Ahmad Maryud is a lecturer at the University of Gadjah Mada and a PhD candidate at Goettingen University, Germany. This is a personal opinion.

If you had the chance to see the documentary movie “Timber Mafia” released by Journeyman Pictures in 2002, you would have some idea of the massive scale of illegal logging in Indonesia.

Although efforts have been made to crack down on illegal logging in Indonesia, it appears the problem is getting worse. It is hard to get accurate data on its magnitude, because there are no accurate records on it.

Estimates indicate that approximately 70 percent of timber sourced from the country is illegally harvested, amounting to a massive 50 million cubic meters. A high-ranking government official said the annual loss from illegal logging accounts for between US$600 and $1,500 million.

This accounts for over 1.5 percent of the country’s gross domestic product, as much as the contribution of “legal” forest products to the GDP. This loss is only assessed on the royalty that would have been paid if the timber had been legally harvested. Therefore, the total financial loss is much larger.

What are the underlying causes of illegal logging and how can we deal with it? Some analysts have mentioned market failure as a main cause. Markets for illegally-logged timber are so widely available, even in environmentally-concerned regions, that the legal markets can hardly function alongside the illegal ones!
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