Abstract

The President has encouraged KPK to calculate state losses in the forestry sector, examine the systems that allow such losses to occur, and coordinate efforts to fix these systems and improve revenue collection. This study estimates the loss of state assets from unreported timber production and the under-collection of non-tax forestry revenues during the period 2003–2014. The study analyzes the weaknesses in the Government's administrative systems for overseeing timber production and for collecting non-tax forest revenues, and then provides recommendations for how these systems should be strengthened and revenue collection improved. This study will provide the basis for KPK to coordinate an inter-ministerial reform initiative to improve state administration of Indonesia's forests for the benefit of the country.