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Country Profile: Indonesia

Overview of Forestry and Trade in Indonesia

Indonesia’s tropical rainforests, the largest and richest in Asia, are being lost at the alarming rate of over 3.5 million hectares (almost nine million acres) per year - the equivalent of more than 500 soccer fields per hour. Much of this loss is driven by demand within Asia for timber and pulp.

Around two-thirds of the logging in Indonesia is illegal. Estimates suggest that 300,000 cubic meters of timber are smuggled from Indonesia every month, much of which is destined for Asian (China and Japan) and European markets. Some projections anticipate the global rates of wood consumption may nearly double by 2050.

There is an emerging momentum for change in Asian wood markets due to shifts in business practices and government policies. In North America and Europe, markets already favor environmentally friendly forest products. This has a major impact on suppliers. To increase competitiveness, forest products companies are making voluntary investments to improve forest management.

Certification in Indonesia

There are two systems that work together in Indonesia, Forest Stewardship Council (FSC) and The Indonesian Ecolabeling Institute (LEI).

Illegal Logging in Indonesia

Illegal logging is believed to be the major cause of deforestation in Indonesia. Corruption at all levels, weak law enforcement, and growing demands on and over-capacity of the timber industry are only some of the most significant causes of illegal logging in this country.

The decentralization of the Indonesian government also contributes to the problem since definitions of what is legal in a district context may be illegal in the national context.

For more information on illegal logging and initiatives to combat illegal logging  in Indonesia, see the following websites: