BEHIND THE VENEER "By far the most valuable timber in the Papuan forests is merbau (Intsia spp.).

A dark, luxurious, red wood, merbau is primarily used for the manufacture of
‘exotic’ hardwood floors, which can command prices of up to $138 per square metre."
ILLEGAL LOGGING, ENVIRONMENTAL CRIME & CORRUPTION ht tp://www.eia-inte rnat ional.org/file s/reports117-1.pdf

TIMELINE Log Exports Banned 2001 EIA Report Released Logs sell for $278 each Crackdown on illegal logging EIA/Telapak investigators interview Lee Ah Keat EIA/Telapak undercover investigators v isited Seng Fong EIA/Telepak Investigators interv iew Titin Siswadi EIA/Telepak information Logs sell for $732 each Loggers buy back logs at auction 1000 logs seized in Bintuni
In February 2005, EIA/Telapak released a report, ‘The Last Frontier’, which In February 2005 logs were Indonesian President Susilo Bambang Yudhoyono responded with a crackdown on In August 2005, EIA/Telapak investigators manufacturer In August 2005 EIA/Telapak undercover investigators visited Seng Fong’s EIA/Telapak undercov er investigators visited Kreasi in August In August 2005 undercover EIA/Telapak October 2005 logs were selling In December 2005 the National Police Chief admitted In February 2006 1000 illegal
Ban on log exports enacted in 2001. exposed rampant illegal logging in Indonesian Papua and documented the mafia changing hands in China for as illegal logging of unprecedented scale. The enforcement operation in Papua resulted Kim Teck Lee Timber Flooring Sdn.Bhd.(KTL), which large factory in Java. The owner, Mr Goh, and his colleague Ms Lin explained 2005 and met marketing executive Ms Titin Siswadi, who investigators contacted the head offic e of that evidenc e existed showing that the companies logs were seized from a
for up to $732 in China.
syndicates smuggling 300000 cubic metres of stolen merbau logs out of the little as $278. in the seizure of more than 400000 cubic metres of stolen logs and sawn timber, plus manufactures all of Junckers’ merbau flooring. KTL’s that, far from having a legal chain of custody, Seng Fong’s merbau is bought confirmed that around a tenth of their 5 million square metre the company’s flooring arm and requested from which the logs were originally seized had in many company in the district of
2001 province every month. The logs, accompanied with false paperwork, were a host of trucks, ships and logging equipment.(8) More than 170 marketing director Mr Lee Ah Keat revealed how the on the spot market from traders who bring logs in from Papua province, so annual output was merbau, and that the company supplies information about their merbau range. October 2005 cases managed to buy them back at artificially Bintuni, which police claimed
February 2005
departing aboard fleets of giant cargo vessels, in violation of a ban on log people were arrested, including polic e, army and forestry officials. company supplies about 23000 square metres of merbau the company cannot say for certain where the timber was cut or if it was Armstrong. Marketing manager Carsten Bertelsen deflated prices. had been regularly shipping
exports enacted in 2001. Most of the timber was going to feed China’s mammoth flooring a month to Junckers, and that eighty to ninety legally sourced. Indeed, Ms Lin admitted that ‘… in Indonesia if you really subsequently emailed a copy of an FSC logs illegally to Java between
December 2005
wood flooring industry. The report also revealed the central role of the Altogether, timber and equipment worth almost a quarter of a billion dollars was per c ent of the merbau used originates in Indonesia. Lee want sustainable forest or certification it’s not possible. It just isn’t.’ Ms Lin She stated that all of Kreasi’s merbau originates as logs from chain-of custody certificate verifying that September and December of
Indonesian military in the timber theft and the intimidation of Papuan communities confiscated, and the impacts of the enforcement operation in Papua were felt in explained how he sourced the Indonesian wood through also told investigators that Seng Fong had recently paid bribes to Indonesian Papua, whic h it buys on the spot market from middlemen for the company is qualified to handle FSC the previous year.
trying to protect their lands.(7) timber markets agents in the town of Surabaya who in turn purchase navy offic ials to secure the purchase of 10000 cubic metres of illegal merbau shipment to their factory in Java. EIA/Telapak later doc umented wood, and stated that ‘our products – sold
February 2006
around the world. wood on the open spot market. logs being sold at auction. She said such ‘under the table payments’ often a barge loaded with Papuan merbau logs at Semarang port in under the chain of custody certificate – Marketing
February 2005 email supply
‘cost more than the logs’. Nevertheless it was good business, since the bribes Java, which dock workers stated were owned by Kreasi. contain minimum 70 % FSC certified raw Manager
March 2005 August 2005
had ensured the agreed price of the logs was only $90 per cubic metre – less Ms Titin explained how Kreasi buy about 3000 cubic metres of material, and the remaining 30% are from Carsten Bertelsen THE HOME DEPOT
than half their true value. merbau logs from Papua every 6-8 weeks, equivalent to around controlled sources. Our merbau is sourced
24000 cubic metres per year. from Temenggor lake in Malaysia. We can
ensure [sic] you it is from controlled
She admitted on camera that the company could not know sourc es’. stated source
TEMENGGOR LAKE: THE BOTTOMLESS ‘SUSTAINABLE‘ MERBAU SUPPLY precisely where any of the company’s merbau was harvested, supply
interviewed of supply
or be sure it was legal – directly contradicting claims Armstrong’s
ALLIED CARPETS Temenggor Lake
Chief Executive later made to EIA.
August 2005 TARKETT
Two of the largest merbau flooring suppliers, Kahrs and Tarkett, have both claimed to buy much of their merbau raw material from Hea dqua rte re d in Ge rma ny , Tarke tt
trees which lie underwater in an artificial lake created as part of a hydroelectric project. colleague
are the second largest wood flooring
compa ny in t he world and the large st stated 36%
interviewed supply in Europe with global sa le s of $329
source of supply
million in 2004
They give this as evidence that their merbau is legally sourced. The lake in question is at Temenggor in Peninsular Malaysia, Mr GOH Europe Numerous
and it is true that in the past a small quantity of old merbau logs were being cut by divers at the lake each year. But the amount Ms LIN
A ugust 2005 Leroy Merlin Retail Outlets
POINT P supplies
of timber involved is far too little to meet the combined demand of these two giant flooring suppliers, while recent revelations have A ugust 2005 O wn e r

shown that even some of this timber is likely to have been illegally sourced. Seng Fong admitted to paying bribes supply alleged to have approached
Marketing
to officials in June 2005 to obtain Tanjung Kreasi to manufacture supply
Executive
10000 cubic metres of seized on their behalf
In April 2005 investigations by a Malaysian newspaper exposed how the two companies licensed to log the underwater trees at illegal merbau logs at auction.
A ugust 2005
PT Tanjung Kreasi Parquet Industry Web Based D istributors
Indonesian owner
Temenggor were responsible for rampant illegal logging of merbau trees in the protected forests adjacent to the lake. Malaysian forestry Naval Offic ers
A ugust 2005
Supply to 45 countrie s
3, 000 tonne s supplied t o KAHRS in Europe and North America
officials confirmed the claims, and subsequently refused to renew the licenses of the two companies for logging at the lake.The last of Soboplac US in f irst t en mont hs of 2005
supply own
these licenses expired at the end of May 2005 and since then no legal merbau has been sourced from the area. Ms Titin Siswadi brand
supply

formerly supplied shipped to

supply
Both Tarkett and Kahrs continue to sell merbau flooring, though the only source of raw materials they can point to – dubious as it already by C hinese supplier
BRAND
was – has now dried up entirely. interviewed Chinese PT Seng Fong Mouldings Perkasa
Supplier
Goodfellow Inc
sighted
supply Factory in Java
Teka Armstrong World Industries Inc.
supply
shipped to own
brands
Stated KTL purchase
materials from Papua sighted JAVA BRANDS

stated
Bruce Robbins Hartco
Semarang Port Barge loaded with logs
shipped to JAVA Sept ember 2005
Logs purcha se d on spot marke t
Papua
Unknown
supply
JOHN LEWIS
supply
J anua ry 2006
colleague

shipped to
supply
JEWSONS
LOWE supply

Web Based
supply
Distributors
A ugust 2005 A ugust 2005

Marketing manufacture merbau

supply
Director flooring for
Kim Teck Lee Timber Flooring Sdn Bhd (KTL) TRAVIS PERKINS
Junckers Industrier A/S
Danish company Juncke rs a re t he f ourt h
80-90% is bought on the large st wood flooring company in the world. supply
Europe ’s la rgest manuf acture r of solid hardwood
spot market in Indonesia
flooring, and De nmark’s biggest wood proce ssing Numerous
and cannot be traced to source.
INDONESIA company . The company sold €91 million of wood Independant
owned by flooring in 2004, a signif icant proport ion of it Retail Outlets
ht tp://www.eia-inte rnat ional.org/file s/reports114-1.pdf Lee Ah Keat merba u.
A ugust 2005

Indonesian Merbau to China Forged Malaysian Certificate

In February 2005 EIA/Telapak revealed how as m uch as 300 000 cubic m etres of merbau logs w ere being sm uggled
of Origin for Indonesian logs
from Indonesia’s Papua Province to China every month in large cargo vessels, in contravention of the country’s 2001 shipped to Vietnam "Jan 2004"
Malaysian
ban on log exports. Factory

EIA/Telapak undercover investigations revealed how a netw ork of middlem en and brokers from Singapore, Malaysia
Analyst: Tim Green , Visual Analysis Every effort has been m ade to maintain the accuracy of the chart This chart has been produced through the application of the international
and Hong Kong were masterminding the billion-dollar trade, reckoned to be the single largest illegal tropical tim ber trade
Date: 21st March 2007 representation from the open source information but we cannot recognised intelligence m ethodology of Anacapa Sciences Inc. and use seen in KTL’s
route in the w orld. The logs carried forged M alaysian documents and w ere mostly destined for Zhangjiagang port near Malaysian fac tory .
accept responsibility for any loss or dam age which may occur from of the world's standard data visualisation tool IBM i2 Analyst's Notebook.
Shanghai. Nearby flooring factories were processing one merbau log every w orking m inute. Updated: 24th March 2012
use of the information.
Version: Version 1.2 Data 2007 Anacapa Sciences provides the technique and fram ework to provide
Indonesia responded w ith a massive enforcement crackdown, seizing m ore than a quarter of a billion dollars’ worth of Source: TELEPAK; EIA meaningful data description and facilitate effective analysis.
Visual Analysis does not provide quality control of the external
stolen tim ber and logging equipment and arresting 173 people, including corrupt officials and M alaysian nationals.
Open Source Information open source information. The inclusion of any person or business
Illegally ex ported rough
nam e within the chart should not be construed or assert that any IBM i2 Analyst's Notebook is the recognised standard investigative tool sawn Indonesian merbau
The flow of illegal m erbau has drastically reduced as a result and merbau prices have skyrocketed w orldw ide. Though that allow s analysts and investigators to visualise patterns and trends
person or organisation depicted are involved w ith criminal incidents.
the use of false paperwork was violating Chinese law s, no equivalent enforcement response was seen in China. On the within data in order to provide actionable intelligence to decision makers.
tw o occasions in which specific intelligence on illegal m erbau log vessels was provided to the Chinese authorities no (c) Visual Analysis 2012 This chart is intended only to visualise connections within the A ugust 2005 A ugust 2005 A ugust 2005

selected data.
seizures resulted.