Clean forestry governance require President’s commitment

Wednesday, January 4, 2017

Jakarta, 25 February 2016. The Partnership, together with civil society organizations, e.g. Indonesia Corruption Watch (ICW), World Wildlife Fund (WWF), Yayasan Auriga, Walhi, etc held a Press Conference on Tuesday, 25 February at FX Sudirman to support the implementation of government’s action plan on reforming its non-tax state revenue (PNBP) system in the forestry sector.

The national plan is laid out in a draft by the Corruption Eradication Commission (KPK) and other related government institutions including the Finance Ministry, the Environment and Forestry Ministry and the Supreme Audit Agency (BPK). The plan is a follow-up on a KPK study published in October 2015, which found that state losses from missing potential non-tax state revenue in the forestry sector between 2003 and 2014 amounted Rp 86.9 trillion (US$521 million), or Rp 7.24 trillion per year.

Environment and forest protection is incorporated in the President Jokowi’s Nine Priorities Agenda (Nawa Cita). The President, therefore should ensure that these recommendations are implemented by relevant ministries and departments, and enforcement is needed for optimal and effective implementation.

The relevant government ministries and departments will have to report on the implementation of the action plans to the President and the public, while the role of KPK is to thoroughly monitor and evaluate through documents checking and field inspection.  The KPK has the authority to send a letter to the President and BPK as a follow up of their findings.

Ineffective law enforcement, inaccurate production data and auditing by timber plantations, a lack of transparency on royalties data within government ministries and poor coordination between central and regional administrations are cited as the causes for the lost timber revenue.

The action plans stipulates that there should be an online non-tax state revenue system connected to the Finance Ministry, appropriate audit at national level and in the 8 provinces which have a high potential for non-tax state revenue, an effective and coordinated law enforcement model which could reduce corruption and money laundering in the crimes related to forestry sector, and review and transparencies on royalties data.