Timber industry in Indonesia

The logging industry is one of Indonesia’s most profitable institutions and has played a key role in sustaining Indonesia’s economy in the recent three decades.

Dipterocarps within the forest such as Meranti (Shorea spp.), Keruing (Dipterocarpus spp.) and Kapur (Dryobalanops spp.) are commonly harvested for their durable dense wood. With the forest sector harvesting one of the most productive tropical forests in the world, it is no surprise that Indonesia became one of the largest exporters of plywood and wood products globally.

Illegal logging plagues Indonesia’s forests

Unfortunately, corruption, bribery and poor law enforcements has allowed logging operations to run rampant through the forests since the 1990s. A large number of studies have pointed out the state of illegal logging operations in Indonesia leading to rapid loss of forested land. Even when operators required licenses and permits to log, the lengthy process of obtaining said permits was costly in terms of time and money, which encouraged companies to operate “under a semblance of legality” (McCarthy 2002).

“The country (Indonesia) performed poorly in terms of freedom from corruption, with a score of 28 on a 0 to 100 scale….a majority of cities in the country score below the average of 4.42 (on a 0, meaning more corrupt to 10, clean, scale).” – Martini (2012), Transparency International

In more recent years, aggressive anti-corruption tactics and legislative shifts have sought to stamp out corrupt practices, although many more still likely exist. Fast forward to 2019, Indonesia has issued a permanent moratorium on forest clearing permits in an effort to halt further deforestation rates. Skeptics argue, however, that such a moratorium is still insufficient to tackle the issue of deforestation unless further regulations are put into place to prevent redrawing of existing concession boundaries and to extend protection to current forests.

Ecological impacts

The rapid deforestation rate has also led to other serious ecological consequences. Transnational haze has become a regular occurrence in the region, as the loss of forest cover has made existing forest stands more vulnerable to dry spells and forest fires.

 

^{Source: Channel News Asia, Singapore.}

Biodiversity loss is at an all-time high in these forests, threatening charismatic species such as the Sumatran tiger and orangutans. These effects are likely to continue to threaten wildlife in the region, as forest fragmentation and edge effects continue to damage and shrink local species’ habitats.