Jakarta – Some banks in regencies have been involved in financing illegal logging, though the forestry industry has been regarded as a sunset industry and put in the negative list for the extension of bank credits, according to a researcher.

The Executive Director of Wana Aksara Research and Study Agency, Agung Nugraha, said further here Tuesday that besides giving contribution to illegal logging, banks in certain regencies have also served money laundering for funds derived from illegal logging.

From interviews, observation and investigation performed in a sub-district in Kota Waringin Timur regncy, Central Kalimantan province, the research and study agency has recorded some 1,500 units of trucks serving the transportation of illegal logs.

The agency has observed that most of those trucks belong to leasing companies and illegal loggers have leased the trucks with funds borrowed from banks, according to Agung Nugraha.

The very big profit offered by illegal logging has tempted banks to channel loans for the provision of equipment for illegal wood cutting and vehicles for logs transportation, especially with the support given by civilian and military officials, including the local elite, he explained.

Agung estimated that logs and sawn timber transported from the locations of those unlawful activities can reach about 4,000 cu.m. a day. With the assumption that the log average price Rp1 million per cu.m., illegal logging backed by banks and the local elite has inflicted a total loss of Rp120 billion on the state per month, he added.

Based on Wana Aksara Research and Study Agency's observation, 20 units of trucks have left illegal wood cutting locations in the forest every one hour.

They work 24 hours a day, except in Ramadhan Islamic fasting month and during rainfall.

Illegal logging has been prevalent in Indonesian forests since the beginning of the current reform period, according to Wana Aksara executive director. "It is ironic that about 40 percent of companies in the forestry industry are currently troubled by stagnation and 60 percent of those operating in the upstream forestry sector are on the brink of bankruptcy," he said

The intensity of illegal logging has begun down since the launching of the first and second Sustainable Forest Operation (OHL) by the Forestry Ministry.