Illegal logging: It's not just about law enforcement<\/p>\n
Luca Tacconi, Senior Economist, Center for International Forestry Research
\n(CIFOR), Jakarta<\/p>\n
In 2001, the most recent year for which relatively accurate
\nstatistics are available, Indonesians consumed some 19 million
\ncubic meters of timber in the form of paper, sawn timber,
\nplywood, and other products. In the same year, Indonesia exported
\nthe equivalent of 40.7 million cubic meters of timber, again
\nmainly as pulp and paper, plywood, and sawn timber.<\/p>\n
The trees harvested to produce this amount of timber products
\nwould cover an area of some two million hectares of forest, or
\nsome 2.4 million soccer fields. In 2001, forestry products
\ncontributed 1.1 percent to Indonesia's Gross Domestic Product,
\nand about US$5.1 billion in exports. The officially reported log
\nharvest for 2001 was an estimated 10 million cubic meters.<\/p>\n
This means that of the total harvest of about 59.7 million
\ncubic meters, about 50 million cubic meters were logged
\nillegally. In other words, the volume of illegally harvested logs
\nwas almost five times greater than legally harvested logs. From
\nthis, it is obvious that large-scale operations are involved in
\nthe illegal logging, rather than the odd small-scale operators
\noften singled out to show that law enforcement is working.<\/p>\n
It also implies that illegal logging involves issues that go
\nfar beyond mere law enforcement. Quite clearly, illegal logging
\nalso involves a range of structural and capacity issues across
\nIndonesia's timber industry.<\/p>\n
Some of those concerned about the conservation of forests in
\nIndonesia have proposed downsizing the forestry industry to a
\nlevel that matches sustainable levels of timber production. The
\nMinistry of Forestry has set the annual allowable cut for 2003 at
\n6.3 million cubic meters. To operate at this level, the forestry
\nindustry would have to reduce its timber output by roughly 90
\npercent compared to 2001.<\/p>\n
But this begs the question: Where will the products demanded
\nby Indonesian and overseas consumers come from if the Indonesian
\ntimber industry is downsized? The answer is probably from other
\ntropical forests, which would almost certainly mean shifting
\nillegal logging and deforestation to other countries. Although,
\nover a period of time, these products may also eventually come
\nfrom already developed countries that are experiencing an
\nincrease in planted forests.<\/p>\n
The Indonesian government has made a commitment to the
\ninternational donors participating in the Consultative Group on
\nIndonesia to downsize the timber industry so as to reduce illegal
\nlogging and to achieve sustainable forest management. It is
\napparent to most observers that the Indonesian government has
\nbeen reluctant to act on that commitment. This reluctance may be
\nexplained by two simple reasons.<\/p>\n
First, downsizing the forestry industry has obvious economic
\ncosts, represented by increased unemployment and a reduction in
\ngross domestic product and exports. Second, the negative economic
\nimpacts could have serious political ramifications for national
\nand local politicians seeking re-election.<\/p>\n
But these arguments are insufficient reason for doing nothing
\nto change in the Indonesian forest sector. It is clear that the
\nforest sector does not have a long-term future if current
\npolicies remain unchanged and the industry continues to over-
\nexploit and illegally use the nation's forest assets.<\/p>\n
However, the solution is not simply a matter of downsizing the
\nforestry industry. The solution also requires providing
\ninducements to industry to establish plantations and removing the
\nincentive to carry out illegal logging.<\/p>\n
Such changes would require a mix of regulatory and market
\noriented approaches. For example, trade barriers such as the ban
\non the export of logs -- which in effect reduce domestic log
\nprices -- would have to be removed. And illegal logging
\nactivities would need to be made prohibitively more expensive by
\nintroducing chains-of-custody systems to ensure timber products
\nreaching the markets are manufactured from legally harvested
\ntimber. Implementing independent and honest monitoring systems
\nwould also make it tougher for illegal loggers.<\/p>\n
As with so many of Indonesia's development challenges, not
\njust the government but each and every single Indonesian citizen
\nmust get genuinely serious about fighting corruption. It is a
\npublic secret that companies have to pay bribes whether they deal
\nwith legal or illegal timber. Less corruption will bring about
\nconsiderable improvement in the sector. To achieve this,
\npoliticians and senior managers need to show the way. Committed
\nand honest leadership is crucial to reducing corruption.<\/p>\n
Solutions to the forest sector's existing problems must be
\nfound both within Indonesia and in the international arena. It
\nshould not be forgotten that at least one third of the wood
\nproducts manufactured in Indonesia are also consumed
\ndomestically. Nor should we forget that although most of
\nIndonesia's timber exports leave the country legally in the form
\nof plywood, pulp, and paper, most of them are sourced from
\nillegal logging. The illegal export of logs accounts for only
\nbetween five and ten percent of total log production.<\/p>\n
Unless regulatory and market reforms take place, the economic
\nand environmental benefits the forest sector currently provides
\nwill not last much longer. Then we certainly will see not only
\nconsiderable job losses and serious economic impacts, but also
\nthe loss of one of the world's greatest natural treasures -- the
\nIndonesian rainforests.<\/p>",
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