Antara & Fidelis E. Satriastanti – Indonesian Corruption Watch has estimated that the country suffers losses of around Rp 14 trillion ($1.6 billion) a year as a result of deforestation.

According to research conducted by the antigraft watchdog, deforestation during the 2005-2009 period totaled 5.4 million hectares, equivalent to Rp 71.28 trillion.

The ICW also urged the forestry minister to reform the forestry sector and address a number of weaknesses identified by the Corruption Eradication Commission (KPK).

In December the KPK announced that it had found 17 systemic problems in the implementation of forestry planning and supervision. Of the 17 problems, nine concerned regulations, three were institutional, four concerned implementation and one related to natural resources.

This, ICW said in its statement, indicated that there were serious problems in the management of the country's forests.

Hadi Daryanto, the director general of forestry management at the ministry, said his office would follow up on the reports if the data can be proven. "If they [ICW] can be objective by showing the exact locations or any proof of the violations, then the ministry will take legal action," Hadi said, while pointing out that the ICW report made use of old data.

Furthermore, he said the Forestry Ministry was working together with other institutions, including the police, the attorney general and the Environment Ministry to map forest-use violations in the country.

In 2009, a report by Human Rights Watch stated that corruption in the forestry industry cost the nation US$2 billion annually.