Illegal Logging and Forestry Corruption: The Need for the Widescope Damages Approach

Almira Moronne

OVERVIEW

In 2007, the Corruption Court of Central Jakarta District Court issued verdicts in parallel cases against the Governor of East Kalimantan, the heads of the regional Forestry Department and regional Office of the Ministry of Forestry, and the owner of oil palm plantation concessionaire Surya Dumai Group for bribery and illegally clearing a forest area in relation to a proposed plantation project.[1]

The damage from the company’s conduct included lost timber revenues for the State and lost environmental services for the local community due to increased risk of flooding and erosion. The prosecution had requested a multiplier of the compensation award (IDR 346.8 billion) to account for the damage to the local environment, but the Court declined the prosecutor’s request on the grounds that the Corruption Law only authorizes penalties equal to the amount of bribes paid, plus compensation equal to the proceeds from the illegal conduct i.e., the value of the logs that were stolen from the State.[2]