JAKARTA, Jan 15 — Indonesia's military-backed forestry task force has threatened legal action against dozens of plantation and mining companies that refuse to pay hefty fines for operations in forest areas deemed illegal.
In an Instagram post, it said that Goodhope Group, part of Sri Lankan conglomerate Carson Cumberbatch CARS.CM, and Singapore-based Musim Mas Group were among the companies that did not attend when summoned.
The unprecedented crackdown since last year targeting oil palm plantations and mines has unnerved the industry, buoying global palm prices amid fears it will hit output, and, more recently, triggering rallies in 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," said spokesman Barita Simanjuntak.
In a statement today, the task force said it 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 plantations across 4.1 million hectares (10.1 million acres), or roughly the size of the Netherlands.
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.
Seven mining and 54 palm oil companies have paid or agreed to pay fines of 9.3 trillion rupiah (RM2.23 billion).
Companies that complied include the palm oil units of conglomerate Salim Group IFAR.SI, which paid fines equivalent to US$136 million (RM551 million); Best Agro Group, which forked over US$98 million (RM397.1 million) in fines; and US$57 million (RM230.9 million) by a unit of Sampoerna Agro SGRO.JK.
Astra Agro Lestari AALI.JK also paid a US$34 million fine (RM137.7 million). Goodhope and Musim Mas face fines of US$107 million (RM433.5 million) and US$20 million (RM81.04 million), respectively.
The companies did not immediately respond to requests for comment.
Last year, Attorney General Sanitiar Burhanuddin, one of the task force's leaders, said that the authorities have assessed potential fines of 109.6 trillion rupiah (RM26.2 billion) for palm oil companies and 32.63 trillion rupiah (RM7.82 billion) for mining companies, for operations in forest areas.
