The deforestation problem in Indonesia is spreading. Illegal and destructive logging is a major cause. In addition, conversion of forest areas for the development of oil palm and the pulp and paper industry has been substantial. Since the beginning of this decade, as much as 2.8 million ha of Indonesia’s forests have been lost each year to illegal and destructive logging. This has led to US $4 billion or 40 trillion rupiah in losses to the State per year.
If we put two and two together, forest conversion and the pulp and paper industry are also causal factors in the rising rate of deforestation. We know that some 15.9 million ha of natural tropical forest has been cleared for forest conversion.
The conversion of forests for oil palm development is a contributing factor to the increase in deforestation in Indonesia. From being prime land, 15.9 million ha of natural tropical forests have been cleared.