"Instead of taking drastic measures to reverse the destruction of our remaining forests, the forest ministry is hell-bent on issuing new permits to the highest bidders," Greenpeace Southeast Asia campaigner Hapsoro said in a statement.

Greenpeace activists dressed as rich entrepreneurs threw sacks of "money" at other protestors acting as forestry officials in a mock auction of Indonesia's forests in front of the ministry's office in Jakarta. Indonesia loses about 2.8 million hectares (6.0 million acres) of forests each year -- among the highest rates in the world.

Conservationists and scientists say deforestation reduces the capacity of the ecosystem to regulate the water and also leads to soil erosion and landslides.

Flash floods and landslides in the north of Sumatra which killed 100 and displaced more than 400,000 people in December were blamed on deforestation.

Indonesia had lost more than 72 percent of its intact ancient forest areas, according to Greenpeace.

Kalimantan and Papua have some of the last areas of Indonesian rainforest and are home to a rich variety of plant and animal life, with new discoveries being made on an almost monthly basis.

earlier related report
Indonesia bans unregistered tin exports as prices soar
Jakarta (AFP) Jan 24 - Indonesia has from Wednesday banned unregistered firms from exporting refined tin as prices for the metal soar to historic highs on supply concerns.

The government said only exporters registered with the trade ministry's directorate general for external trade would be allowed to export refined tin. Refined tin for export must be produced from ore obtained from legal mining contractors and the shipment of refined tin will only be allowed after exporters have paid royalties, the government said in a decree issued Tuesday.

The ruling comes just months after the government cracked down on illegal smelter operations in the Bangka-Belitung islands, which account for nearly half of the country's refined tin exports.

Tin prices touched an all-time high of 12,350 dollars per tonne on the London Metal Exchange Tuesday due to supply concerns, analysts said.

Indonesian state tin miner PT Timah rose 8.7 percent to 6,250 rupiah Wednesday in early trade following the spike in tin prices.

Prices are bouncing higher due to a fall in output from Indonesia, which is the world's second biggest producer of the metal, and booming demand from countries such as China and India.

In a separate decree, Indonesia has from Wednesday also banned the export of soil and sand in an effort to minimize environmental damage.

"Therefore to anticipate further worse environmental damage, it is deemed necessary to add all sand types, besides sea sand, various soil and top soil as goods that are forbidden to export," a decree issued by the trade minister said.

Companies which have already signed export contracts have until February 5 to fulfil them.

Related Links
Save the Forests at Wood Pile