JAKARTA, Jan 15 (Reuters) – Indonesia’s military-backed forestry task force has threatened legal action against dozens of plantation and mining companies refusing to pay hefty fines for operations in forest areas that authorities deem illegal.
The unprecendented crackdown since last year targeting oil palm plantations and mines has unnerved the industry, buoying global palm prices for fear it will hit output, and more recently, triggering rallies in the prices of metals like tin.
“For companies that still object, those that fail to appear for summons or continue unauthorised activities in forest areas, the task force will take more progressive legal action to ensure the state’s sovereignty,” spokesperson Barita Simanjuntak said.
The task force has taken over 8,800 hectares (21,800 acres) of mining areas turning out items such as nickel, coal, quartz sand and limestone, and palm planations across 4.1 million hectares (10.1 million acres), or roughly the size of the Netherlands, it said in Wednesday’s statement.
As many as 25 of the 32 mine companies and 29 of the 83 plantation firms summoned to pay fines have objected, failed to attend or sought rescheduling, it said, without identifying the companies.
Seven mining and 54 palm oil companies have paid or agreed to pay fines of 9.3 trillion rupiah ($552 million), the task force added.
Authorities have assessed potential fines of 109.6 trillion rupiah for palm oil companies and 32.63 trillion rupiah for mining companies, for operations in forest areas, Attorney General Sanitiar Burhanuddin, one of the leaders of the task force set up by President Prabowo Subianto, said last year.
($1=16,855.0000 rupiah)
(Reporting by Gayatri Suroyo; Editing by Clarence Fernandez)
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