FOREST LOSS OF INDONESIA

Indonesia forest loss!
We often discuss such damage or loss caused by fire, natural disaster, accident or whatever.Estimated expressed in millions, hundreds of millions or billions of dollars or dollars. Maybe we'll be surprised when he realized there was a priceless wealth has been lost from the forest.Losing this much talked about the value of money but not much talk about how many billions to be saved, protected, secured or preserved and saved? Not to mention calculating the economic potential of forests such as biodiversity and non-timber forest products in it, plus the value of forest services such as providing water, clean air, cultural and social values.

DISASTER floods and landslides, are now regularly visit us. Almost every year he comes. There is a small and has no impact on the community, but not a major disaster which claimed the lives and property. Disaster after disaster came and went, as he never tired of visiting our bersilaturrahmi. Today he came, tomorrow we forget lightning. Currently we cry, tomorrow we are going to cheer exploit nature for a moment to take advantage of it. The lives of innocent people, just disappear. While the dredge activity to the value of nature is kept surging everywhere. Greedy, which we view all this, is the mirror of our consciousness in a shallow understanding and treating nature wisely. Finally, the solution was offered by the authorities, is sedangkal their awareness of themselves and their environment.


In 1999 the World Bank estimates that lost government revenue due to illegal logging from taxes and duties losses reached U.S. $ 3.5 billion. The economic and financial experts to make provision for forestry in the year 2001-2002 that the missing money from illegal logging ranges between U.S. $ 4-5 billion or USD 34-42 trillion, in the first four years of the Reformation.Association of Indonesian Forest Concessionaires (APHI) estimates that in 2002, loss of forests each year is approximately U.S. $ 1 million due to illegal logging.

On the other hand, in the year 2003 ICEL estimated losses due to illegal logging activities is U.S. $ 670 million per year (voice work, August 14, 2003). In 2003 also INFORM (Indonesian Forest and Media Campaign) estimates that state losses due to lost income from timber product reached U.S. $ 5.56 billion, while lost in the form of taxes and non-tax reached U.S. $ 2.15 billion. We have six years had passed after the Reformation of this figure has increased again. According to final calculations INFORM, loss from illegal logging to reach USD 83 billion per day or Rp 30.42 trillion per year or U.S. $ 3.6 billion a year. And the government must pay the debt of U.S. $ 18-million a day or V20 USD 160-180 billion per day (2002 data).

Loss of timber-producing areas by very large. From East Kalimantan alone estimated loss due to illegal logging is Rp 856 billion a year (CIFOR, 2004). The province is estimated to lose USD 600 billion per month, or Rp 7.2 trillion per year (INFORM, 2004). A study conducted by the DFID (, em> Department for International Development) and FAO to the action of illegal logging in Indonesia revealed that the loss due to forest exploitation in Indonesia reached U.S. $ 5.7 billion per year from timber sales of 68 million illegal logging cubic meters valued at U.S. $ 4.08 billion. Then the remaining U.S. $ 1.63 billion of forest products tax (People's Mind, August 30, 2003).

Greenomics estimated that, if the Government Regulation in Lieu of Law (Perpu) No. 1 Year 2004, approved the 925 thousand hectares of protected forest areas will be damaged. Indonesia will experience a loss of Rp 46.4 trillion per year due to loss of economic value given forest ecological system if the government continues to issue 13 permits mining in the region. Value of losses is much greater than the state budget revenues in 2003 of the mining sector amounted to Rp 1.07 trillion. The loss does not include the value of the cut down trees to open up mining in protected forest areas. Value of timber felled in the area of 925 thousand hectares is estimated to reach USD 27, 5 trillion.

The figures above do not be true because rough estimates. There are many assumptions in it.Where loss occurs? Of the value of timber, reforestation fund (DR), Forest Resource Provision (PSDH), taxes, fees and others that have not paid. What is the cost of implementing illegal logging operations? No one can measure with certainty. There are operational costs in the field, plus expenses for the transaction costs (bribes, corruption, paid thugs, etc.) and transportation costs. Who wants to count? What courage?

If the illegal timber should not be subject to tax. But there are areas of retribution fee. He said for decentralization and reform. What about the cost of exports and export taxes? How to deal with customs? It is not clear. Is illegal employers of illegal logging and sawmill (sawing wild) fortunate? Of course no one wants to lose. Production costs and transaction costs charged to the forest resource itself. Therefore extraction done with ferocity. Moreover, law enforcement is not clear.

2003 years ago a district in Jambi have accumulated revenue of USD 7.2 billion in one year.Whereas the maximum revenue target is Rp 4.3 billion dollars based on the extent and potential production of wood from forests that remain. How much of Forest Resource Provision (PSDH) and the Reforestation Fund (DR) that are collected? What about the levy and other taxes? PAD revenue numbers for this raised suspicions because the actual forest conditions do not allow acceptance of the PAD. Is it possible there PAD illegal?

For the year 2003 alone the cost of rehabilitation for the project GNHRL 300.000 ha of damaged forest in 29 watersheds (watershed areas) the most critical in Indonesia the government announced a budget of Rp 1.27 trillion, or roughly U.S. $ 150 million. To seed just budgeted USD 300 to 400 billion. To rehabilitate 3 million hectares of forests over the next five years the government will allocate Rp 15 Â ¡V 17 trillion, or between U.S. $ 1.8 to 2.2 billion. Compare this with the loss of forests is U.S. $ 3.6 billion a year, or Rp 31 trillion and the total area of damaged forests has reached 40 to 75 million hectares.

If forests are damaged 50 million hectares, which will be rehabilitated and it is assumed that the same cost per unit area without inflation and the fluctuation of the rupiah against the dollar it costs needed is Rp 212 trillion, or nearly reached U.S. $ 25 billion. This country would theoretically take 167 years for the rehabilitation of 50 million hectares of forest. The assumption again if the forest had not been cleared to be rehabilitated back, there is no encroachment. Also there is no population pressure, there is no fire, no reforestation funds are used for sports or making a plane and there is no corruption, and so on. And also the assumption is that rehabilitation is only held by the Ministry of Forestry with the allocated budget through the National Movement for Forest and Land Rehabilitation (GNRHL).

Management of the state budget shows that most projects actually allocate funds for the physical project itself between 40 to 45 percent of the total value of the project. The other is used for taxes (VAT and Income Tax 11.5 percent), corporate profits (10%) and transaction costs (30 - 40%). If this happens then we need the funds from 2.3 to 2.5-fold and the time between 340 to 420 years. Data supported the rehabilitation without a clear and accurate planning and budgeting as well as professional and mature results will be worse than the movement of projects and programs and reforestation, afforestation and soil conservation. We need to find a mechanism that is more conducive, cheaper and involve extensive public to use the approach to rehabilitation, including social forestry or forest management with communities, especially to the taxpayers which is actually a farmer.