Deforestation is the second-largest global source of greenhouse gas emissions, and the exploitation of forests in Indonesia makes the country one of the world's largest polluters. Indonesia has committed itself to reducing its greenhouse-gas emissions by 26% compared with business-as-usual levels by 2020 (rising to 41% with international assistance), identifying the country as one of the most progressive developing nations in the UN climate-change negotiations. However, scepticism exists about whether Indonesia will achieve this target, owing to rampant corruption in the forestry sector.

A financial mechanism known as Reducing Emissions from Deforestation and Forest Degradation (REDD+), which is currently under discussion as part of the UN climate-change negotiations, could provide Indonesia with important new incentives to control illegal logging and halt illegal land conversion. Under a REDD+ deal concluded in May 2010, Norway has pledged to provide US$1bn in performance-related payments tied to measures implemented by Indonesia to reduce deforestation.

The incentives provided by the grant, as well as the obligation to fulfil international commitments to reduce greenhouse-gas emissions, could help to galvanise Indonesia's long-standing domestic efforts to end corruption in the forestry sector. These measures include ongoing investigations by the Corruption Eradication Commission (KPK), which has stated publicly that corruption permeates every level of the sector. In April the KPK successfully concluded the prosecution of Wandojo Siswanto, a former lead negotiator for the Forestry Department in UN climate-change talks. Mr Siswanto was jailed for three years for accepting bribes to influence the outcome of a public tender for a radio system.