There is a high demand for timber in this area because of the low prices. Almost 90 percent of the timber from the border area between Indonesia and Malaysia is sold to buyers in Malaysia. This timber is transported overland along a road built on land owned by locals. Every truck using the road must pay Rp 40,000 to the landowner. At the border area, the timber is transported to Malaysia via a road passing through oil palm estates in Malaysia.
Trucks carrying wood from Malaysia freely enter Indonesian territory.
Collusion with Indonesia's customs and excise officers at the border area makes this possible. Once in Malaysian territory, the timber is collected by a legitimate company. It is tallied, after which tax is paid to the Malaysian government, legalizing the timber's entry into Malaysia. No taxes are imposed on this timber in Indonesia. There are various methods of illegal logging, one of them involving oil palm estates.