KPK Finds Irregularities in Kalimantan Palm Oil Companies

TEMPO.CO, Palangka Raya  The Corruption Eradication Commission (KPK) has indicated that 75 out of 327 palm oil companies in Central Kalimantan are operating beyond their concession area.

The Central Kalimantan provincial government has therefore investigated the KPK findings. Central Kalimantan Governor Sugianto Sabran revealed the findings in his meeting with hundreds of mining, palm oil and forestry business owners in Palangka Raya on Monday, October 24.

“I’ve been told by the KPK that 75 palm oil companies are indicated to operate in overlapping concessions. The KPK has asked me to monitor and address it,” he said.

The Governor added that there are currently hundreds of trucks owned by plantation and mining companies operating in Central Kalimantan that bear license plates of other regions. As a result, it has reduced Central Kalimantan’s regional income (PAD).

“Therefore, I wish to cooperate with business owners in addressing the issue and I will give you six months. If nothing is done during that period, I will collaborate with Regional Police to detain corporate trucks who do not bear Central Kalimantan license plates,” he said.

Data from Central Kalimantan Plantation Department show that there are currently 327 palm oil plantations in the region having concession areas of 3.9 million hectares.