Indonesian Political, Business & Finance News

RI, UK to curb illegal logging

| Source: JP

RI, UK to curb illegal logging

The Jakarta Post, Jakarta

The government has signed a memorandum of understanding (MoU)
with the United Kingdom to help curb rampant illegal logging in
Indonesia.

The MoU was signed by Minister of Forestry M. Prakosa during a
visit to London last week.

Prakosa said on Wednesday that under the agreement, the two
countries would cooperate in developing and implementing a
verification system to detect and identify the legality of logs
and wood products.

He added that the cooperation was also aimed at stopping the
international trade of illegal logs and wood products.

Prakosa said that the British government would provide
technical and financial assistance to Indonesia.

"This fundamental initiative is just the starting point in
curbing illegal logging. I hope there will be many similar
agreements with other countries," Prakosa said.

Reports earlier said that illegal loggers cut down some 60
million cubic meters of timber each year and the government had
lost some Rp 30 trillion (about US$3 billion) in tax revenue each
year.

Recent government data indicates that Indonesia has lost more
than 75 percent of its natural forests over the past few decades,
leaving only around 60 million hectares today.

During his visit, Prakosa also met with the United Kingdom
Timber Trade Federation and several non-governmental
organizations (NGOs).

Illegal logging has also troubled Indonesia's plywood
industry. The Indonesian Plywood Association (Apkindo) reported
last week that overseas plywood makers particularly from China
and Malaysia now control 60 percent of the domestic market,
offering cheaper plywood made from illegally procured logs from
Indonesia.

The cheaper price is made possible because the logs sold
illegally are not subject to various taxes.

Prakosa said that he also visited the European Commission in
Brussels to discuss the country's efforts to curb illegal
logging.

Prakosa asserted that the European Commission has promised to
help Indonesia in its efforts, including granting the country a
special tariff facility under the Generalized Scheme of Tariff
Preferences for the export of legal wood products to EU
countries.

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