Indonesia’s Ministry of Forestry has shelved plans to increase its logging quota because timber companies are being dishonest about the level of domestic demand for wood.

The ministry said companies had been overstating demand and selling the excess wood overseas, as well as hiding the true capacity of their plants.

To help solve the problem, the ministry will carry out an audit at registered companies. The audit, to be completed by the end of the year, may also help to assess the availability of sustainable timber.

The ministry had originally planned to raise its logging quota from 5.45 million m3 to 30 million m3 in 2005 to meet domestic demand.

It argued that low quotas had forced timber companies to source illegal wood for export overseas.