WikiWealth

"The ratio of Indonesia’s forest area compared to its overall land area makes lumber one of Indonesia's most natural resources. Indonesia has 143 million hectares of forest area and its land area totals 193.6 million hectares (1 hectare=2.47 acres). This is nearly three fourths of the countries total land area. Furthermore 300,000 people are directly employed by logging and roughly 14 million people are some how dependent on such forests.

The rate of forest destruction is alarmingly high and the lack of government intervention eventually led to the loss of up to 40 percent of it's forest areas in some areas, One of which is Kalimantan. Kalimantan forests were losing 550,000 hectares of land a year by 1980. This number eventually rose to 700,000 hectares of land by the mid 1980s. Kalimantan forests were receding faster than any other nations in Southeast Asia.

The Indonesian Department of Forestry is the primary controller over its logging industry. What started as a log export quota in 1980 grew much stricter thru 1985. Without such dramatic measures, the forests in Indonesia might have become baron. In opposition to strict restrictions, on exports from Indonesia, a black market for Logs has been created."

Sources:

http://internationalbusiness.wikia.com/wiki/Illegal_Logging_in_Indonesia"Illegal Logging" has a significant impact, so an analyst should put more weight into it.