Roadmap to EITI Forestry Sector

This study explores the loss of state revenue due to illegal logging in Indonesia. Focusing on the estimated state loss of IDR 30.3 trillion per year due to illegal logging, this study underlines the importance of revenue transparency in the forestry sector to minimize potential loss of state revenue. This study highlights the role of the Extractive Industry Transparency Initiative (EITI) scheme as a mechanism that can help reduce state revenue leakage and improve forestry sector governance.

This report is part of a study conducted by Article 33 Indonesia to map strategic issues related to forestry sector governance. Based on data on legal and illegal timber production, this study shows that only 30% of roundwood production in Indonesia is recorded as legal timber, while the other 70% is illegal timber. This study aims to provide recommendations for policy makers in supporting more transparent and accountable forest resource management.

This policy note explores the potential for EITI implementation in Indonesia’s forestry sector. For more information on the research findings and proposed policies, please visit the links below.

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