ILLEGAL TIMBER SEIZURES IN INDONESIA

UNCLAS SECTION 01 OF 02 JAKARTA 001016

SIPDIS

DEPT FOR OES AND EAP
USTR FOR DBROOKS
USAID FOR ANE, EGAT
BANGKOK FOR RDMA
USFS FOR CMACKIE
TREASURY FOR KBERG

E.O. 12958: N/A
TAGS: SENV EAID KGHG ECON PGOV ID
SUBJECT: ILLEGAL TIMBER SEIZURES IN INDONESIA


1. Summary: Recent seizures of suspected illegal timber in East
Java and Papua highlight the continued challenge of illegal logging
in Indonesia. The USG continues to support the Government of
Indonesia's efforts to tackle the problem through capacity building.
This support includes an upcoming illegal logging/timber training
workshop which the U.S. Customs and Border Protection agency will
conduct in mid-July for Customs officials in East Java, using funds
set aside under the bilateral U.S.-Indonesia MOU on illegal logging.
End Summary.

Surabaya: Customs Seizes Suspect Timber
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2. On May 15, Customs officials in Surabaya reported to the
provincial parliament that they had seized 190 cubic meters of
merbau wood being transported in nine containers. Officials said
the timber, valued at up to USD 190,000, was being exported to
China. The Tanjung Perak Port Custom Office's Head of Investigation
and Services, Choirul Saleh, said that his office seized the
containers because they found discrepancies between the wood and
accompanying documents. The exporter, PT. Surabaya Trading and Co.,
claimed that the wood would be used as building parts for a bridge,
and that state-owned company PT. Sucofindo had surveyed and
certified the timber.


3. On May 26, East Java parliament summoned Sucofindo, Tanjung
Perak-Surabaya Customs, the East Java Office of Trade and PT
Surabaya Trading and Co. to provide more information about the case.
At the meeting, Saleh stated that his office had asked the East
Java Office of Trade whether the shipment's documentation satisfied
regulatory requirements. Saleh said he is awaiting a response
before taking further action.

Papua: Hoard of Timber Found
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4. On June 1, the Asmat Indigenous Community Association (LMAA) of
Asmat Regency, Papua Province, discovered an abandoned stockpile of
approximately 20,000 merbau logs. The logs, with diameters ranging
from 70-100 centimeters, were located on communal lands
approximately 9 hours from the nearest town. LMAA suspects that the
logs were felled illegally. Besides the logs, LMAA also found heavy
equipment, including a bulldozer, backhoe, ten trucks, 8 storage
tanks containing 20,000 liters of fuel, and electric generators.
The group did not find any workers at the location, and LMAA Vice
Chairman Anandus Anakat opined the workers ran away because the
suspected company (PT. Rimba Megah Lestari-RML) mistreated them.


5. The Regent of Asmat, Yuvensius Biakai, claims he never issued a
forest concession permit (HPH) in his district. However, District
Police Chief Adjunct Commissioner Mursalim admits he provided police
protection in 2008, upon instruction from his superiors, to a
transport vessel bringing heavy equipment to the location. Asmat
Regency's Forest Office Head Ellias Bapaimu confirmed that PT. RML
had been operating in Asmat but did not know who issued its
concession permit. He revealed PT. RML had been unable to remove
the logs because the Governor of Papua issued a decree in 2007
banning log exports from Papua Province.

Merbau: Attractive and Endangered
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6. Merbau (species Intsia bijuga and Intsia palembanica) is a
slow-growing timber species that takes 75-80 years to reach
commercial size. It is highly sought after and is threatened by
destructive and illegal logging. Indonesia is in consultations with
other countries in Southeast Asia to consider listing merbau under
Appendix III of the Convention on International Trade in Endangered
Species' (CITES). This means Indonesia would require export permits
for merbau from Indonesia, while other States would at least have to
provide certificates of origin for their merbau exports. The tree
is highly sought after and is mainly sourced from Southeast Asia, in
particular Papua and Papua New Guinea.

CBP to Train Customs Officials
--------------

7. The U.S. Customs Border Protection (CBP) will conduct a training
workshop on July 13-17, 2009 for Indonesian Customs officials in
Surabaya, East Java. The workshop is one of the final activities
funded from the original USD 1 million set aside for cooperative
activities under the U.S.-Indonesia MOU on Combating Illegal Logging
and Associated Trade (2006).


JAKARTA 00001016 002 OF 002


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