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