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State losses from forestry reaches Rp 60 trillion
A forest was recently cut down in Kutai Kartanegara regency in East Kalimantan for a oil palm plantation
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A forest was recently cut down in Kutai Kartanegara regency in East Kalimantan for a oil palm plantation. (Kompas/Iwan Setiyawan) (Kompas/Iwan Setiyawan)
A forest was recently cut down in Kutai Kartanegara regency in East Kalimantan for a oil palm plantation. (Kompas/Iwan Setiyawan)
State losses from potential non-tax state revenues in the forestry sector between 2003 and 2014 have been estimated at Rp 60 trillion (US$4.48 billion), according to a study by the Corruption Eradication Commission (KPK).
"According to the study from KPK's research and development [division], the state losses in round wood production, which are still in the forests so that the value is still there, reached Rp 5 trillion per year for 12 years," KPK deputy head Zulkarnain told a press conference in Jakarta on Friday as quoted by Antara news agency.
Zulkarnain said that the number was based on the calculation that all forestry products can be collected and it showed the necessity to establish a non-tax state revenue (PNBP) system to prevent illegal logging.
He added that if PNBP from forestry was not managed properly, the risk was high, including intentional forest fires.
"In the last ten years, there has been a sharp increase in the opening of land due to palm industrial timber plantations (HTI) and mining. We [will] focus on PNBP and its management," said Zulkarnain. (kes)
