Presentation by Anna C. Sinaga, Sofi Mardiah, Center for International Forestry Research, Follow the money: An integrated law enforcement approach to combat Illegal logging in Indonesia, International Conference, Objective: Following the Proceeds of Environmental Crime: Fish, Forests and Filthy Lucre, Wollongong, February 23, 2010

1. "Follow the money" An integrated law enforcement approach to combat Illegal logging in Indonesia Anna C. Sinaga, Sofi Mardiah Wollongong, February 23, 2010

2. Summary Impacts of illegal logging The current law enforcement approach Proposed law enforcement approach: Follow the money Recommendations

6. Current law enforcement approach Does not fully recover the state loss of forest revenue - maximum fine is US$ 1 million Fails to address corruption associated with illegal logging Jakarta, June 5 (ANTARA): Forestry Minister MS Kaban said judicial officials should treat illegal logging cases as corruption cases because the practice causes losses to the state. "I hope illegal logging will be classified as corruption because it causes losses to the state. So far, judges always link illegal logging to technical and administrative matters. This is not right because illegal logging causes losses to the state”. (2008)

9. Neglected to plant oil palm after land clearing

11. Received 4-year prison sentence

12. Fined of US$ 20,000

13. The use of Anti Corruption law in both cases

15. Seven of the companies were established by Jaafar’s relatives and did not meet the criteria necessary for forestry enterprises

16. Jaafar received an 11.5 years imprisonment and was fined of US$ 54,000

18. the volume of the illegal logs

19. the location

20. Suspicious transaction report (STR)

22. identify the perpetrator

23. Identify STR

24. Trace assets

26. Asset freezingProsecution Asset freezing Ruling Imprisonment Asset recovery

27. ILEA scheme and actors Financial institutions Forestry agency Civil society Financial intelligence unit Auditor agency Law enforcement Information/data Law enforcement : Police, Attorney general, KPK, Forestry department investigator Coordination Investigation

28. ILEA scheme and actors Financial Institutions Forestry agency Civil society Financial Intelligence Unit Auditor agency Law Enforcement Information/Data Law enforcement : Police, Attorney general, KPK, Forestry department investigator coordination investigation

29. Constraints Conventional paradigm in tackling illegal logging problem Little history of cooperation among relevant actors Lack of capacity in using the “follow the money” approach

31. Types of forestry documents required from customers

33. Thank youTerimakasih www.cifor.cgiar.org