More than half of the timber companies and sawmillers in East Java have closed because of rising taxes by state agencies.
An estimated 150 out of 250 firms have shut due to the various legal and illegal fees being imposed at each city. A decline of up to 20% in international timber prices has further squeezed the companies.
Additional hardship is coming from police investigations into illegal wood operations, which make firms unable to deliver their products on time.
