Timber Legality and Indigenous People Rights

Timber Legality and Indigenous People Rights

SVLK Monitoring in West Papua

“Indigenous people community has lost their land and natural resources as the impact of granting permits over the forest without knowing by the community. This monitoring will support the community to prove that the SVLK implementation by the permit holder uses a lot of illegal methods for the timber management so that the management rights can be returned to the community.” PIETER, an Independent Monitor from Moskona indigenous people of Teluk Bintuni West Papua (19 January 2021)

Illegal logging is logs harvesting which is in contrary to the law and formal rules. What is called legal in formal regulations is often considered not legal according to indigenous people. Vise versa, what becomes the daily living practices are sometimes considered illegal by the Government. In Papua, where the practice of a massive illegal logging of tropical forest is rampant for timber interest and the change of land use, gives direct impact to the local indigenous people’s survival. There are also different perspectives on what is legal and illegal between the government, business actors, and indigenous people. What is Mr. Pieter said is an example of a case how does the legal definition of timber relate to legal definition of land. Legal according to whom and for what benefit? That’s the question.

Some of these things have actually been accommodated in regulations on timber legality. But still not considered enough because of the complex regulations in the implementation in the field. In addition, the legal definition in the sense of traceability of origin timber or chain of custody is not ignored in transactions of the seller and the buyer, as long as the timber documents have been completed. So, since the 2000’s, the idea emerged to entrust the traceability of wood-to-wood DNA testing (deoxyribonucleic acid). This test is scientifically and authentically able to speak about the true origin of wood, beyond document legality. However, this process requires technology, costs, time and human competence to do it. To go beyond document legality and traceability with DNA wood, why don’t we rely on knowledge of indigenous people/local communities who have a direct interest in forest sustainability? In this case, the

Timber Legality Verification System (SVLK) monitoring carried out by indigenous people/local community in West Papua which we will tell about is a form of effort to dispel the forest destruction.

We would tell the monitoring carried out by indigenous people/ local communities in West Papua in four forestry business units, namely CV Alco Timber Irian, PT Uniraya Timber, PT Kharisma Chandra Kencana, and PT Rimba Kayu Arthamas. Except Lastly, the forestry business unit is a sawmill industry or primary industry business license holder of Timber Forest Product Processing or often abbreviated as Timber Forest Products Primary Industry Business License (IUIPHHK). Meanwhile, PT Rimba Kayu Arthamas is a concession timber company or the holder of Forest Timber Product Utilization Business Permits of Natural Forest or often abbreviated as IUPHHK-HA. In general, the four business units have obtained Legality Certificate (LK) and Sustainable Production Forest Management (PHPL), but we found indications of problems traceability of the timber and suspected illegal logging. Let’s discuss these companies one by one.

CV Alco Timber Irian

CV Alco Timber Irian (hereinafter referred as Alco Timber) which located in Kampung Bumi Ajo, Moswaren District, South Sorong, West Papua Province. This CV is part of Alco Timber Group. The status of the permission that is in that location is Forest Timber Product Processing Primary Industry Business License (IUIPHHK) with Decree Number (SK): 570/1127/DTSI/XI/2017 which published on November 28, 2017 by the Ministry of Environment and Forestry. Alco Timber has a production capacity of under 6,000 M3 per year. In the process of using wood, Alco Timber has obtained Timber Legality Certificate (S-LK) by Timber Legality Verification Agency (LVLK) of PT PCU Indonesia in August 2018. The owner of this company is HBS aka Ming Ho who also the owner of the Alco Timber Group. But in 2019, This company has had its S-LK revoked. Even though the S-LK has been revoked.

Alco Timber is suspected still receiving supplies of timber raw materials. In the report on the Plan for Fulfillment of Industrial Raw Materials (RPBBI) in 2019, Alco Timber Unit Moswaren got raw materials resources for wood from Timber Utilization Permit (IPK) of CV Alco Timber for 733.47 M3, and also got raw materials from CV Sorong Timber Irian for 1,994.20 M3. Monitors got the information in East Java from the communities who work at Alco Timber, that Alco Timber sends processed timber to PT Surabaya Trading & Co in East Java.

After doing some related desk researches, it was discovered that Alco Timber has a bad record in making use of wood. This was proven by the arrest of the owner of Alco Timber Group HBS aka Ming Ho conducted by Law enforcement (Gakkum) of the Ministry of Environment and Forestry in 2019. The arrest process is the result of the development of the case for the capture of Merbau wood evidence by Law enforcement (Gakkum) of the Ministry of Environment and Forestry in 2018. Evidence secured are 81 containers containing 1,680 m3 of illegal Merbau wood species sent by IUIPHHK CV Alco Timber Irian and CV Sorong Timber Irian. The two companies are part of the Alco Timber Group.

After undergoing trial, Ming Ho was sentenced to imprisonment for 5 years and a fine of IDR 2.5 billions. The punishment lower than the prosecutor’s request, which was originally 9 years in prison and a fine of IDR. 20 billions. The Sorong District Court declared Ming Ho is guilty for committing a crime by knowingly accepting forest products known to have originated from illegal and deliberate logging distribute timber from illegal logging through the waters (Decision No. 134/Pid.Sus/LH/2019/PN Son). He is considered guilty of having violates Article 95 Paragraph (1) letter a and Article 86 Paragraph (1) letter a Law Number 18 of 2013 concerning Prevention and Eradication of Forest Destruction (UU P3H). July 2020, Ming Ho made an appeal to the Supreme Court. The Supreme Court decided that the defendant on behalf of Ming Ho was sentenced 2 years imprisonment and a fine of IDR 2.5 billion. Furthermore, the Supreme Court also ordered wooden evidence returned to the defendant.

Taking into account the history of the owner of the Alco Timber Group who has been found guilty of distributing illegal timber, then the monitor carried out monitoring on one of the companies that joined in the group, namely IUIPHHK CV Alco Timber Irian Moswaren unit. From field monitoring, facts have been found as follows: First, IUIPHHK CV Alco Timber Irian Unit Moswaren does not record timber production from log timber to processed wood in any sawing activities or in other words, there is no Log Mutation Report (LMKB). Second, does not record the production report of the processed wood. So it is suspected that CV Alco Timber Irian Unit Moswaren did not prepare a Report on Mutation of Processed Timber Forest Products. Third, indicated to produce processed wood which is exceeding the required capacity allowed. This is as conveyed by CV workers of Alco Timber Irian Unit Moswaren that if the conditions are good every a day there are 10-12 trucks of Merbau logs come into the industrial sawmill. If on average one truck loads 5 m3 of logs, then every day the average CV Alco Timber Irian Moswaren unit accommodates 50 m3 round wood. So, in one month the average CV of Alco Timber Irian The Moswaren unit accommodates 1,250 m3 of merbau logs. In one year finally, CV Alco Timber Irian Unit Moswaren average can accommodate 15,000

m3 per month of merbau logs. And this is not in accordance with the permit capacity of CV Alco Timber Irian Unit Moswaren, that is 1,500 M3 per year. Fourth, it is suspected that CV Alco Timber Irian Moswaren Unit buys wood belonging to the community through CV Muktisari, either in the form of processed wood or logs without a Wood Supplier Cooperation Agreement at a very cheap price. The owner of CV Muktisari is the Chief Hamlet of Bumi Ajo.

Based on the results of the field monitoring, it can be concluded that: First, although their Timber Legality Certificate (S-LK) has been revoked, the company should still make a Mutation Report Timber (LMK) and reported it to the Provincial Forestry Service. This matter in accordance with Ministerial regulation of Environmental and Forestry (PermenLHK) No 1/2019 concerning Primary Industrial Permits Forest products. Forestry policy change process from official assessment to self-assessment in recording LMK that can give a negative impact to the implementation of timber administration if the intensive guidance from the local Forestry Service is not available. Second, CV Alco Timber Irian Moswaren unit produces wood beyond capacity permit occurs due to lack of supervision and guidance from local Forestry Service. In Ministerial regulation of Environmental and Forestry (PermenLHK) P.1 of 2019, If the primary industry expands its business without a permit, the Provincial Forestry Services provides administrative sanctions ranging from warning to revocation of the business license. In fact, CV Alco Timber Irian unit Moswaren did not receive any sanctions. Third, CV Alco Timber Irian Unit Moswaren as the primary industry (IUIPHHK) should not accept processed wood. Fourth, CV Alco Timber Irian does not make a cooperation contract with CV Muktisari. On the other hand, in PermenLHK P.1 of 2019 is stated that the primary industry is required to submit monthly reports of fulfillment and use/processing of raw materials and production to the Provincial Forestry Service. Other than that, CV Alco Timber Irian is also obliged to have a work contract with its suppliers. Fifth, in a broader context, we conclude that the Timber Legality Verification System (SVLK) assessment is carried out partially to certain management units without considering the company group, that is a gap for wood laundering. This is indicated by the case of defendant Ming Ho as the owner of the Alco Timber

Group who proven guilty in the case of illegal logging, but one of the company’s belonging to the group, namely CV Alco Timber Irian District.

As a follow-up to the monitoring results, independent monitors of West Papua will report violations carried out by CV Alco Timber Irian Moswaren Unit to Provincial Forestry Service so that sanctions are able to be applied in administrative matters as regulated in Ministerial regulation of Environmental and Forestry (PermenLHK) no. 1/2019. Meanwhile, the Center of Environmental Education (PPLH) of Mangkubumi will send a letter to Ministry of Environment and Forestry in particular the Directorate of Contributions and Revenue Distribution Forest about: (1). Increasing supervision of the Ministry of Environmental and Forestry (LHK) concerning the circulation of timber recorded in the Forest Product Administration Information System (SIPUHH) Online system; (2). Requesting information about the 2019 and 2020’s wood mutation data belongs to the Alco Timber Group.

Picture 17.Timber Trade Chain of CV Alco Timber Irian Unit Moswaren West Papua

PT Uniraya Timber

PT Uniraya Timber is one of the primary industrial companies in Indonesia in the field of timber forest product management domiciled in Katimin Village, Sorong Regency, West Papua Province. This company has operated since 2000 with the legality of Timber Forest Product Processing Primary Industry Business License (IUIPHHK) with Decree Number (SK) Number SK.17/MenhutII/2009 from the Ministry Forestry. In 2019, the company won the SK IUIPHHK Number SK.918/Menlhk/Setjen/HPL.0/10/2019 from Ministry of Environment and Forestry with capacity production of 20,000 m3 per year.

PT Uniraya Timber since 2015 has bagged Timber Legality Certificate (S-LK) from PT BRIK Quality Services Certification Agency. In 2016, the company did recertification due to permit expansion. In 2019, PT Uniraya Timber is recertified by the certification body which is the same as the S-LK No. BRIK-VLK-0152. In August 2020, it was carried out the first surveillance and declared to meet. So, at that time this report was prepared, PT Uniraya’s Timber S-LK is active.

For the information, this company has been involved in illegal cases logging in 2005 as reported by liputan6.com. Integrated Team for Sustainable Forest Operations II consisting of the National Police, Police Center the National Military, and the Ministry of Forestry and Immigration, arrested two suspects illegal loggers in the Wasensan Archipelago Village, Seget District, Sorong. In a village that is three hours by sea from city of Sorong, there is a logpond or wood stockpile owned by PT Uni Raya Timber. At that place, officers confiscated about 3,000 m3 merbau wood that has no legal documents. They also arrested dozens of units of heavy equipment used to transport the wood.

Meanwhile, one of the company partners that receive the wood they produce is PT Haswin Hijau Perkasa in Gresik district, East Java. According to Mas Slamet, who is an employee of PT Haswin who was placed at PT Uniraya Timber. PT Haswin is the partner of PT Uniraya Timber in terms of capital, equipment and workers. The number of workers at PT Uniraya Timber is 100 people consist of

8 local Papuan workers from the village of Katimin and 92 workers from Surabaya who are directly under control of PT Haswin. SL also said that PT Uniraya Timber only receives wood and then sends it to PT Haswin in Gresik.

However, information on the cooperation between PT Uniraya Timber with PT Haswin Hijau Perkasa, in this period of monitoring, there has not been found the documents as the cooperation evidence between the two companies. The monitors are guided only on the 2019 RPBBI document. In the RPBBI document of PT Haswin, no mentioning the name of PT Uniraya Timber as the raw material supplier. From the results of the search for PT Uniraya Timber’s RPBBI documents, in 2019, this company received a supply of merbau wood type from PT Bina Blantak Utama in Sarmi Regency, Province of Papua, and PT Diadyani Timber in Mimika district, Province of Papua and PT Teluk Bintuni Mina Agro Karya (TBMAK) in Teluk Bintuni Regency, West Papua Province. That matter corroborated by the results of monitoring searches, that there is a pile of merbau logs type attached with PT Bina Balantak Utama barcode at the PT Uniraya factory site Timber.

Based on the findings from the observations field and company employee interviews, there are indications that PT Uniraya Timber in running its business as a primary industry is not guided by the RPBBI itself, but is suspected producing according to orders from investors or wood recipients, namely PT Haswin Green Mighty. In addition, the monitors also found other findings. From the confession of the people in Katimin village, usually the timber that entered the PT Uniraya Timber factory site is without V-Legal barcode. In fact, a pile of logs that located at the factory location of PT Uniraya Timber is barcode installed. There is an indication that the new V-Legal barcode is installed after the wood is located at the factory site. This could be the mode to do wood document laundering by PT Uniraya Timber.

In terms of wood utilization, PT Uniraya Timber as the primary industry that has obtained Timber Legality Certificate (S-LK), they should record the processed wood mutation report (LMKO) when perform sawmill activities. From the confession of interview in the

field, it is explained that in principle this company works according to the Timber Legality Verification System (SVLK) standard where there must be a record of the processed wood tally sheet. The informant said that PT Uniraya Timber records production reports processed wood products, and also reports on processed wood mutations. However, the employee can’t show or provide the document to the monitor with various reasons.

In the aspect of fulfilling criteria 4.1 in the SVLK regarding occupational safety and health, PT Uniraya Timber does not run the rules. This is proven by the findings in the field where the employees of PT Uniraya Timber work without personal protective equipment such as gloves, masks, etc. According to an employee, PT Uniraya Timber provides equipment personal protective equipment that should be worn when employees work. But, because the company doesn’t obligate it, the employees don’t wear it. However, in the results of the 2020 surveillance, PT Uniraya Timber is declared to meet the safety and health aspect. It means, there is a discrepancy between surveillance results in August 2020 with monitoring results in November 2020.

The results of this monitoring are the starting point for engagement active of indigenous peoples in monitoring the Timber Legality Verification System (SVLK). To Follow up the findings above, indigenous people will carry out more in-depth monitoring of PT Uniraya Timber and will follow up by sending a letter of complaint to the PT BRIK Quality Services Certification Agency for the findings the monitoring.

Picture 18. Pile of Merbau logs affixed to the barcode PT Bina Blantak Utama at the PT Uniraya Timber factory site

Picture 19. Timber Trade Chain of CV Uniraya Timber West Papua

PT Kharisma Chandra Kencana

PT Kharisma Candra Kencana (PT KCK) is a company of Timber Forest Product Management Industry Business License (IUIPHHK) holder with Permit Number 183 of 2008. This company carries out its industrial activities in Km 09 Kampung Wesiri District Manimeri, Teluk Bintuni Regency, West Papua. PT KCK is only processing raw materials for merbau wood, the raw materials come from several areas in Papua, namely Teluk Regency Bintuni, Teluk Wondama Regency, Kaimana Regency & Nabire Regency, Papua Province.

PT KCK obtained S-LK since May 4, 2017 with PT Mutuagung Lestari (PT MAL) certification body with number Timber Legality Certificate (S-LK) No. LVLK-003/Quality/LK-466. February to March 2018, PT KCK allegedly received illegal timber from PT Nurkhasanah Karunia Abadi (PT NKA) . Then on May 4, 2018, PT MAL freezed PT KCK’s Timber Legality Certificate (S-LK) with Cessation Letter number 1550.31/EXT-MUTU/V/2018 with reasons until such time determined that PT KCK did not confirm its willingness to the first Surveillance activity was carried out. In the cessation period, PT KCK then stated that they would fulfill their obligations as S-LK holders to carry out 1st surveillance. Then on July 9-14, 2018, PT MAL conducted the 1st surveillance of PT KCK and S-LK has been declared active again. Likewise with the 2nd surveillance in June 2019 and 3rd surveillance in March 2020, PT KCK was declared to meet and still have the right to use the S-LK.

In addition, PT KCK in 2018 and 2019 allegedly received NonPolice Line (NPL) wood from PT Rimba Kayu Arthamas (RKA) through transportation services of PT Kaimana Papua Mandiri (KPM). Based on the Decree of the Minister of Environment and Forestry No. 350 of 2018 that NPL wood cannot be used. So that, when there is a practice the use of fallen wood/NPL is an illegal crime logging. Meanwhile, to ensure the compliance of PT KCK to the provisions of the SVLK, an independent monitor of The Moskona Indigenous Peoples of Bintuni Bay carried out monitoring in NovemberDecember 2020 by visiting primary industry location (IUIPHHK) PT KCK and performed an interview with one of the employees. The monitors found a few things as follows:

First, the monitors found processed wood at the PT KCK site which is suspected not to be wood produced by PT KCK. Based on the results of an interview with one of the employees of PT KCK in November 2020, the processed wood allegedly belonged to a wayward official that is a former Commander of the Kasuari Military Command with the initials JOW. The wood was obtained from one of local communities in Bintuni and deposited in the PT KCK which will then be sent to Yogyakarta via Surabaya for the construction of a hotel owned by JOW. Second, based on November 2020 interview with one of the employees of PT KCK initials H, PT KCK received processed wood from one of the people from SP4 Awaba Village with the initials M. The wood planned to be sent to Yogyakarta but first accommodated to one of the companies in Gresik. The wood is sent to Yogyakarta by the company in Gresik for the construction of a hotel. Third, in previous years, PT KCK was also suspected of received logs that had been supplied with NPL wood from PT PT Rimba Arthamas Wood (RKA) around 2018 to 2019.

To follow up these findings, independent monitors of indigenous people through Arrow Papua NGO reported the alleged receipt of illegal timber to the regional Law Enforcement (Gakkum) of Maluku Papua region of the Ministry of Environment and Forestry. The letter was sent on February 5, 2021.

Picture 20. Trade Chain of PT KCK West Papua

Picture 21. Log shelter and sawmill of PT Kharisma Candra Kencana

PT Rimba Kayu Arthamas

PT Rimba Kayu Arthamas is a company of Management of Natural Timber Forest Products (IUPHHK-HA) business license holder with permission no. SK.16/1/IUPHHK-HA/PMDN/2016. This company has been known by the people of Bintuni as a company “Arthamas” for a long time and has been operated around the 1990s in the region of Sebyar customs, Moskona and Sough tribes. The concession area is 130,400 hectares which covers the area of Tuhiba District, Tembuni, Arandai, Masyeta, Merdey and Biscoop. Based on the Audit results, PT RKA has obtained Timber Legality Certificate (S-LK) from PT Garda Mutu Prima with GMP/2020/20031 Certificate Number valid from July 28, 2020 until July 27, 2023.

In November 2020, independent monitors from the “Moskona” indigenous people was carried out a monitoring of Timber Legality Verification System (SVLK) implementation at the location/ concession of PT RKA and obtained findings and the information as follows:

1. Logging outside the PT RKA concession. Based on result of the implementation of Timber Legality Verification by

PT Garda Prima Quality towards PT RKA shows that PT

RKA uses a legal forest area in accordance with the area permission. However, based on the results of the field visits, logging activity was found outside the PT RKA permit area and entered the territory of indigenous peoples of

Meyado village. The logging was allegedly carried out by PT

RKA through PT Kaimana Papua Mandiri (PT KPM) as the contractor. 2. At a meeting between the community and PT KPM, the community asked a payment of timber compensation to

PT KPM. The meeting took place on August 23, 2020 in

Meyado village which was facilitated by the West Papuan

People’s Assembly. In the meeting, The Manager of PT

KPM admitted that there is a partnership with PT RKA to collect the remaining NPL felled wood Sustainable Forest

Operations (OHL) in 2003. On the other hand, based on the Decree of the Minister of Environment and Forestry No. 350 of 2018, NPL wood should not be used.

3. PT RKA Processes Logs into Sawn timber. The monitoring result shows that PT RKA is suspected in a collaboration with PT KPM to carry out the processing of merbau type logs into processed wood in the Forest area. Whereas, based on the permit, PT RKA as a natural forest concession holders cannot process logs into processed wood. The log is estimated to be processed around March and November 2020. This is known from photos belonging to facebook account Via Kenzi Via Kenzi . The photos show that Via

Kenzi Via Kenzi (Allegedly real name initials R) works at PT

KPM based on the evidence such as the salary slips issued by

PT KPM and employee monthly time sheets. These images were obtained from the social media account of someone named Via Kenzi Via Kenzi uploaded on December 1, 2020.

It is strongly suspected that the Via Kenzi Via Kenzi account is a worker of PT KPM. This is also evidenced by the field findings of the monitors who find processed wood in the forest area as in the photos below.

Picture 22. Map of illegal logging locations outside the PT RKA concession area, in allegedly committed by PT RKA through PT KPM

Picture 23. PT Rimba Kayu Arthamas Timber Circulation Chain