10. indonesia country update

SVLK Development

The Ministry of Forestry Republic of Indonesia

Commitment to Sustainable Forests

for Sustainable Trade

Lao, October 2014

The Indonesian Forest

Area

as of December 2012 designation

more than 17,000 islands

181.2 million ha land area

134.4 million ha of forest land (

>74 % of land area)

Conservation

Forests

20%

Protected

Forests

22%Production

Forests

25%

Limited

Production

Forests

19%

Convertible

Production

Forests

14%

Indonesia’s Forest Resources • Indonesia’s Forest Resources are very important to

sustainable development of the country.

• Sustainability of Indonesia’s forest resources is a necessity.

• Assured legality and SFM allow Indonesia’s forest resource provide economic, social and environmental benefits :

– plywood was the most important non-oil and gas export commodity.

– there are more than 40 million people live in and surrounding forests.

– Indonesia’s forest resources are home of biodiversity, and protect water and soil.

• Illegal logging threaten sustainability forest resources.

Justification for SVLK Development

Sustainable Production

Sustainable Trade

Sustainable Raw

Material Supply

Sustainable Industry

Law Enforcement

Sustainable Forests

SVLK Developmen

t

Sustainable Trade

Sustainable Forests

Uniqueness of SVLK• SVLK is developed

– based on Indonesian law and regulation.

– Through multi-stakeholders consultation process.

• Implemented by forestry stakeholders.

• Mandatory.

• Recognition to Civil Society role as Independent Monitor (credibility and accountability of the system)

• High commitment from all forestry stakeholders to

assure legality and sustainability forest resources.

The Advantages of SVLK

Development

• SVLK improves good forestry governance.

• SVLK meets customer demand for legally

harvested, transported, processed and traded

timber, include from sustainable forests.

• SVLK consists of Legality and SFM Schemes.

• SVLK provides unique experiences to customer.

Scope of SVLK

SFM-C

TL-C

TL-C

TL-C

TL-C/SDoC

INDUSTRY/EXPORTERTL-C

Forest Concessionaries/ Forest Management PermitHolder

Community-based forests

Forest Utilization Permit, HTHR

Private-owned Forest

2

34

5

6

1

TL-C/SDoC

7

TL-C/SDoC

8

Handycraftman/Household industry

IMPORTER

SDoC

9

Timber Depot

SFM-C : SFM Certificate (ISO 17065)TL-C : Timber Legality Certificate (ISO 17065)SDoC : Supplier’s Declaration of Conformity (ISO 17050)

NATIONAL

ACCREDITATION

BODY

Independent

Monitoring

Management

Units

SFM/TL

Certification BodyV-LEGAL

DOCUMENT

(FLEGT License)

SFM or TL

CERTIFICATE

ACCREDITATI

ON

CERTIFICATE

MINISTRY OF FORESTRY (Regulator)

How SVLK work?

LIUSILK

Justification for Indonesia entering

FLEGT - VPA

• No demand – No supply for illegal timber.

• Illegal logging related to illegal trade.

• Producing countries can not combat illegal logging without support from consuming countries (demand side).

• FLEGT-VPA demonstrates cooperation between producing countries and consuming countries to combat illegal logging and its associated trade and to support good forestry governance.

SVLK Development & FLEGT-VPA RI-EU

Progress

2001Bali FLEG

Declaration

2003-2009

SVLK Dev’t

2011Forestry

Regulation on SVLK

2012Trade

Regulation on SVLK

2013Implementation of SVLK for export

2007 RI-EU

FLEGT-VPA was initiated

2011

Negotiation was

Concluded

2013Signing RI-EU FLEGT-VPA EUTR

Take into Force

2014 EU Ratification

2014

FLEGT-

VPA

Ratification

Current Works

1. Implementation of ISO 17050

Supplier’s Declaration of Conformity

(SDoC) for low risk timber from

privately-own forest and household

industry.

2. Second stage of VPA Joint

Assessment.

3. Drafting of Timber Import Regulation.

Impact and Benefit (achievement)

of Indonesia-EU FLEGT-VPA

1. Recognition and Confidence.

2. Improved of good forestry governance.

3. Integrated system of legality assurance (LIU-

MoF), Trade (INATRADE-Ministry of Trade),

and Customs (INSW).

4. Market acceptance.

5. Joint effort to halt illegal logging and illegal

timber trade.

6. Increase export.

Challenges and What Next ?

1. Maintain multistakeholder (inter-

ministerial, civil society, private sector)

process.

2. Public procurement policy.

3. EUTR implementation in supporting to

VPA implementation.

4. Wider/other market acceptance/

cooperation.

10 Biggest Export Country of Destinations in 2013

(US$ mill)