This study explores the loss of state revenue due to illegal logging in Indonesia. Focusing on the estimated annual state loss of IDR 30.3 trillion due to illegal logging, the study underscores the importance of revenue transparency in the forestry sector to minimize potential revenue losses. The 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, the study shows that only 301 roundwood production sites in Indonesia are recorded as legal, while the remaining 701 are illegal. This study aims to provide recommendations for policymakers to support more transparent and accountable forest resource management.
This policy brief explores the potential for implementing EITI in Indonesia's forestry sector. For more information on the research findings and proposed policies, please visit the links below.
