ASIATODAY.ID, JAKARTA – Indonesia is facing a mounting environmental and economic crisis as deforestation continues to drain the nation’s wealth.
The Corruption Eradication Commission (KPK) has revealed that potential state losses from forest destruction have reached IDR 175 trillion, highlighting the enormous cost of environmental mismanagement and corruption.
According to data from Statistics Indonesia (BPS) and internal KPK records, deforestation across the country has reached 608,299 hectares, underscoring the scale of ecological damage and the financial losses borne by the state.
“Forest destruction in Indonesia currently stands at 608,299 hectares, with potential state losses from the forestry sector amounting to IDR 175 trillion,” the KPK stated on its official statement on Monday, December 29, 2025.
Corruption at the Heart of Forest Destruction
The KPK stressed that deforestation is closely linked to systemic corruption in the forestry sector. Several high-profile cases are currently being prosecuted or investigated.
One major case involves alleged bribery in a forest management cooperation scheme at state-owned company PT Inhutani V, with bribes totaling IDR 4.2 billion, including luxury assets such as a Rubicon vehicle. The case has brought PT Inhutani V President Director Dicky Yuana Rady, PT PML Director Djunaidi, and Aditya, a licensing officer at SB Group, to trial at the Jakarta Central District Court’s Corruption Court.
Another case concerns bribery related to the conversion of protected forest land in Bogor Regency, valued at IDR 8.9 billion, as well as bribes tied to plantation business permits and land-use rights (HGU) in Buol Regency, amounting to IDR 3 billion.
A Global Environmental Stake
Citing data from Global Forest Resources, the KPK noted that Indonesia possesses one of the world’s largest forest areas, covering 95.96 million hectares, or approximately 2 percent of global forest cover.
“This natural wealth must be protected collectively. Failure to do so will not only harm Indonesia, but also have global consequences,” the commission warned.
SAVE FOREST: A Tool to Fight Environmental Crime
As part of its preventive strategy, the KPK recently launched SAVE FOREST (JAGA HUTAN) , a digital monitoring dashboard aimed at strengthening transparency and oversight in forest governance and curbing corruption-driven environmental destruction.
With losses running into the hundreds of trillions of rupiah, deforestation has become a stark reminder that weak governance and corruption do not only devastate ecosystems—but also severely undermine national prosperity. (AT Network)
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