRI/1998, dated 3 September 1998, has production capacity approximately 120,000 m3 per annum and required materials around 240,000 m3 per year. Previously plywood factory PT Siak Raya Timber obtained supply for materials also from its logging concession (HPH or IUPHHK-HA) located inside Tesso Nilo forest block.     Rmd group should not have started the operation in this concession and should therefore immediately stop its logging activities.

PT Siak Raya Timber should stop sourcing timber from such activities until it has license from the authority.     In addition to the legal review by the MoF, President of Indonesia through a Presidential Decree (Inpres No. 4/2005 about Combating Illegal Logging and its Distribution in All Area in Indonesia issued on 18 March 2005) and Riau Governor’s decree (No Kpts.472/X/2005 issued on 21 October 2005 about forming Curbing Illegal Logging Team to support the implementation of Presidential Decree in Riau Province) calls to examine operation licenses relating to timber forest concession and further cancellation of the licenses if they have been issued and do not comply with existing laws.    

The logging site conducted by Rmd group overlaps with the following area, thus violate existing law:

• Natural forests which was still in good condition, as shown by Landsat Image for the area in 2005. Forestry Minister Decree Number 10/2000 in connection with 21/2001 stipulates that Timber Plantation Concession License (IUPHHK-HT) should not be granted for operation in natural forest, but should only be granted in barren land, grassland or bushes in production forest and that the area should not have vegetation of more than 10cm diameter trees for all kinds of species with potential timber density less than 5 m3 per hectare or number of sub-species of dominant species less than 200 trees per hectare.                                                                         

PT Siak Raya Timber has purchased the timber from this forest block and therefore has violated Forestry Law No. 41/1999 article 50 clause (3) point (f) in conjunction with article 78 clause (4) which prohibit anybody to receive, buy or sell, receive as an exchange, receive as an entrusted goods, keep or possess any forest products which were allegedly harvested from a forest area through an illegal way. 

Rmd should respect the existing laws in Indonesia and stop the forest clearance in these concessions immediately. EoF also calls on PT. Siak Raya Timber to immediately stop sourcing wood originating from such operations.   

Eyes on the Forest (EoF) Investigation in June 2006 in Senepis forest block has found that natural forest had already been clearcut inside Timber Plantation Concession of PT Ruas Utama Jaya (B1006 Map 2; B1006 (1) Map 3; and B1006 (2) Map 4). 

EoF observed logging activities by PT Ruas Utama Jaya and then followed the wood from the logging sites until the receipt by PT. Indah Kiat Pulp & Paper (PT IKPP) mill, a company belonging to Asia Pulp & Paper (APP).   

EoF’s chain of custody investigation has successfully traced two pontoons named  Sinar Abadi 17 and Sinar Abadi 19 –that pulled by tug boat KM Bintang Sejahtera—carried scores of trucks loading natural timber from log stockpiling station (TPK) or log pond of PT Ruas Utama Jaya in Tanah Putih village. The pilings of natural log were taken to a jetty in Ujung Tanjung by trucks with plate number of B 8627 LF and BM 8741 AU and BM 8907 FD toward PT IKPP pulp mill.      

Based on EoF’s investigation, the concession granted to PT Ruas Utama Jaya is issued by tentative decree of Ministry of Forestry through Letter of Ministry of Forestry and Plantation number 1179/Menhutbun-VI/99 dated 19 August 1999. 

• The HTI license belongs to PT Ruas Utama Jaya is not a definitive decree issued by MoF, but it is merely an approval to proposal called “principal approval.” The area size of the concession where logging is happening is 40,000 hectares.

• The definitive decree of HTI license will be granted by the Ministry if the company has conducted several activities as stipulated on article 14 of Ministry of Forestry’s Decree Number 312/Kpts-II/1999 on Procedure to Granting Selective Logging Concession through Proposal.  

PT Ruas Utama Jaya should not have started the operation in this concession and should therefore immediately stop its logging activities.

PT. IKPP should stop sourcing timber from such activities until definitively legal license is issued by the MoF.   

In addition to the legal review by the MoF, President of Indonesia through a Presidential Decree (Inpres No. 4/2005 about Combating Illegal Logging and its Distribution in All Area in Indonesia issued on 18 March 2005) and Riau Governor’s decree (No Kpts.472/X/2005 issued on 21 October 2005 about forming Curbing Illegal Logging Team to support the implementation of Presidential Decree in Riau Province) order to examine operation licenses relating to timber forest concession and further cancellation of the licenses if they have been issued and do not comply with existing laws.    

The concession PT Ruas Utama Jaya overlaps with the following areas, thus violate some existing laws:

• Natural forests which was still in good condition, as shown by Landsat Image for the area in 2005. Forestry Minister Decree Number 10/2000 in connection with Decree Number 21/2001 stipulates that Timber Plantation Concession License (IUPHHK-HT) should not be granted for operation in natural forest, but should only be granted in barren land, grassland or bushes in production forest and that the area should not have vegetation of more than 10cm diameter trees for all kinds of species with potential timber density less than 5 m3 per hectare or number of sub-species of dominant species less than 200 trees per hectare.