Following a $1 billion deal with Norway under a UN-based anti-logging campaign, Indonesia’s President Susilo Bambang Yudhoyono has signed a moratorium on logging that will last for an initial two years, according to alternative investment advocacy firm, Alternative Asset Analysis (AAA).
Boston, MA, May 21, 2011 — Following a $1 billion deal with Norway under a UN-based anti-logging campaign, Indonesia’s President Susilo Bambang Yudhoyono has signed a moratorium on logging that will last for an initial two years, according to alternative investment advocacy firm, Alternative Asset Analysis (AAA).
Although the news of the moratorium is being welcomed with caution by the world’s environmental pressure groups, including Greenpeace, the news is a positive step towards protecting some of the most pressure forest land in the world, said AAA.
The country of Indonesia is home to some of the last remaining untouched forests in the world, but it is also known to be one of the world’s worst culprits for CO2 emissions. This is mainly due to its deforestation habits, which include clearing land for controversial oil palm plantations.
AAA supports sustainable and ethical plantations in emerging economies, such as the plantations run by Greenwood Management in Brazil, as they are helping to supply wood that can be used by local industry instead of native wood from the Brazilian rainforests. Changes in legislation brought in by the Brazilian government have helped reduce deforestation and encouraged aforestation hugely, according to Greenwood Management.
AAA added that the plantations provide wood for charcoal that is used by the steel industry, which is booming. The steel firms have been told they cannot receive state financial help while they are using charcoal made from native timber, so they are eager to buy up the plantation charcoal – making big money for investors.
Onlookers hope that Indonesia’s signing of the moratorium will indicate one of the first steps in the move towards a similar set of measures as Brazil. The $1 billion deal with Norway is part of a wider UN-sponsored scheme that intends to provide incentives for developing countries to protect their forests.
AAA’s analyst and partner, Anthony Johnson, said that the extremely cautious welcome from Greenpeace is understandable as there are few details about the extent to which the moratorium will actually prevent logging. However, he welcomed the news as an indication that the government in Indonesia was starting to realize that the pressure is on to take measures to stop the logging of its forests.
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Anthony Johnson
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