NATIONAL ECONOMIC LOSSES DUE TO FOREIGN PRACTICES WERE INSIGNIFICANT

The Indonesian Chamber of Commerce and Industry (KADIN Indonesia) believed that national economic losses due to foreign corporate practices were not so significant. On the contrary, KADIN believed that there was an increasing number of politi­cians who issue statements not based on well-ana­lyzed data. “Data which has first been analyzed could determine its development for the short, medium, and long terms”, Deputy General Chairman of KADIN In­donesia China Committee (KIKT), Adi Harsono, told Business News (1/29).

KIKT and KADIN Indonesia did not have suf­ficient data, so the data system must be improved. A good expert always issues statement after analyz­ing data. “There are many politicians who play with words”.

There is a statement saying that “government ‘must’ import beef” without analyzing the matter comprehensively. In fact, there are many cattle farms which face delivery problem. For instance, live cattle delivery from East Java to Surabaya by truck. It takes two hours. Cattle could suffer from stress or could die. While, the highest rate of beef consumption is in Jakarta. The journey from East Java to Jakarta could take tens of hours. So, what is needed is transporta­tion by train. This is an example, as the word “must” in the above sentence is related to live cattle delivery without understanding the core of the problem.

KIKT also emphasized the need for simplifi­cation of regulations so that Indonesian corporations could dominate the export market. For instance, fu­ture trading on Crude Palm Oil (CPO) which price is determined in Malaysia. There are many corporations who wanted to establish an institution like the one in Malaysia.  But, there are many regulations that restrict them. The House of Representatives made too many regulations.

A renowned lawyer, O.C. Kaligis sees that In­donesia loses 28 million hectare forests in the past 15 years. This is due to ignorance of natural resourc­es. Kalimantan in the 1970s was greener than now. “This statement is based on work papers. I defend reforestation, punish illegal loggers within the context of Indonesian law, and give a welcome speech for dissertation”, O.C. Kaligis told Business News (1/29).

The fact is that illegal logging occurred and smuggling to other countries, like Malaysia and Sin­gapore, has been known by everybody. The society did not know about decline in GDP and per capita income. “I wrote this fact based on analyzed data and scientific analysis. If the press says that ‘Kaligis has issued a false statement’ just write it. I deliver a wel­come speech for the dissertation of a Doctor in Legal Sciences concerning illegal logging, Zarof Ricer”.

Within the context of legal protection, there is a disparity in criminal punishment on illegal logging in the ruling of court in Indonesia. In law enforcement, the government and legal institutions should be able to reduce criminal punishment disparity in court ruling on illegal logging. Indonesia has a regulation on envi­ronmental management, namely Law No. 23/1997 on Environmental Management. But, this law has been amended by Law No. 32/2009 on Environmental Pro­tection and Management. Indonesia has a total size of 112.3 million hectares of forests consisting of 29.3 million hectare protected forests, 19 million hectare conservation forest, and 64 million hectare produc­tion forest. When the natural forest outside Java was managed under Forest Concession (HPH) since 1967, forestry sector has an important role in supporting national economy. In the past 10 years, contribution of timber industry to foreign exchange revenue is averagely 20 percent. In 1998/1999, target of foreign exchange revenue from timber industry is at USD 8.5 billion. Deforestation rate in Indonesia is the highest in the world.

In  1995-1997, deforestation rate reaches 1.6 million hectare/year, in 1997-2001 2.1 million hectare/year. Data of the Forestry Ministry of June 2010 recorded that deforestation is mainly caused by forest clearance (60 percent), conservation (22 percent), and main road uses (16 percent).

Business News - January 30,2013