Illegal Logging in Indonesia

Illegal Logging in Indonesia
by Faith Doherty, Environmental Investigation Agency

In Indonesia illegal logging is a massive problem that has resulted in undermining the rule of law and substantial revenues to the state. It encourages forest crimes, and has serious economic and social implications to the poor and disadvantaged. The threat to ecosystems and biodiversity is enormous with very little long-term advantages for anyone other than those who are responsible for the plunder and smuggling of timber from one country to the next.

In August 1999, the Environmental Investigation Agency (EIA) and Indonesian partners Telapak released a report in Jakarta called The Final Cut, exposing the commercial logging of Tanjung Putting National Park in Central Kalimantan, Indonesia.

We found that the main timber species being exploited in the park for global markets is ramin (Gonystylus spp.) a tropical hardwood that grows in peat swamp and the lowland fresh water swamp forests in Borneo, Sumatra and Peninsula Malaysia. It is traded internationally for a range of products including interior mouldings, furniture components, picture frames, and dowels. The Final Cut and the EIA/Telapak campaign exposed names, gave evidence with footage and stills, and to this date continues to investigate and monitor not just the commercial logging of Tanjung Putting, but the illegal trade which allows this timber to be sold onto international markets.

By focussing on a single commercial tree species the workings of the illegal logging and trade in this area has been revealed. From the gangs of illegal loggers controlled by middle men, to the politicians and military who profit directly from illegal activities; Tanjung Putting National Park has become a test case for the Government of Indonesia (GOI) in how it is willing to combat illegal logging, and the trafficking of illegal timber for international consuming markets.

Indonesia's timber that is stolen from the country's forests finds it way on to the international market either directly or through neighbouring states, especially Malaysia and Singapore where the timber is successfully laundered and sent onto the US, Europe, Japan, Taiwan and Mainland China marketplace.

After two years of further investigations by EIA/Telapak and local partner NGOs and a revealing insight into how these crimes were being committed, the Government of Indonesia (GOI) acted and finally showed some political will to deal with the situation. In April 2001, a ministerial decree was issued to place a temporary moratorium on the cutting and trading of this threatened species. Following the decree the secretariat of the Convention on International Trade in Endangered Species (CITES) was notified that Indonesia was placing its ramin on Appendix 111 of CITES with a zero quota. By doing this the GOI is asking for international support and is now placing some of the responsibility for ramin timber theft on importing countries. Consuming countries are now bound by their national CITES legislation to prevent imports of Indonesian ramin with the exception of Diamond Raya Timber, a company controversially certified in Spring 2001. This is the only international legally binding instrument that the GOI could use to help start to protect its forest in Tanjung Putting. There are no other laws that exist that address the trade in illegally sourced timber and its consumption to this date.

On August 17th, 2001 the Malaysian CITES management authority notified the secretariat that they would be taking an exemption on the ramin listing for its parts and products. By doing this Malaysia is acting against the spirit of the treaty and undermining Indonesia's call for help to protect ramin. Malaysia does not need to make a reservation in order to continue to export ramin - as long as it has been legally cut within the country. In spite of this, the listing does not prevent Malaysia from exporting its ramin parts and products.

Following the registering of ramin and a new Indonesian President, in early August a new Minister for Forests was appointed. Until this time there had been no real steps made in actively pursuing the timber barons both in Indonesia and neighbouring countries who are involved in the running and supply of timber for syndicates with businesses that feed the consuming markets overseas. Although ramin had been placed on Appendix three the issue of enforcement and accountability within Indonesia was still being avoided.

In September 2001, the Forest Law Enforcement and Governance (FLEG), East Asia Ministerial Conference was held in Bali, Indonesia. 150 participants from 20 countries were involved representing government, NGOs, and the private sector. Singapore and Malaysia did not attend. The result was an unprecedented commitment from Government ministers from around the East Asia region to take action in combating "Forest Crimes" that include illegal logging, the trafficking of illegal timber, parts and products, and the trade in illegal imports. Other consuming countries also attended including the USA, UK, Japan and China and agreed to the declaration. It was acknowledged and openly discussed that at the centre of this problem was corruption, which existed not just within governments but within the industry as well.

Two months after FLEG, Indonesian forest law enforcers and the Indonesian Navy seized three cargo ships allegedly transporting illegal timber to international markets from Central Kalimantan in Indonesia to China. The ships were detained together with Captain and crew to the navy depot in Jakarta and are to date still interned. While investigations continue it is estimated that the shipping companies are loosing approximately US$10,000 a day. The broker involved in providing the illegal timber has lost his commodity and the importer its goods. A small but significant signal is being sent to shipping companies that Indonesia is now prepared to seize and hold timber that is being traded illegally.

It is hard to believe that the issue of legality has not been openly addressed until now. With these commitments made by the governments of the East Asia region the industry must also participate in ensuring the resources they are involved in buying and selling, come from legal sources. There is an urgent need for new legislation prohibiting the import and sale of illegally sourced timber and products. The laundering of illegal timber is in itself a massive commerce benefiting only those who control the syndicates; criminal elements within the trade must be confronted.

Governments need to develop new procurement policies that demonstrate timber and wood products have come from legal sources, industry needs to adopt transparent chain of custody processes which allows timber tracking from source to market. Producing countries need to formalise a system of cross border cooperation between national enforcement authorities, and to enact legislation allowing the confiscation of illegal timber and those dealing in it outside the country of origin. These are some of the recommendations that EIA/Telapak see as being essential first steps in combating illegal logging and the trade. And at the core of it all is corruption recognized by 13 countries in the region with a commitment to act, with industry and civil society involved illegality can be fully addressed.