Last Updated: Saturday 04 July 2015 | 02:50:09 AM

Sale Logged
Indonesia plans to impose a permanent ban on export of logs to save its forests. Over-logging has nearly destroyed the country's rain forests.

Realising this, it had imposed a ban on log exports in 1980 but later replaced it with a 200 per cent export tax to protect local industry and encourage exports of higher-value wood products. By 2000, this tax was reduced to 10 per cent in a pact with the International Monetary Fund (imf).

This time, however, cash strapped Indonesia may receive support from imf, with which it has a us $5 billion loan programme. Periodic disbursements are contingent on a batch of economic reforms being implemented across all sectors.

Environmentalists aver that illegal logging became more rampant after the government reduced its hefty export taxes under the imf agreement. They said illegal logging in Indonesia destroys some 60 million cubic meters of forest each year.

Subscribe to Weekly Newsletter :
We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.

Comments are moderated and will be published only after the site moderator’s approval. Please use a genuine email ID and provide your name. Selected comments may also be used in the ‘Letters’ section of the Down To Earth print edition.