Rusman, Samarinda – A wooden vessel maneuvered to dock at a pier on Mahakam Ulu River, Kutai Kartanegara regency, East Kalimantan, the sound of its whistle wailing far and wide. Behind it, the vessel was pulling hundreds of logs that covered most of the 75-meter-wide river.

As soon as the vessel – unnamed but flying the national Red-and-White flag – moored, captain Hidayat, 41, and four crew members became engaged in negotiations with several timber dealers who had been waiting for them since morning. After bargaining heatedly, an agreement was reached and the logs changed hands.

The initial offer was for Rp 30 million per 125 cubic meters of assorted timber logs; the final price was Rp 50 million. Concluding the transaction, Hidayat and his crew promised to return to the same site with new logs, depending on the water level in the river. The Jakarta Post observed this transaction as it was taking place on the Mahakam Ulu in Sebulu, Kutai Kartanegara. The logs are illegal and are sold by locals to timber dealers from Samarinda and other East Kalimantan cities.

The illegal timber trade has been going on for the past few years. The logs come from trees felled by locals in forests stretching from the hinterland of Mahakam, Kutai Kartanegara, to West Kutai. The frequency of the illegal transactions depend on the level of water in the river: If it is high enough for log barges to pass, transactions can take place once a week; otherwise, they may be delayed up to a fortnight.

The transaction sites vary, but Sebulu is considered the safest because the local police have been bought. "We need to act cautiously only if we've received a police tip that headquarters will conduct an inspection," said one crew member.

Sebulu is only about 80 km – or half an hour's drive – from Samarinda. Parts of the road are paved and smooth, but most of it is in bad repair, and trucks carrying timber stand idle along its length, waiting for buyers. The trucks transport the timber to several cities, including Samarinda and Tenggarong, the capital of Kutai Kartanegara.

A transaction site is typically in a strategic location – that is, in a relatively deserted area so a timber dealer can process the logs on the spot into ready-to-sell beams. Locals rent chain saws at Rp 125,000 per cubic meter of timber.

In other cases, dealers rely on river transportation to carry the logs to timber mills along the Mahakam River. After the logs have been processed into ready-to-sell timber, they are transported overland.

Wahyudin (not his real name), 31, a timber dealer, said the illegal timber trade was highly profitable, although it carried a big risk with it. He makes a large profit and does not need to bother with the complicated process of obtaining a license; the risk is that he must be on his guard, ready to deal with the police at any time.

However, he said, it was very unlikely that he would have to deal with authorities: Bribery is the magic word. One police station receives Rp 5,000 for each timber truck that passes through their jurisdiction. In addition, he has ready money for policemen that make impromptu inspection along the way.

Wahyudin makes Rp 40 million in profit from every 125 meter cubic of timber he purchases.

"But remember, we must also prepare some money – it may be tens of millions of rupiah – to bribe the police just in case we get arrested," he said.

"Well, it often happens that we play cat and mouse with the police, quickly hiding our timber, especially now that the central government has ordered that illegal loggers and those involved in the illegal logging business must be arrested. We feel that we are being watched," he added.