Enviro News Asia, Borneo — An investigation by the British NGO Earthsight and its Indonesian partner Auriga Nusantara has identified 65 mills and factories in Indonesia processing timber sourced from deforested natural forests, mostly in Borneo. The findings link several European companies to products made with what the NGOs call “deforestation timber.”
The report, Risky Business, published on October 28, 2025, draws on nearly 10,000 unpublished government records and field documentation showing large-scale forest clearance in key orangutan habitats. The groups said this is the first comprehensive dataset revealing the companies involved in processing wood from Indonesia’s remaining natural forests.
According to Earthsight, the five largest users of deforestation wood in 2024 exported products such as plywood, garden decking, and door frames to the European Union. Much of this wood originated from Borneo, where logging and agricultural expansion continue to destroy lowland rainforests critical to endangered species.
The NGOs conducted field visits to four recently cleared forest areas in central Borneo that had supplied these manufacturers. They recorded thousands of hectares of forest loss within one of the world’s last orangutan strongholds. Local communities reported losing access to food and natural materials, leading to clashes with loggers and police.
Earthsight confirmed that timber from deforested areas has entered European markets legally, due to delays in implementing the EU’s Deforestation Regulation. The report noted that some Dutch importers continued business with Indonesian firms despite evidence linking them to recent forest clearance. One importer admitted sourcing from PT Mayawana Persada, identified as Indonesia’s top deforester in recent years.
Earthsight’s Southeast Asia lead, Aron White, said European consumers may unknowingly be supporting forest destruction. “We found companies buying thousands of cubic metres of timber from the most damaging deforestation in Indonesia, while claiming their supplies are sustainable. The EU must act now to enforce its deforestation law,” he said.
The investigation revealed that two of the five Indonesian manufacturers denied using deforestation timber during recorded meetings, despite official data showing they purchased more than 6,000 cubic metres of it in 2024. They sent most of their exports—73 and 88 percent respectively—to European markets.
Borneo lost 129,000 hectares of forest in 2024, an area equivalent to the size of Rome or Los Angeles. Earthsight said logging and plantation development are financing the destruction of Indonesia’s tropical forests, producing higher carbon emissions than the entire Netherlands last year. (*)
