Importing logs

Importing logs

Indonesia, though its economy is still based largely on
agriculture and agro-industry, must depend mainly on imports to
satisfying demand for soybeans, corn and several other farm
commodities. And that anomaly, we are afraid, may worsen soon, if
wood-based industries are forced to import logs (round wood).

However dreaded that development may be, especially because
this country is supposed to hold the world's second largest
tropical forest resources (120 million hectares), the
possibility of importing logs was hinted at by Minister of
Forestry Djamaludin Suryohadikusumo last week. Djamaludin told
reporters that log imports would have to be done if Indonesia
wants to preserve its natural forests and, at the same time,
ensure raw material supplies to its wood processing industries.

We were greatly surprised by the minister's remarks because
the government and the Indonesian Forestry Society have always
boasted, in response to the criticism by domestic and foreign
environmentalists, that the country's forest resources have been
managed according to the principle of sustainability.

True, that principle is clearly stipulated in the Indonesian
Selective Cutting and Planting System and its technical
directives, which have been amended several times to guarantee
better resource management. Under the system, a forest concession
is divided into 35 individual one-year cutting plots and only
trees with a diameter larger than 50 centimeters can be
harvested. Enrichment planting and maintenance work has to be
done in logged plots. Moreover, concessionaires are required to
submit annual cutting plans which have to be approved by the
ministry before harvesting is allowed. On top of that, logging
companies also have to submit a five-year management plan and an
overall management plan that covers the entire duration of the
concession. Theoretically, the system should be effective in
sustaining forest resources because the cutting cycle in a
concession runs for 35 years.

The big question is why the log supply seems to have become
inadequate just 25 years after the start of the logging boom in
the early 1970s. Obviously, over-logging is one of the main
reasons. Since a concession lasts 20 years and the holder has no
guarantee that it will be extended, there is little incentive to
conform to the principle of sustainable management. The
government became aware of that shortcoming a long time ago but
it has not done anything to address the problem.

Inadequate supervision of logging operations has also
contributed to the high pace of deforestation. Forestry
officials, who are not adequately equipped to conduct site
supervision, emphasize document processing. Local officials who
do site inspections are either vulnerable to collusion with the
loggers or feel powerless to deal with the politically-well
connected concessionaires. On top of that, illegal logging, with
the support of local security officials, is rampant in several
areas.

The forestry ministry has canceled 160 concessions, but only
after the forested land in question was almost denuded of
standing stock.

Further accelerating the depletion of timber resources is the
wasteful use of round wood. The ministry has long been aware of
the huge amount of waste in logging, saw milling and plywood
manufacturing, but has not done enough to encourage the
development of higher value added products such as, furniture,
molding, door frames and other building components. The bulk of
processed wood imports has been sawn timber and plywood.

In recent years, the ministry has tightened supervision to
prevent illegal logging, and over-logging by concessionaires, but
the move has so far resulted mostly in distorted log markets.

In view of all these problems, we don't think importing logs
would be the best solution, however short term the measure might
be. The ministry should instead allocate more resources to
improving the effectiveness of its supervision to keep
concessionaires on their toes.

But given the political connections of many concessionaires,
such a move would be possible only if the government showed a
stronger political will to enforce sustainable management of the
nation's valuable forest resources.