Irregularities in Prajogo’s Other Companies
The case of PT Musi Hutan Persada is just one of many believed to snare timber baron Prajogo Pangestu into the noose of the law. Second only to Bob Hasan, he owns dozens of companies holding forest concessions (HPH) and concessions for timber estates (HTI). After tracking down these cases, an investigation team of the Forestry Ministry disclosed that these companies are fraught with irregularities, inflicting losses on the state of over Rp505 billion. Some of the companies are as follows:
June 12, 2001
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HPH Irregularities
1. PT Industries et Forest Asiatiques (IFA)
Operational location: Riau and Jambi
Area: 248,100 ha
- Operating only by virtue of a temporary permit, namely Forestry Ministry Letter No. 608/Menhut/IV/93, valid for two years only.
- Forestry audit not valid, having been conducted by a company in the same group, not by independent auditors.
- Annual logging target incompatible with survey of a forest’s real potential.
- Logging not compatible