Illegal Logging Under Pretext of the Company

Illegal Logging under Pretext of the Community

SVLK Monitoring in North Maluku

“Business license has expired, timber legality certificate also has expired, but still logging in the forest.” Adlun Fikri, a monitor from Central Halmahera, North Maluku (December 2020).

North Maluku is a central of biodiversity in Indonesia. According to the data from World Bank, this region has 26 species of endemic birds, eleven endemic mammals, nine endemic amphibian and reptiles, and more than 100 species of endemic land snail. More that 70 % of these endemic animals depends on forest. So, the sustainability of various bio diversities is closely related to how the living space in the forest is preserved. The increasing of deforestation in Indonesia gives impact to forest and biodiversity, one of the example is the change of the designation of an area from previously forest to plantation. In transition phase, there is land clearing activity by massive logging and the timber is ‘utilized’ to be processed and traded so that the timber as a forestry product is also applied timber legality in the form of SVLK.

The largest and most intact forest coverage in North Maluku are Aketajawe and Lolobata National Park in Halmahera. Besides having a shady and natural trees, these National Parks are important areas in the protection of endemic birds. There are at least 24 from 26 species of Indonesian endemic birds are in these areas. And the most important thing, there are eight bird species and some of which are threatened or vulnerable to extinction. Legal disciplinary measures for timber and forestry business actors through SVLK related to all of these. These National Parks, like it or not is a source of wood. And with all limitations it allows the timber is being exploited from these National Park areas. So, SVLK’s concern doesn’t only focus on tracing the origin of the timber, but also how is the impact of the biodiversity from the original forest? Moreover, forest that is legally not allowed to utilize the timber. Even, a friend said that we are not allowed to pull grass in national park area. If any animal or plant dies, let it decomposes naturally.

In the next story, we will share the experiences of SVLK monitoring in Halmahera that is carried out by the community related and concerning forest land which is transitioning to plantations area through a timber utilization permit. Moreover, we also will talk about how the sawmill industries process timber that is suspected to have come from forest conservation area. We found that SVLK helps to see not on which the subject is doing illegal logging, but how does the subject do logging on which forest object. The monitoring of suspected illegal logging which is carried out by indigenous people in Halmahera focuses on two business unit of timber utilization, they are Tonidora farmer group and CV Sula Baru, and two business unit of sawmill business, they are PT Mahakarya Hutan Indonesia and UD Ketapang. The stories of the monitoring result of Halmahera indigenous people North Maluku consist of 4 stories.

First Story: Tonidora Farmer Group

In this part, we would like to tell about a farmer group which received timber utilization permit that is suspected of logging when the permit has expired and carried out the logging not in the permit area. The farmer group name is Tonidora.

Tonidora is permit holder of Timber Utilization (IPK) in Other Land Uses (APL) in Fritu village, North Weda sub-district, Central Halmahera district, North Maluku, based on the Decree of the Head of Forestry Service of North Maluku province Number: 522.1/ Kpts/26/2019 on 8 February 2019 which is valid for a year. The area of IPK is 1,000 ha. Tonidora has started to log since December 2018 until now. This group received Timber Legality Certificate (S- LK) since May 2019, but it was frozen on 30 January 2020. Based on the information of LVLK PT Equality in December 2020, Tonidora has submitted S-LK again. However, because they have not fulfilled all the requirements, PT Equality as the verification body has not carried out an assessment.

Tonidora is suspected of illegal logging outside IPK area and collected the timber in timber shelter (TPK) in the forest. The location of logging outside the IPK area is in the state forest. Based on the survey in April 2019, from the coordinate which we got, Tonidora has crossed about 0.7 kilometers to the state forest area with production forest status which is convertible (HPK). Meanwhile, the monitoring result in November until December 2020, the logging location as far as 2.2 kilometers outside IPK-APL area of Tonidora. Based on our observations in January 2021, the timber from illegal logging until this report made is still in Forest TPK of Tonidora. The monitor from the community suspected that the illegal logging timber will be sold or will be circulated to the sawmill industries after the submission process of SVLK to PT Equality has been successful. Based on our communication with PT Equality, they have not carried out an assessment because there are still any requirements that have not been met. In the previous period, specifically in the end of 2008, Tonidora has brought many heavy equipments from such contractor in log pond location or log shelter in Sarono hamlet, Fritu village. The logging contractors used by Tonidora are PT Putra Djaya Makmur and PT Sazad Abadi Perkasa. Felled wood around 6,000 m3 is sent to some companies in Surabaya and Gresik East Java, through the port of Tanjung Perak Surabaya.

In order to support the logging activity, Tonidora and the contractors do road opening to the logging location. In the mid of February 2019, a number of indigenous people from Fritu and Sagea villages protested the company after they knew that their plantations with nutmeg plant are evicted for road opening activity and logging activity. Until now, the community hasn’t received compensation yet. Furthermore, a number of indigenous people and traditional figures in Fritu also concerned about their names and their signatures which are taken in the document of farmer group establishment in 2017. Arkipus Kore, a public figure of Fritu, claimed to have reported the falsification case to Halmahera Police office on 5 February 2019, but there is not any responses.

Based on the information from Arkipus Kore, one of public figures in Fritu village, IPK Tonidora has ended in February 2020, then they are given other extension by Forestry Office of Halmahera province for transporting the rest of the felled wood until August 2020. However, this permit renewal is not yet found by the monitor. Moreover, the logging contractor which is temporarily operating by using IPK-APL is no longer under someone with the initials UL. Based on information of some communities, UL is an old actor in timber business in Halmahera. He is a logging contractor for some APK in Halmahera, one of them is PT Mohtra Agung Persada, Dote village East Weda sub-district as far as 2.2 kilometers from Tonidora IPK area. An independent monitor on 14 January 2021 reported a suspected illegal logging by Tonidora to Gakkum the Ministry of Forestry and Environment. On 24 March 2021, Gakkum has responded the report and the monitor is still waiting the follow-up from Gakkum until now.

Picture 7. Hundreds of log of various types are collected in the log pond of Tonidora farmer group in Fritu village, Central Halmahera (3 Dec 2020)

Picture 8. Alleged map in logging location outside IPK area of Tonidora farmer group (Survey 8 Desc 2020)

Picture 9. Timber Circulation Chain from IPK of Tonidora farmer group

Second Story: CV Sula Baru

CV Sula Baru (hereinafter referred to as Sula Baru) is a permit holder of timber utilization (IPK) of Other Land Uses (APL) on the land of 4 farmer groups in Auponhia village. The IPK area is 1,000 ha. The IPK land contains Red Meranti wood, White Meranti wood, Matoa wood, and Palapi wood. Those woods are felled down by Sula Baru and sent to some companies in Surabaya. Meanwhile, the 1,000 ha land is planned to plant Cloves and Nutmeg by the farmer groups. Sula Baru is S-LK holder from LVLK PT Lambodja Certification. However, on 27 January 2021, the certificate of Sula Baru was declared frozen by the LVLK because did not respond to their surveillance notice. The freezing information is obtained by the monitor after PPLH Mangkubumi sent a letter to LVLK PT Lambodja to ask information related to the timber circulation of Sula Baru.

Based on the information from the community of Auponhia village through the head of the farmer group, Sula Baru is suspected of logging outside IPK concession in APL by intruding into the production forest which is claimed by the community Auponhia village as communal land in the form of village forest. In the investigation of a monitor in the field, it is found processed timber in the form of boards and blocks in IPK concession area. The monitor got information that the timber is allegedly belong to a military member which is being commercialized in Sanana island. In the implementation of K3, the monitors found that the workers Of Sula Baru do not use safety equipment which it doesn’t fit with the norm in SVLK assessment. As long as Sula Baru operates, it is recorded that there have been twice work accidents. Furthermore, there is an allegation of land grabbing by Sula Baru by logging in public land that is owned by Auponhia village. The land status is production forest. The permit of IPK is valid for a year which means that on 30 December 2020 is the last day of IPK permit owned by Sula Baru. Based on the monitoring in the field on 30 December 2020, Sula Baru was still transporting the timber from logging location to TPn (the shelter) of Sula Baru.

Based on the monitoring in the field and an analysis towards the related law and regulations, so it can be concluded that there is a disobedience of IPK permit holder of Sula Baru in the management of Sustainable Production Forest (PHPL) and the rights of local indigenous people according to the principles FPIC (Free, Prior and Informed Consent). On the result of the monitoring investigation which found illegal logging case by Sula Baru outside concession area, so it has been sent a complain letter to LVLK Lambodja Sertifikasi with the substance recommends LVLK to immediately conduct a special audit to explore the origin of the timber produced by Sula Baru. LVLK has frozen S-LK of Sula Baru and the IPK permit has been revoked.

Picture 10. Timber Circulation which is alleged illegal in CV. Sula Baru

Picture 11. Coordinate point in the logging location of CV Sula Baru (Dec 2020)

Third Story: PT Mahakarya Hutan Indonesia

PT Mahakarya Hutan Indonesia (hereinafter referred to as MHI) is a sawmill company or IUIPHHK holder located in Teluk Miahing, Kakaraino village, East Halmahera District, North Maluku. MHI or previously named Mahakarya Agra Pesona is two permits holder company, they are IUIPHHK (primary industry) the capacity of 5.900 m3/year and the details are sawn timber of 5.000 m3/year and wood chips of 900 m3/year and IUPHHK-HA (concession permit) which the area is around 36.860 Ha. It is located in East Halmahera district and the the permit validity period is 45 years starting from 10 March 2017. The two permits owned by MHI have been verified the timber legality by LVLK PT Borneo Wanajaya Indonesia where is the validity period is 25 July 2020 until 24 July 2021. This monitoring is focused on log timber processing industry (IUIPHHK) owned by MHI.

Based on the information from the local community, MHI does not only process log timber in the industry location, but there is also sawing activity and wood sales in the area of kilometers 1 and 2. It is suspected that the processed timber is from kilometers 1 and without timber document in the form of SKSHHK and travel document. Moreover, directly the volume of the processed timber is not recorded in the productions result so that the production record is smaller than the logging. Because of this, the country is harmed because the Government doesn’t receive fees and standing replacement value.

According to the Field Manager of MHI, initials P, the company has made 2 sales of sawn timber. They sell it to UD Boyolali in Ternate city. The time of the sales is unknown. From the worker’s confession in the sawmill industry, since he worked in the beginning of February 2020 until the operational is temporarily stopped by the company in August 2020, there is not any timber comes out for sales activity.

Related to employment and K3 (it is found a discrepancy between the field condition and what it is written in the S-LK document audit and the suspiciousness of other violation indications: (1). There are no evacuation route signs; (2). There are no warning banners of work safety, such as advices on the use of personal protective equipment (APD) for the workers is not complete and not all the workers use APD.

Based on the findings of the field monitoring above, we conduct some analyses as follows: First, the monitor found processed timber pile in the logpond of PT MHI’s concession area, where a logpond should be used for hoarding logs. While the processed timber should be in the primary industri of PT MHI. On the findings, the monitor is still investigating until now. As the follow-up, until this report made, the monitor has compiled a complain letter to LVLK PT Borneo Wanajaya Indonesia. Second, as the company of two timber forest product utilization business permits holder (IUPHHKHA & IUIPHHK), PT Mahakarya Agra Pesona or PT Mahakarya Hutan Indonesia takes advantage of this opportunity by producing sawn timber outside the industry area (kilometers 1 & 2). The production timber in kilometers 1 & 2 is allegedly not included in the production record.

Therefore, the volume of logs supplied to the processing industry is estimated more than recorded in the transfer/sales report of PT Mahakarya Agra Pesona/PT MHI. Moreover, the company is suspected of cheating in the number of logs supply, the production record, and the sales. Critical note from PPLH Mangkubumi all at

once as the future lesson learned, the monitoring will not be effective if carries out monitoring in two point of timber transfer or only in the two parties transacting. In the two point or the two parties, it will not reflect the practice of legal timber administration as required in SVLK. Based on the monitoring experiences of PPLH Mangkubumi, the critical point from timber administration is outside that two point or those parties, either the previous point or the next point. At those critical points, illegal logging practice or illegal trading might be found. PPLH Mangkubumi with the monitors have compiled a complain report to certification body named PT Borneo Wanajaya Indonesia.

Picture 12. Timber Circulation of PT Mahakarya Hutan Indonesia

Picture 13. Pile of logs and Sawn Timber in kilometer 1 and 2 of PT MHI

Fourth Story: UD Ketapang

UD Ketapang is an IUIPHHK holder or a primary industry with the capacity of 5,000 m3/year, located in Woda village Woda sub-district, the City of Tidore Kepulauan, North Maluku. This UD is owned by initials MU with the investigation value of IDR < 500 million. PT Mutuagung Lestari (MAL) as the certification body has carried out the audit of SVLK and then issued Timber Legality Certificate (S-LK) to the UD Ketapang No: LVLK-oo3/MUTU/LK-656 and the certificate is valid from 04 November 2019 until 03 November 2025. However, in December 2020, S-LK of UD Ketapang has been revoked by LVLK PT MAL because they do not response the notification letter for a surveillance. The monitor got the revocation information when this report is being compiled.

The information from the community of Woda village, that occurs illegal logging in Aketajawe Lolobata National Park and the timber is supposed to be shipped to UD Ketapang in early of 2020. Based on the investigation result of the Independent Monitor, it has been found the tree stumps of Red Jabon (Anthocephalus macrophyllus) or in local is called Teak (Tectona grandis). Then, the monitor carried out investigation by disguising as the timber buyer. The monitor used a cover-story as a timber buyer in UD Ketapang. The monitor got information from the owner of UD Ketapang that the timber with certain size has been sent to wood trader in the city of Ternate. The monitor continued the investigation to the city of Ternate which is connected as the timber buyer of Red Jabon from UD Ketapang. It has been confirmed that the wood trader in Ternate bought wood from UD Ketapang. The initial conclusion from this monitoring in November 2020, that illegal logging has been taken place in Aketajawe Lolobata National Park area with the timber type is Red Jabon and Teak which is accommodated by UD Ketapang. PPLH Mangkubumi has made a communication with Law Enforcement Officers on suspicion of illegal logging in Aketajawe Lolobata National Park with the evidence of findings of tree stumps and the information from the local community. Law Enforecement Officials are having difficulty finding evidence because the case has occurred long time ago and it is not happening anymore now.

Picture 14. Timber Circulation of IUIPHHK of UD Ketapang

Picture 15. Wood Trade Location in the city of Kota Ternate sourced from from UD Ketapang

Picture 16. Alleged location of former illegal logging in Agetajawe Lolobata National Park