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The investigations into 14 pulp and paper companies for illegal logging and environmental destruction in Riau have long since been in the “cold case” file, and there are no indications that the provincial police will reopen the investigation.

But cold doesn’t mean dead. The Corruption Eradication Commission (KPK) is moving forward with its investigation into graft involving provincial and local government officials and companies in Riau over the issuing of improper forestry plantation permits.

In 2008, the KPK announced that three former heads of the Riau forestry agency — identified at the time only as S.T., A.R. and B.H. — and Tengku Azmun Jaafar, a former district chief of Pelalawan, were suspects. The probe was related to the improper approval of yearly plantation working plans for numerous companies in Pelalawan district between 2001 and 2006, which caused financial losses to the state.

The KPK prosecuted Azmun for corruption related to the issuance of forestry plantation permits from 2001 to 2006 in Riau’s Pelalawan district. He was convicted, and in Supreme Court in 2009 upheld Azmun’s conviction and 11-year prison sentence.

The next year, Asral Rachman, head of the Riau forestry agency in 2004 and 2005, was sentenced to two years and six months in prison for corruption relating to Azmun’s involvement in issuing permits.

“There are still two other suspects, S.T. and B.H., former heads of the Riau forestry agency, who have not been detained, but this case is not over yet,” Johan Budi, a spokesman for the KPK, said in February. “The investigation is not over yet, as we are still developing our probe related to Azmun’s case. It will take time, but we are not done yet.”

He added that the KPK remained on the hunt, naming the head of Riau’s Siak district, Arwin A.S., a suspect in connection with issuing illegal permits between 2001 and 2003.

“We can’t say when this investigation will end, but as long as there is evidence of corruption, then we will prosecute them,” Johan said. “We have also questioned employees of Riau Andalan Pulp and Paper on February 17, related to Azmun’s case. Like I said, it’s still developing.”

RAPP did not respond to numerous phone calls and e-mails from the Jakarta Globe seeking comment.

From KPK to SP3

Febri Diansyah, the legal affairs coordinator of Indonesia Corruption Watch, said the KPK should start from the beginning, especially considering the Riau Police had already issued an order to halt its investigation, known as an SP3.

“They closed the case based on the argument that [the pulp and paper companies] were not [subject to] forestry crimes, so [the KPK] just started to handle corruption allegations which related to Tengku Azmun’s case,” Febri said.

Furthermore, he said, the KPK would not be overlapping with the Riau Police investigation because any charges would focus on the permits being illegally issued and thus violating the Anti-Corruption Law.

“It’s already clear in Azmun’s verdict, and it already went up to the Supreme Court,” Febri said. “If a person obtains a driver’s license without going through the proper process, then the Anti-Corruption Law could intervene in the matter. It already ruled [at Azmun’s trial] that the permits are not legitimate and that those licenses went out because there was corruption [involved], including abuse of power and activities against the law.”

Azmun’s Indictment

Azmun was found guilty of issuing forestry plantation permits to 15 companies in violating of the 2000 Ministerial Decree on Procedures for Issuing Permits to Manage Forest Plantations. Among them were firms investigated by the Riau Police in 2007 and 2008 for illegal logging.

Seven of those companies are affiliated with RAPP: Bhakti Praja Mulia, Selaras Abadi Utama, Tuah Negeri, Mutiara Lestari, Alam Lestari, Putri Lindung Bulan and Merbau Pelalawan Lestari.

The rest are Satria Perkasa Agung and Mitra Hutani Jaya of the Sinar Mas Forestry Group; Uniseraya, Rimba Mutiara Permai, Mitra Taninusa Sejati, and Triomas FDI of the Panca Eka Group; and Madukoro and Harapan Jaya, which also linked to RAPP.

Azmun’s charges also included issuing permits in order to financially benefit himself, and misuse of official authority. He was convicted of receiving Rp 600 million ($70,200) in bribes for giving permits to Madukoro and Harapan Jaya. The losses incurred by the state in the case totaled Rp 1.2 trillion.

Meanwhile, Syuhada Tasman and Burhanudin Husin, both of whom were former heads of the Riau forestry agency, were declared suspects by the KPK.

Febri said Madukoro and Merbau Pelalawan Lestari, which were among the 14 companies that police implicated in the illegal logging cases in Riau, were alleged to have caused state losses of Rp 201 billion.

“That is why we urged Satgas [Judicial Mafia Eradication Task Force] to move forward on the case and also recover state losses that had already benefited several people and companies,” Febri said. “But, how come it has not reached the companies? It would be a good opportunity for the KPK and other law enforcers, like the police, to implement the concept of corporate responsibility where companies are liable for criminal charges.”

Johan said the Riau Police and KPK handled different aspects of the case.

“The police handled illegal logging, while we are handling corruption. That’s two different things: the police handle activities for illegal logging but we deal with permit issuances that resulted in corruption,” Johan said.

Revisiting the Case?

Indonesia’s illegal logging problem was thrust back into the spotlight in April 2010 when President Susilo Bambang Yudhoyono ordered the Judicial Mafia Eradication Task Force to reveal the “mafia” in logging.

The day after the president’s order, a coalition of civil activists including Indonesia Corruption Watch and the Indonesian Forum for the Environment (Walhi), submitted a report that suggested judicial mafia involvement in the order to halt the Riau Police investigations into the 14 pulp and paper companies.

The coalition then reported 12 public officials including one governor, four district chiefs, two senior police officials, an official from the Ministry of Forestry and four former officials from Riau’s forestry agency, to the task force for allegedly helping to quash the police investigation.

Danang Widoyoko, coordinator of ICW, said that through the KPK, the halted investigations involving the 14 companies in Riau should be considered as corruption cases because state losses had been incurred by the issuance of forestry permits.

“Unfortunately, this aspect could not be used by the police as they only considered this as forestry procedures, so there are no violations and it can only be tackled with administrative sanctions,” Danang said after meeting with the task force in February to follow up on their report, which was submitted 13 months ago.

“We want [the Riau case] to be re-opened because we reported on the SP3 and Azmun’s case. How come the police investigation stopped, but the KPK is still moving,” Danang said. “Something is weird here. That’s why we asked [the task force] to investigate this because Azmun’s case in the Supreme Court had been proven to cause state losses. So how come it stalled with the police?”

The coalition also argued that in-house experts from the Ministry of Forestry were not competent to determine whether there were criminal violations by the pulp and paper companies because the experts had no experience in criminal law. “Also, there should not be any Forestry Ministry officials as expert witnesses because officials from the ministry were already suspected to be involved, so there was a conflict of interest,” Febri said.

Danang said the case against the companies could still be re-opened.

“It wouldn’t need new evidence to open the case, it would only need a new law construction,” he said. “The KPK uses the Anti-Corruption Law … but the police can [also] use the Anti-Corruption Law to see how much the country suffered in losses because the Forestry Law does not count state losses.”

Read the chronology of the case: A Timeline of the Riau Investigation

This story is part of a special report:  How a $115b Illegal Logging Probe Was Felled