“Wild Money”

Summary

Methodology

Recommendations

To the Government of Indonesia

To Indonesia’s Major Trading Partners, including China, Japan, Malaysia, South Korea, the United States, and the European Union

To Indonesia’s International Donors, including the World Bank, Australia, the European Union, and the United States

I. Background: A Brief Overview of Indonesia’s Forestry Sector

Decentralization of Forest Control

II. Indonesia’s Missing Timber

Wood Gap Analysis

III. Indonesia’s Missing Timber Revenue

West Kalimantan: A Forest-Rich, Revenue-Poor Province

IV. Anatomy of Corruption in the Forestry Sector

Corruption in Forest Management Agencies

Corruption within Law Enforcement

Corruption in the Judiciary

Illegal Logging in Ketapang, West Kalimantan

V. Forest Reform and Anti-Corruption Efforts to Date

The Anti-Corruption Commission: Progress and Threats

VI. Human Rights Impacts

Failures of Justice

Failures of Transparency

Funds for Essential Health Services Line the Pockets of Illegal Loggers and Corrupt Officials

West Kalimantan: Booming Forestry Industry but Lagging Health Spending

The Right to Health under International Law..

Equal Access

Women’s Right to Health

VII. International Ramifications

Enforcing Banking Regulations and Recovering the Proceeds of Corruption

The US Lacey Act

Voluntary Partnership Agreements with the European Union

Carbon Offset Markets

VIII. Appendix: Methodology for Estimating Timber Revenue Loss

Royalty and Reforestation Fees

Transfer pricing

IX. Acknowledgments