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.