 Environmental
Investigators Reveal Role of Malaysia in Global
Illegal Trade in Endangered Indonesian Timber
Environmental Investigation
Agency
The Environmental Investigation Agency (EIA) and Telapak have exposed
the existence of a major smuggling syndicate based in Malaysia which is
illegally trading tens of millions of dollars worth of protected Indonesian
timber around the world.
A new report released by EIA/Telapak entitled “Profiting From
Plunder”, details how endangered ramin wood from Indonesia, which
is banned from international trade, is smuggled from Sumatra by sea to
the Malaysian port of Pasir Gudang, in the state of Johor Baru. There
the sawn timber is dried and given false certificates of origin, before
being loaded into containers and shipped to Hong Kong and Shanghai. Once
in China most of the ramin is manufactured into finished products such
as picture frames and pool cues and exported to markets including the
US and Europe.
Posing as timber buyers EIA/Telapak investigators penetrated the hub
of the smuggling ring at Pasir Gudang port. Stacks of ramin were observed
drying prior to shipping, and port officials said that every month around
4,500 cubic metres of illegal Indonesian ramin passes through Pasir Gudang
en route to China. The amount of sawn ramin timber passing through this
single port exceeds Malaysia’s domestic sawn ramin production of
around 40,000 cubic metres a year. With illegal ramin logs selling in
Sumatra for as little as $20 per cubic metre, compared with a price of
around $700 for sawn ramin in Peninsular Malaysia, the profits for the
smugglers are huge.
The new evidence from EIA/Telapak comes on the eve of a major international
conference – the Convention on Biological Diversity, which is being
hosted by Malaysia. One of the key issues at the meeting is safeguarding
protected areas, such as Tanjung Puting National Park in Indonesia, which
is being illegally logged for commercial timber species including ramin
The Indonesian government recently revealed that illegal logging across
the country has pushed the rate of deforestation up to 3.8 million hectares
a year, the worst in the world. This has dire implications for ecological
security and Indonesia’s priceless biodiversity, such as the highly
endangered orangutan.
Indonesia has patently failed to tackle the illegal logging crisis. The
vast majority of illegal ramin coming out of Sumatra is believed to be
controlled by one man, nicknamed “Jambi Lee”, who like other
timber barons across the country can operate with impunity due to endemic
corruption.
Yet the problem is being exacerbated by the key role played by neighbouring
Malaysia in laundering stolen Indonesian timber onto international markets.
Evidence contained in the report shows how the logging town of Sibu in
Sarawak relies on illegal ramin from Indonesia to manufacture products
for the markets of the US and Europe. The ramin trail is symbolic of a
huge illegal trade in timber from Indonesia to Malaysia, with the connivance
of the authorities on both sides of the border.
Julian Newman of EIA said: “EIA and Telapak have been documenting
the flow of illegal timber into Malaysia since
2000, yet despite the introduction of new regulations
the country’s wood industry has not cleaned
up its act. The ramin case is particularly damaging,
as it shows Malaysia to be willfully undermining
an international convention. We are asking consumers
not to buy any ramin products and for customs
authorities to be especially vigilant in checking
ramin shipments from Malaysia.”
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