http://www.spiegel.de/wirtschaft/0,1518,300704,00.html
It's an interesting article about the tropical woods bussiness in Indonesia. Specifically it addresses the illegally cut Meranti wood which is cheaper than the Meranti that comes with the Forest Stewardship Council (FSC) seal. FSC certified wood has to document clearly where it has originated from.
Apparently up to 90% of the wood coming from Indonesia though is illegally cut and then sold through something called "governmental controlled wood economy" - Essentially this is done by selling wood that has been impounded by the government and then 'sold' back to the guy that cut it in the first place. The judge over the case gets a kickback in the process.
Translated quote:
For 2003 the Indonesian government had authorized the cutting of 6.9 million cubic meters of forest. According to estimates though 90 million cubic meters of forest were cut. The losses through the illegal cutting of the up to 70 meter high trees are gigantic: Every year the activities of the wood industrie cost the government more money than what 8 million Indonesian families earn on average. At some point the department of forestry took notice and tried to stem this trend through prohibiting the exportation and with punitive tolls. The wood cutters then just smuggled the wood to Malaysia and sold it from there.
This type of illegal wood cutting nearly cost a local Indonesian journalist (Abi Kusno Nachran) his life last year when his report led to the impounding of 54,000 cubic meters of illegally cut wood. - He was left for dead after being assaulted with a machete.
Yearly Indonesia at the current rate is loosing an area of forest the size of Switzerland.
This somewhat sums up the article. I thought it might be of interest. Again, by no means am I a tree hugger - But I do believe in fair trade and the protection of resources.