Timber companies go bankrupt

Timber companies go bankrupt

SAMARINDA, East Kalimantan: Over the past five years, 58 of 103
companies with forest concessions have gone bankrupt because of
illegal logging, an executive at a timber company association
said on Friday.

Uuh Aliyudin, an executive at the Indonesian Timber Company
Association, said the companies could not compete with those
parties that were profiting from illegal logging.

"They sell the illegally cut logs at low prices that drive the
legitimate companies out of business. The logs can be sold at
lower prices because those irresponsible parties do not
necessarily pay reforestation funds and other bureaucratic
expenses," said Aliyudin.

Aliyudin said illegal logging was out of control in East
Kalimantan because the demand for logs in the country had been so
high over the past few years. -- JP