Eradicating Corruption in Forest Sector for Better Future: Study Case in

Riau Province
By Rickfan Wijaya
What does Corruption mean?
Corruption, a single word that people always heard as a terrible word, especially for
Indonesian as a country which has overflow resources. Citizens think corruption is bad for
economy and environment, therefore it’s true. According to Department for International
Development UK Aid, corruption can be defined as collective rather than simply individual,
going beyond private gain to encompass broader interests and benefits within political systems.
If corruption can be linked to political systems, it means someone who experts in politics is
perpetrator, or politician itself.

The common categories of corruption are consist of bribery, embezzlement, facilitation

payment, fraud, collusion, extortion, patronage, and nepotism. A study from Interpol about
corruption in the forestry sector concluded bribery as the most common form of corruption
forestry sector, and least common are following by fraud, abuse of office, extortion, cronyism,
and nepotism. The main causes of corruption are commonly caused by political powers,
bureaucratic, and weak law enforcement. The combination of politics, bureaucratic, and law
are the best pattern to make corruption untouchable because it commonly involves government,
politicians, senior civil servants, or elected public holders.

As the biggest archipelago country in the world, Indonesia has large forests with lots of
potential to be used and making Indonesia is good at forestry industry, not only for export issue,
but creating Indonesia as the ‘lung of the world’. But, for decades, started from 2009 until now,
citizens are suffering because of illegal loggings and land fires. Not only affect economy, but
also citizens’ health. And for ten years, Indonesia always get problem because of smog,
particularly Riau province. The question is, ‘Are the illegal loggings and smog at Riau really
caused by natures or weak governance that refers to corruption?’

Potential Forestry Industry becomes Most Corruption Industry in Riau Province

Forestry sector is vulnerable to corruption since many forest are located in jurisdiction
with weak governance, law enforcement, and poor policy to protect forest. In fact, that happens
to Riau province. Located in the middle of Sumatra Island, far away from capital city, Jakarta,
making Riau do not get special intention from agencies. With lots of potential monetary of
forestry industry and weak governance, Riau is being great place for corrupt practices to
encompass private gain.

In 2000s, Riau government allowed company to get license to clear forest legally for
its own business. However, company had to agree with terms and condition, (1) company only
could clear forests fit with its license (2) company had to commit to maintain sustainability of
the forests. Company strictly had to follow Government Regulation 26/2008 to strongly
prohibited not cleared natural resources for any reasons.

A wood supplying subsidiary of Asia Pacific Resources International Limited (APRIL),

PT Riau Andalan Pulp & Paper (RAPP), got legal annual cutting license (RKT) to clear forests
on Kampar Peninsula, Riau. RAPP already being in pulp business for 17 years and having
access to pulpwood supply more than 10% of Riau province’ landmass. RAPP and APRIL
were dedicating to always maintain and having commitment to sustainable and free of natural
forest woods. Therefore, after 3 years operation, RAPP’s commitment was pure for sales talk
to public. Yet, despite of RAPP’s commitment to public, one of the coalition of environment
NGOs in Riau, Eyes on Forest (EoF), reports its finding about RAPP operations. EoF strongly
believed that RAPP already cleared 74.099 and 71.125 hectares of natural tropical forest,
respectively, cleared tropical foret with an average yield of 118 and 90 m3/ha, and lastly,
harvest 8.5 and 6.3 million m3 of mixed tropical hardwood. EoF’s findings were appropriate
evidences that RAPP have cleared natural forests inside ‘National Protection Areas’ and
violation of Government Regulation 26/2008.

This findings were strongly supported by a mosaic of Landsat images that acquired in
2008 and 2009. The image showed 140.000 hectares of the natural forest were loss that made
by RAPP for years (Appendix 1). Despite of total natural forests were loss and finally RAPP
was violence against the law, where is the government as the regulators who gave the license
and first party to stop their operations for 3 years? RAPP and APRIL were knowingly and
consciously pulped natural forests through corrupt practices. APRIL got licenses from heads
of Siak and Pelalawan district, the government who authorities of Kampar and Peninsula.

RAPP was not the only one company who got authority to clear forests through corrupt
practices. According to Badan Reserse Kriminal Polri (Bareskrim Polri), 24 corporates are
being defendants of land fires and illegal loggings. The pattern is simple, corporates get license
from government through bribery, corporates got the license, and corporates did illegal logging
and burned lands for saving costs. And every years, Riau always has same problem that are
smog and land fires issue through corrupt chain.

Implications Forestry Corruption for Society

The action of RAPP that clearance of natural forests in Kampar and Peninsula has made
widely social conflicts between local communities and RAPP itself. The issue was similar with
other forestry corruption cases, loss of control over forests that already owned traditionally and
degradation of natural resources. Local communities believed and worried about the operations
can caused flooding and sea water intrusion, which not well for local people and sustainability
of the area next to local people. Natural forest clearance of the company’s operations eventually
lead to the collapse of the whole peat ecosystem and contribute more than 50% towards
Indonesia’s 26% reductions goal of reducing emissions gas.

Besides making social conflicts amongst local communities, corrupt practices

commonly affect economy sector. In 2015, because of bribery in a forest conversion case, Riau
losses Rp5 billion (US$375.460) from one corruptor, Annas Maamun, who suspended Riau
Governor. Therefore, Faculty of Law of University of Indonesia states study report that
potential loss of illegal loggings and forestry corruption is Rp687 billion bigger than KPK’s
calculations, Rp519 billion. It means that potential losses from corrupt practices in forestry
industry are substantive and material.

Hope for the Future

Many politicians and elected public holders are involved in corrupt practices. Only from
one company, such as RAPP, citizens are suffering in health issue, sustainability issue, and
economy issue. There are 23 companies that have similar case like RAPP. Weak governance
and law enforcement has been disaster for Riau for years. For the future, people are hoping law
agencies and KPK as the authorized agencies to eradicate corrupt practices. KPK needs to
collaborate with local communities, such as EoF or NGOs to help KPK in providing findings
of misleading practices of loggings. Last but not least, by collaborating from many agencies, I
believe we can stop corrupt issue for better future and maximize forestry industry in right way
and policies.
References :

Ali, Made. 2013. Korupsi Hutan Alam Riau, Negara Rugi Rp687 trilliun.
https://www.mongabay.co.id/2013/08/24/korupsi-hutan-alam-riau-negara-rugi-rp687-triliun/

Dipa, Arya. 2015. Court sentences Riau governor to 6 years in prison for corrupt.
https://www.thejakartapost.com/news/2015/06/25/court-sentences-riau-governor-6-years-
prison-corrupt.html

Amin, Al. 2015. Satu Perusahaan Jadi Tersangka Kasus Pembakaran Hutan dan Lahan.
https://www.merdeka.com/peristiwa/satu-perusahaan-jadi-tersangka-kasus-pembakaran-
hutan-dan-lahan.html

Eyes on the Forest. 2012. Asia Pacific Resources International Limited (APRIL). Investigation
Report: Riau

Interpol. 2016. Uncovering the Risks of Corruption in the Forestry Sector. NORAD

Department for International Development. 2015. Why Corruption Matters: Understanding

Causes, Effects, and How to Address Them: Evidence Paper on Corruption. England.
Appendix:

Figure 1. APRIL wood suppliers’ concessions and loss of natural forest between 2008/2009 and
2011 in Riau Province, Sumatra. Concessions with red boundaries and (*) continued to clear
Natural forest after 2009 based on annual cutting licenses (RKT) and Landsat image analysis.