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FINAL REPORT

PD 80/01 Rev.6(M)

Consolidating SustainableForest Management

Certification in Indonesia

Prepared byThe Indonesian Ecolabelling Institute (LEI)

Submitted byGovernment of Indonesia

FINAL REPORT

PD 80/01 Rev.6(M)

Consolidating SustainableForest Management Certification in Indonesia

Prepared byThe Indonesian Ecolabelling Institute (LEI)

Submitted byGovernment of Indonesia

A PROJECT IDENTIFICATION

® TITLE Consolidating Sustainable Forest Management Certification inIndonesia

® SERIAL NUMBER PD 80/01 Rev. 6 (M)

® EXECUTING AGENCY The Indonesian Ecolabelling Institute

® HOST GOVERNMENT Indonesia

® STARTING DATE March 2003

® DURATION 30 months® IMPLEMENTATION PERIOD March 2003 to December 2005

® PROJECT COSTS $ 592,487 (USD)

PREFACE

We have the pleasure to submit this completion report of ITTO PD80/01 Rev 6 (M), Consolidating Sustainable Forest ManagementCertification in Indonesia as the basis for the ITTO Secretariat’s report

to the Committees and Council on completed projects. This report was preparedin accordance to the ITTO format provided in Annex D of the ITTO Manual forProject Monitoring, Review, and Evaluation, May 1999 Edition.

During this project, Lembaga Ekolabel Indonesia has put all its efforts to developPlantation Forest Certification Scheme and to help developing national capacitiesto support credible forest certification systems. LEI would not be able toaccomplish those without the help from the Ministry of Forestry, NGOs, LEIAccredited Certification Bodies, the Private Sector, Consultants, Pustan LIPI, andalso the academia from Bogor Institute of Agriculture, Gadjah Mada Universityand other universities. We would like to thank them for great help, assistanceand facilitation to make the project accomplished its undertaking. Moreover, LEIalso express its utmost gratitude to ITTO and Ford Foundation that have providedfinancial supports to accomplish the objectives of the project.

Bogor, 30 March 2006

AMAN : Indegenous People Alliance of Archipelago

APHI : Association of Indonesian Forest Concession Holder

ASOF : ASEAN Senior Official Meeting on Forestry

CB : Certification Body

CBFM : Community Based Forest Management

CBO : Constituent-based Organization

CGI : Consultative Group on Indonesia

CRC : Certification Review Council

C&I : Criteria and Indicator

EA : Executing Agency

FCM : Forest Certification Monitoring

FF : Ford Foundation

FMU : Forest Management Unit

FWI : Forest Watch Indonesia

ISO : International Organization for Standardization

ITTA : International Tropical Timber Agreement

ITTO : International Tropical Timber organization

LEI : Lembaga Ekolabel Indonesia

MIS : Management Information System

MOF : Ministry of Forestry

NFMU : Natural Forest Management Unit

NGO : Non-governmental Organization

OVI : Objectively Verifiable Indicator

PCF : Provincial Communication Forum

PEA : Project Executing Agency

PFMU : Plantation Forest Management Unit

PRB : Personnel Registration Body

PSC : Project Steering Committee

SFM : Sustainable Forest Management

SPFM : Sustainable Plantation Forest Management

SUSTAINABLE PLANTATION FOREST MANAGEMENT

CERTIFICATION : Plantation Forest Certification

YPO : Yearly Plan Operation

GLOSSARY:

PART I: EXECUTIVE SUMMARY 11

1.1. Background Information About the Project 111.2. Project Achievements 13

1.2.1 Output Achievements 131.2.2 Specific Objectives Achieved 181.2.3. Contribution to the achievement of the Development Objective 19

1.3. Target Beneficiaries Involvement 191.4. Lessons Learned 20

1.4.1. Development lesson 201.4.2. Operational Lessons 20

a. Project Organization and Management 21b. Project Documentation 21c. Monitoring and evaluation; Quality of Project Planning 22d. Definition of roles and responsibility of the institutioninvolved in the project implementation 22e. Actions to be conducted to avoid misinterpretation of activities

between the planned and the actual implementation (schedule, cost, etc) 22f. Internal factors influencing the project’s implementation that have not been anticipated 23g. External factors influencing the project’s implementation that have not been anticipated 23

1.5. Recommendations 23

PART II. MAIN TEXT : 182.1. Project Content 18

2.1.1 Project Description 182.1.2. Development Objective 182.1.3 Specific Objectives 192.1.4 Expected Outputs 192.1.5. Implementation Strategy 202.1.6. Project Work Plan 202.1.7. Required Inputs 21

TABLE OF CONTENTS

Project Completion Report PD 80/01 Rev. 6 (M)

2.1.8. Project Rationale 302.1.9. Relevant Background Information 312.1.10. Project Location 312.1.11. Previous Preparatory Activities 312.1.12. The ITTO Context 32

2.2. Project Context2.2.1. National and Sectoral Development Objectives 34

2.3. Project Design and Organization 342.4. Project Implementation 352.5. Project Results 372.6. Synthesis of Analysis 39

PART III. CONCLUSION AND RECOMMENDATIONS 433.1. Development lessons 433.2. Operational Lessons 443.3. Recommendation for future projects 443.4. Organization 453.5. Management 45

APPENDIX. PHOTOS OF THE PROJECT OUTPUTS 47

“Consolidating Sustainable Forest Management Certification in Indonesia”

PART I:

EXECUTIVE SUMMARY

1.1. Background Information About the Project

From its first years, Lembaga Ekolabel Indonesia (LEI, or the Indonesian EcolabellingInstitute) has developed certification system for sustainable forest management. Theecolabelling certification is meant to provide pathways for forest management units inIndonesia to implement sustainable forest management. The ecolabelling certificate shallprovide buyers with information on the social and ecological aspects of the productionof the forest products the buyers about to buy. The ecolabelling certificate also helpsgovernment to direct forest utilization toward sustainable forest management. Buyersand government can use ecolabelling certification as benchmark for providing incentivesfor “green” forest management units. Buyers can provide premium price, wider marketaccess, and government can provide subsidies and regulatory waivers. Ecolabellingcertification can be one of efficacious ways in promoting sustainable forest management.

However, it was apparent that number of certified forest management in Indonesia wasvery few. Such a condition was due to, one, lack of capacity at national lever to ensurethe implementation of credible certification. The national capacity to implementcertification for sustainable natural production forest management, sustainable plantationforest management, and sustainable community based forest management is still need alot of improvement. Like in many other countries, certification is new in Indonesia.Institutions, personnel, systems, and mechanism are not yet perfectly in place. Thepotentials and embryo are there however. Due to such situation, despite of its importancefor credible certification, forest monitoring certification is not adequately done.

Another reason, low intention for undergoing certification was because of law incentivesprovided to the businesses. It will incur a forest management unit a cost to undergocertification. If the cost is not paid off by the increased value in their products, theintention will be subsided. The key or root problem on why there is lack of incentivesfrom buyers in Indonesia as well as abroad. Ecolabelling certification is not well knownto buyers. Awareness of community at large is also still relatively low.

Moreover, unavailability of incentive to managementunits, including the small-scale ones managed bycommunity will result in limited supply of certifiedproducts. This condition will open more rooms fornon-certified and illegal products to enter the marketsince they have advantages from a much moreinexpensive cost of production and maximum profitgaining.

Based on the concept above, the targets of thisproject were to promote the implementation ofsustainable forest management (SFM) to ensureincreased availability of certified timber fromsustainably managed forest. Specific objectives of thisproject were:1. To improve public awareness on implemen-

tation of national and international sustainableforest management (SFM) certification systemsin Indonesia

2. To establish national capacities needed to ensureimplementation and monitoring of crediblenational and international SFM certificationsystems in Indonesia.

By its specific objectives, the project outputs were:

Output 1.1 Socialised National and InternationalForest Plantation Certification Systems

Output 1.2 Established Management InformationSystem (MIS) on nationally andinternationally certified forest products

Output 1.3 Consolidated Provincial Communi-cation Forum (PCF) as a certificationnetwork for both national andinternational stakeholders

Output 1.4 Increased public campaigns on SFMCertification and Forest CertificationMonitoring (FCM)

Output 2.1 Training system for national andinternational plantation forest certifi-cation is developed

Output 2.2 Trained assessor and expert panels fornational and international certificationschemes in Indonesia

Output 2.3 Improved expertise of national humanresources in certification and certifi-cation monitoring fields

Output 2.4 Consolidated Certification ReviewCouncil (CRC)

Output 2.5 Developed and implemented ForestCertification Monitoring (FCM) System

Through this project, SFM implementation inIndonesia has been well consolidated. Before thisproject implementation, there was only one NaturalForest Management Unit (NFMU), which was PTDiamond Raya Timber. At present, there are 7 FMUsthat have been awarded ecolabeling certification:Sumalindo Lestari Jaya II, Intraca, Erna Djuliawaty,Diamond Raya Timber (for sustainable naturalproduction forest management), Riaupulp or RAPP(for sustainable plantation forest management),Sumberejo and Selopuro (for sustainable communitybased management). Some forest management unitsare now awaiting or undergoing certificationprocesses.

Activities conducted by LEI through this project havesignificantly been driving toward environmental-friendly forest management. LEI had successfullycompleted the program of Sustainable PlantationForest Management training system development andimplementation. Number of training participants wassatisfactorily met, as well as the target of manybackgrounds that represent the interests at nationallevel. In addition, LEI had conducted specific trainingsfor officers of the Ministry of Forestry and of thelocal government forestry offices. These specifictrainings aimed to strengthen awareness ofgovernment institutions staff members onecolabelling certification for sustainable forestmanagement. National level capacity strengtheningprogram was not exclusively implemented throughtraining for assessors and Expert Panel membersonly, but also includes other activities such associalization of certification, dissemination ofinformation on sustainable forest managementcertification and development of certificationcommunication network into provincial and districtlevels.

Establishment of Provincial Certification Forum(PCF), for example PCF in West Java, will help FCMdevelopment, specifically in West Java region toanticipate current growth of community-based forestmanagement certification movement. Other PCFs inother provinces have helped in disseminatinginformation in certification. PCFs in Riau hadcontributed a great deal in certification of the firstplantation forest in the province. The establishmentof some PCFs and re-strengthening of some othersare done under this project.

The program of certification personnel monitoringthat was before undertaken by LEI, is now underthe responsibility of the Standardization Center ofIndonesian Science and Knowledge Institute (PustanLIPI) as LEI’s partner. Pustan LIPI is responsible forregistration and monitoring of assessors and ExpertPanel members. Pustan LIPI is a competent andindependent body in personnel certification withqualification in administering ISO 9000 and ISO14000 certification personnel. Pustan LIPI has alsodeveloped codes of conduct that for professionalworking on certification.

Along with the transformation of the organizationfrom foundation to constituency based organization,LEI has changed its governance. LEI governancesystems comprises of Congress as the highestauthority that elects the members of constituenciesrepresentative council (Majelis Perwalian Anggota,MPA). MPA elect Executive Director to manage andlead the Executive Body. LEI and its all governingsystems develop standard, accredit certificationbodies, provide training and disseminate informationpertaining to sustainable forest management, and alsosustainable resource management. Such changeshave also resulted in the increasing need of bettercommunication between LEI’s MPA, Executive Bodyand its constituencies. To facil itate thecommunication, a website, internet communicationportal, and other non internet based communicationwas developed.

The internet based communication portal one of thestrategies to link as much as possible LEI’s

constituents to one another. They are stake holders,whose interests are at stake in the forest managementcertification. The portal allows all constituents, amongothers through the PCFs, to exchange informationand post it in the website. It is expected that such afacility will allow quick and regular update ofinformation pertaining to certification in the country.Monitoring of forest certification will also be moreeffective, as more information will be spread out inmuch easier ways. It is also expected that such afacility will reach government officials at local(provincial and district levels).

The aforementioned are the highlights of theachievements of the project. The project hasachieved its intended objectives. The details of theachievements are described below. To accomplishfully, the project has been extended for 6 monthswithout additional fund.

1.2. Project Achievements1.2.1. Output Achievements

Output 1.1.Socialized National and InternationalPlantation Forest Certification Systems

The Project recognized the need to increaseawareness on the significance of sustainable forestmanagement and to assist Plantation ForestManagement Units (PFMUs) and communities inachieving it. LEI has conducted series ofcommunication program to disseminate informationpertaining to certification system for plantationforests. The Executing Agency has also printed thedocuments and information on Certification Systemfor plantation forests, and distributed it to allstakeholders. As results, LEI obtained constructiveinputs from the stakeholders for LEI’s certificationsystem improvement. In the early step, fourPlantation Forest Management Units (PFMUs) appliedSFM certification namely: PT. Riau Andalan Pulp andPaper (Riau Province), PT. Musi Hutan Persada(South Sumatera), PT. Wira Karya Sakti (Jambi), and

PT. Asia Pulp and Paper (Riau). On 13 March 2006,PT RAPP was granted SFM certificate by PTMutuagung Lestari, one of the three CertificationBodies accredited by LEI. Since the certification ofRAPP was under a pilot certification under thisproject, LEI closely monitored the implementationthe entire processes. This is a very encouragingdevelopment and we are optimistic that other PFMUswill follow PT RAPP.

As a part of refining system of Sustainable PlantationForest Management (SPFM) certification, LEI hasperformed mock (try out) assessment in a teakplantation forest management unit of a state ownedcompany “Perum Perhutani KPH Nganjuk”, East JavaOn 11-17 August 2005, to complete the activity1.1.4. After completion of the try out on PerumPerhutani, the team of assessors and Expert Panelmembers conveyed some recommendations forrefining of the system of SPFM certification. Therecommendations has been compiled and formulatedduring drafting of the refinement of SPFMCertification System. The draft itself has beenfinalized and printed for public distributions.

Output 1.2.Established Management InformationSystem (MIS) on nationally andinternationally certified forest products

LEI’s website was developed and has implementedsuccessfully under this project, and are currentlyoperating well, thus satisfying information needs atvarious stages of LEI’s constituents. Our website,http://www.lei.or.id has been operating and beenmaintained throughout the project period andbeyond. The information and content in the websitehave been regularly updated and is now under thecontinuous process of improvements to reflect theprogress, activities and products of LEI, as well as toassist the campaign toward certification of Indonesianforests.

As an Accreditation body, LEI controls certificationprocess carried out by LEI’s accredited certifier sothat it complies with LEI system. On the other hand,

information on SFM certification and Indonesiancertified forests need to be recognized by Indonesianforest product producers and also relevant buyersof certified products. In collaboration withcommunities, PCFs, LEI accredited certifiers andFMUs, the project has established “communicationportal” an internet-based communication. LEI’swebsite was an approach to promote sustainableforest management in Indonesia. This activity hadbeen completed.

Output 1.3.Consolidated Provincial CommunicationForum as a certification network for bothnational and international stakeholders

To ensure the credibility and the efficacy of thecertification to achieve the intended long term goals,monitoring by third party and independent body shallbe constantly done. LEI has initiated the inviting allstake holders and concerned parties to developmonitoring scheme. One way to develop monitoringscheme is by engaging the Provincial CommunicationForum (PCF). For that purpose the executing agencyorganized a training/workshop on “LEI CertificationSystems and Forest Certification Monitoring” forPCFs from all over the country on 3-6 March 2005,at Lembur Pancawati, Bogor. The training was toimplement the activities planned under the outputnumber 1.3 in the proposal. The training wasattended by 43 participants and enthusiasticallydiscussed various ideas and practices in forestmanagement, forest certification system, and forestcertification monitoring, including the challenges inachieving sustainable forest management in Indonesia.The discussions were on the following topics:maximizing of the role of certification bodies,strengthening of the role of ProvincialCommunication forums, and maintaining of LEI’ssystems credibility. The training employed themethods of role playing and case studies to enableparticipants to acquire better knowledge and skills.Training facilitators also provided energizer and gamesin-between the sessions to maintain participant’senthusiasm.

The project then continued its action instrengthening the capacity of local networks tosupport certification, through establishmentProvincial Communication Forum (PCFs) in JambiProvince and South Sumatera Province, and re-establishment of Riau Provincial CommunicationForum. LEI also established a new PCF in West Javato develop communication amongst relevant partieswith concern on community-based forestmanagement. It was held in Kuningan on 10-11August 2005. The purpose of this activity was to:Firstly, to establish regional communication forum,and secondly to socialize CBFM certification systemby encouraging local stakeholder to improve andpromote local initiatives on their community-basedforest management in the conservation area ofCiremai Mountain National Park. The workshop alsoagreed to use Paguyuban Mitra Ciremai (PMC), a localmultistakeholder forum, as the regional communi-cation forum and extended the involvement of localstakeholder by adding other neighbouring districtssuch as Majalengka, Cirebon and other surroundingareas (to be identified later after final developmentof follow up program).

To strengthen the PCF member, LEI has alsoreiterated PCF in Riau Province with a new and moresignificant role in certification system by placing themas supporter of LEI’s efforts to maintain relationshipwith its constituents. LEI’s pursuit was that the PCFcan provide a balanced-information on SustainablePlantation Forest Management process. LEI alsofacilitated a forum of “Kampung” (Village) meeting tostrengthen ecolabeling certification awareness amongthe people at village level. At Kampung meeting, LEIdescribed to kampung community the process ofcertification that has been placed upon an FMU, hownecessary the role of community in the process is,at the same time giving them confidence in observingthe extent of their benefits or loss when an FMU isstarting a certification process. Those meetings wereheld at several villages in Pelalawan Regency, RiauProvince and in Malawi Regency, West KalimantanProvince. The Kampung meeting were proved to givepositive benefit to certification campaign andmonitoring, both for this project and for overall

certification implementation. Quite many informationhave been gained through this activity, specificallyinformation on certification system improvement,which through these, LEI gained a wider perspectiveregarding their role as a credible certification body.These inputs were a great contribution to confirmLEI’s action in the future. Within this progress, thisoutput has been satisfactorily concluded.

Output 1.4Increased public campaigns on SFMCertification and Forest CertificationMonitoring (FCM)

LEI also took part in strategic meetings to promoteSFM certification and monitoring. In Asia region, LEIhad participated in several international forums suchas Asia Forest Partnership (30 August-1 September2004 in Yogyakarta, Indonesia, and 8-10 December2005 in Tokyo, Japan) and Pan ASEAN Certificationheld in Philippines on 9 December to 11 December2004, and 13-14 December 2005 in Chiang May,Thailand. In those forums LEI shared informationconcerning certification and presented the conceptof phased-approach to certification, and legal originverification (LOV). In doing so, LEI aims to strengthencertification network in Asia region. LEI alsoparticipated as trainer in training for certification heldin Myanmar on 28 November – 4 December 2004.LEI also promoted its programs and forestcertification in general through various meetingsattended by LEI staff members. LEI participated theForest Dialogue in Hongkong on March, 2005. LEIactively involve in the international forum as memberof the Government of Indonesia delegation in ITTOmeeting in Yokohama December 5-7, 2005; ASEANSenior Official Meeting in Pnom Penh, Cambodia(August, 2005).

LEI also actively engaged on the lobby trips toEuropean Commission and European NGOs inBrussels, Germany, Spain and Portugal in June, 2005and presented the phased-approach to certificationscheme and legality standards at the update meetingfor illegal logging held by the Royal Institute forInternational Affairs (Catham House), UK, in July,

2005. In all occasions LEI presented new ideas andaccomplishment towards promoting of sustainableforest management through certification.

Campaigns also conducted through dissemination ofinformation. In this respect, LEI have prepared anddistributed interactive CDs on certification inIndonesia, printed and distributed posters and alsopublished updated brochures: Brochures on LEI’sCertification System : Natural Production Forest,Plantation Forest, and Chain of Custody. Over 1000copies of brochures was made and disseminated.Increased number of certified FMUs has also addedthe need on information relating to the use LEI’s logoand certificate, and subsequently, 300 copies of LEI’sLogo Manual was printed and disseminated torespective FMUs and other relevant parties. LEI hasengaged itself in some local exhibitions in the country,and plan to hold joint-exhibitions with otherinstitutions such as business associations,government, using the brochures and informationproduced through this project. Brochures on LEI’scertification system have been disseminated duringpublic meetings whether in Provincial or Kampunglevel. English version of the brochures alsodisseminated during lobby trips to Europe, and inother meetings. These brochures have been veryhelpful in increasing community’s concern oncertification and their interests and willingness toinvolve in certification process as well. Activities havebeen completed and the project’s outputs wereaccomplished.

Output 2.1Developed training system for national andinternational Plantation Forest Certification

The target of this output is to create a training systemthat fulfils the requirements to provide qualifiedpersonnel to implement SFM certification onplantation forest. The developed system consists ofcurricula, syllabus and training manuals that will beused by training instructor as the standard toconduct training. Workshop to compile trainingdesign for both assessor and decision-making panelfor plantation certification was held in July 2003 byLEI’s expert team. A workgroup meeting has also

taken place, which the Training Module for assessorhas been agreed upon. In this period the modulesand system for both assessor and decision makingpanel has been completed. The meeting to improvetraining systems for assessors and expert panelmembers took place at Hotel Salak on 21-22 July2005. In addition to that, the executing agency hastaken some steps to develop system for certificationof qualified personnel (for assessment and formember of expert panels) by personnel registrationbody. The executing agency also assessed the extentto which knowledge and practices collected duringPilot Project of sustainable plantation forestmanagement certification were integrated in thetraining system. The training system for national andinternational Plantation Forest Certification was thuscompleted.

Output 2.2Trained assessors and expert panels fornational and international certificationschemes in Indonesia

Training for trainers was conducted 19-21 of August2003 at Evita Hotel, Bogor. The participants wereselected from individuals that have potentials tobecome trainers for training of assessors onplantation forest certification. This training equippedthe 39 participants with relevant skills to be suchtrainers. Of them, 14 focused on production aspect;13 focused on ecology and 12 focused on socialaspect of forest management.

LEI carried out a training workshop for Expert Panelof sustainable plantation forest managementcertification, held in Pangrango Hotel, December 18-19 2003. The training graduated 16 people thatqualified for membership of expert panels inplantation forest certification. The availability oftrained personals was expected speed up thecertification of sustainable plantation forestmanagement in Indonesia.

To improve the quality and quantity of assessors forsustainable plantation forest managementcertification, a training for assessors was held inNovember 28 – December 2, 2005 at Nirwana Hotel,

Nganjuk, East Java. The training was enriched withactivity of mock assessment for participant in theteak plantation forests management unit of Nganjuk,(under the ownership of Perhutani). Number ofparticipant for this activity was 28 and they werecoming from government bodies, NGO, CertificationBody and observer from Management Unit.

Training for Sustainable Plantation ForestManagement Certification certified Expert Panel washeld again for the second group in December 24-26, 2005 at Hotel Ria Diani, Bogor. Number of trainingparticipants was 21 , they were from severaluniversities (IPB, UGM, Hasanuddin University,Lambung Mangkurat University, MulawarmanUniversity and Jambi University), PCFs (from RiauProvince and West Kalimantan Province),Association of Indonesian Forest Managers (APHI)and Association of Forestry Scholars (Persaki).

Having completed the training for trainers, trainingfor assessors, and training for expert panel members,it is inevitable that a personnel registration body isneeded. The registration body is to ensure that thepersonnel involved in certification posses adequateskills, knowledge and attitude that ensure theircompetencies in undertaking their respective tasksand assignments. For that purpose, LEI has appointedPustan LIPI (Center for Standardization of theNational Academy of Sciences) as a PersonelRegistration Body. The Memorandum ofUnderstanding was signed on December 29, 2005.To support the cooperation various organizationsuch as APHI (Association of concession owners),Telapak (National NGO on natural resourcemanagement), Forest Watch Indonesia, AMAN(National Association of Indigenous Communities),Persaki (Association of Indonesian Foresters),Center for Environmental Standardization of theMinistry of Forestry (Pustanling Dephut), and LEIAccredited Certification Bodies (TUV International,Mutuagung Lestari.)

Through those trainings, LEI had strengthened thecapacity and quantity of plantation forest certificationpersonnel into 39 trainers, 37 persons for Expert

Panel and 67 assessors. Targeted output for thisactivity has been completed and accomplished. SeeAnnex 1: List of Assessor for Sustainable PlantationForest Management Certification and Annex 2: ListExpert Panel Members for Sustainable PlantationForest Management Certification

Output 2.3.Improved expertise of National humanresources in certification and certificationmonitoring fields

The project sponsored members of theimplementing agency staff to participate in short-termtraining programs. Training of advanced English classfor the staff of the implementing agency to increasecapabilities of the implementation agency wascompleted. The course was done in collaborationwith Language Department of the Bogor AgricultureUniversity (IPB). In addition, a short-term trainingon Forest Certification and Forest CertificationMonitoring has been conducted. The training washeld at Puncak Pass, Bogor, on 20-25 October 2005and attended by LEI’s Staff and 5 persons fromAMAN and FWI.

The Executing Agency had sent LEI’s personnel tovisit various activities related to capacity building andshort training abroad and in Indonesia. Theimplementing agency has completed activities relatedto Non-degree (short-term) trainings on subjectsrelevant to forest certification and internal projectmanagement course to increase capabilities ofimplementing agency.

Output 2.4.Consolidated Certification Review Council

A credible certification system should be exposedto inputs from public and concerned parties. LEI hasbeen recognized by most stakeholders in Indonesiafor the transparency of its system and processes.Certification Review Council is an independentauthority to settle disputes concerning certificationissues. CRC had finalized its decision on appeals madeby Forest Watch Indonesia against the certification

of PT. Diamond Raya Timber. This project hashelped LEI to ensure the credibility and ability ofthe CRC to maintain the trust from the communitiesthrough facilitation for holding of regular andverifications meetings.

All activities relating to Operation of CRC secretariatand Regular CRC meeting have been completed.

Output 2.5.Developed and implemented ForestCertification Monitoring (FCM) System

To maintain credibility of certification systemapplied, LEI has developed a Forest CertificationMonitoring System which functions wereidentification and verification on certificationmonitoring through wide participation of the public.

On 12-19 February 2004, The Executing Agencyperformed forest certification monitoring on PT SariBumi Kusuma and PT Erna Djuliawati in CentralKalimantan. Both Forest Management Units werepassed LEI’s expert panel decision on November30, 2002 and September 14, 2003. While theseprocesses of forest certification were certainly anencouraging progress, some critical factor were stillto be identified. Problems that already identifiedwere mostly on tenurial conflicts. This problemneeded to be comprehensively solved together bygovernment, forest management units and relevantstakeholder.

LEI has finalized the public consultation on FCMsystem in 16 August 2005. All activities relating tothe designing of Forest Certification MonitoringSystem (FCM), Procedures for Forest CertificationMonitoring System, Public consultation on FCMsystem, Monitoring of certified forests in Indonesia,Field verification on information from stakeholder’smonitoring activities have been completed.

1.2.2. Specific objectives achieved

1. In fulfilling the first specific objective ofimproving public awareness on implementationof national and international sustainable forestmanagement (SFM) certification systems in

Indonesia. The project had dramaticallyincreased not just the awareness but also publicsupport of certification especially by nationalstakeholders. Parties that voiced the ideas ofcertification moratorium turned to be strongsupporters of LEI after the Congress. Thisproject has helped developing trust of all stakeholders through the involvement andengagement of all parties in the certification ofsustainable plantation forest management.

Another milestone is the certification ofplantation forest in Indonesia, which was donein the first time under this project. A total offour Forest Management Unit has Applied forLEI certification, within the scheme of thisproject they are PT. Riau Andalan Pulp & Paper(RAPP), PT. Wira Karya Sakti, PT. Musi HutanPersada, and PT. Arara Abadi. With a total areaof approximately 1.000.000 ha. Spread out inthree provinces Riau, Palembang, and Jambi. Ofthose companies, RAPP was the first to begranted with the certificate.

International market recognition for certificationhas improved during this project, premium pricefrom buyers buying LEI Certified wood hasbeen documented from two LEI certificateholder in Wonogiri. A Premium of up to 30%from prices before certification is now beingenjoyed by the fortunate farmers. Visibility ofLEI Certification have also increased from thenumerous inquires from international buyersvia the online database supported by this project.

2. Establishing of national capacities needed toensure implementation and monitoring ofcredible national and international SFMcertification systems in Indonesia was a very vitalpart of the project. As illustration the situationbefore the project was that many ProvincialCommunication Forum (multistakeholderforums in the provincial area) were largelyinactive and thus could not act as partners thatacts as a source of information and functionwithin the certification system as a working

member of the certification decision makingpanel. This of course brought serious implicationto the credibility of the certification issued.

Another aspect that was very crucial is beforethe project there were no qualified assessor orexpert panel personel to conduct certificationprocess in plantation forest, and with thesupport of this project 67 assessors, 39trainers, and 37 expert panel member weretrained and registered as well as a number ofpersonal from FMU that are preparing toundergo certification that were also trained.Without the availability of these personals itwould not have been possible to conduct thecertification of plantation forest.

As an added safeguard to the monitoringinstruments already imbedded in thecertification system an additional tool ForestCertification Monitoring (FCM) system toenhance the credibility of certification inIndonesia through this project was also initiate,FCM provides an open system that encouragesall stakeholder especially those communitiesdirectly effected by FMU’s that are certified orundergoing the certification process toparticipate in its monitoring, it also makesavailable a platform for communities and theForest Management Unit to collaborate andresolve conflicts. This together with thefacilitation of the Certification Review Council(CRC) that presides over appeals againstcertification decisions has been a majorcontribution to the credibil ity of thecertification process in Indonesia.

1.2.3. Contribution to the achievement of theDevelopment Objective

Overall the progress and the accomplishment of thisproject has greatly contributed to the achievementof the Development Objective of promotingimplementation of SFM certification to ensureavailability of certified timber from Indonesia.

Through its direct intervention the project hasprovided the necessary precondition forcertification of plantation forest in Indonesia to takeplace. A tangible outcome was the completion andgranting of certificate for sustainable plantation forestmanagement to PT RAPP on March 13, 2006.

1.3. Target Beneficiaries Involvement

The beneficiaries that directly benefited from thisproject were the trained assessors, experts, NGOmembers, members of the community and forestmanagement units by the increasing of theircapabilities for assessing, evaluating andimplementing work on Sustainable ForestManagement. Plantation FMU that before the projectwas unable to be certified are also the majorbeneficiaries since they are benefited from thecapacity development activities and informationdissemination. The FMUs were able to preparethemselves for going to certification. Thecommunities around the FMU’s that are certifiedor undergoing certification have also benefited asthey realized their contribution to the certificationprocess has given them extra leverage and non biasfacilitation to negotiate with the FMU. In this waythe FMU’s have also benefited in the long run asprolonged standing issues with communities aroundthem can be addressed.

The Project has also affected many stakeholders asit has provided up to date knowledge aboutSustainable Forest Management. The internationaltimber market has also benefited as certified timberfrom Indonesia becomes available and the overallbetter management of the forest increase as moreFMU enter the certification process which will helpensure that in the future Indonesia will continue bea producer of tropical timber for the market.

Ultimately, global community also benefited fromthe project since the increased awareness andwillingness to implement sustainable forestmanagement had reduced the deforestation and inturn, had helped improving the global environmental.

1.4. Lessons Learned1.4.1. Development lesson

Upon the completion of the project, theimplementing agency had learned that in order toachieve sustainable forest management, especially onplantation forest management, several factors mustbe taken into account. First, internal motivation isthe most compelling driving factor for a forestmanagement to go for certification. Only a verycommitted company can pass the certificationprocesses. Commitment from management and staffmembers has been determinant factor in the successof a forest management in getting certificate forsustainable plantation forest management.

Secondly, in order to have credible certificate inplace, an inclusive and multi stakeholders engagementin the process is equally important. The ProvincialCommunication Forum has been very instrumentalin the certification processes. It served as informationpool and arms of the underprivileged parties; suchas indigenous communities. The project has affectedpositively to the communities as it help developingtheir knowledge and understanding on the sustainableplantation forest management. The project andcertification that was undertaken therein have openedwindows of opportunity for communities to bedirectly engage in controlling and monitoring theperformance of plantation forest management units.

Third, the lack of willingness from the forestmanagement units to undergo certification is amongothers rooted to lack of incentives. The expectedincentives are from buyers in the form of marketaccess and from government in the form of regulatorywaivers. Such incentives will encourage forestmanagement units as it will compensate the cost forundergoing certification.Fourth, to implement and consistently undertakingall required processes in certification of sustainableplantation forest management, all parties involvedmust possess adequate skills and knowledge. Fromthe project it was learned that assessors and expertpanel members are not quite experienced to

undertake the challenges, despite of their thoroughcomprehension and understanding of the sustainableplantation forest management certification standards,criteria and indicators. For all of them, it was thefirst assessment and first decision to make insustainable plantation forest managementcertification. The more plantation forest managementunits undergo certification, the more opportunityfor the assessors and expert panels members tosharpen their knowledge and skills.

In addition external factors also affect the success inpromoting sustainable forest management. Suchfactors are the disincentives such as high yielding ofillegal and destructive forest exploitation anddecentralization that create confusion in thedistribution of authorities pertaining to forest policies.

1.4.2. Operational Lessons

Project design is always an important factor thatdetermines the success of a project. In this projectwe have mostly benefited from the well planned OVIwhich was a product of numerous consultationswithin our organization and other relatedstakeholders. The OVI truly helped to keep theobjectives of the project in perspective and set outattainable goals to achieve a somewhat ambitiousobjective within the limited time of the project.

The transformation of LEI into a constituent basedorganization in September 2004 is the greatestchange in intersect oral links which have affected theprojects success, in this process stakeholders ofcertification, indigenous communities, civil society,business sector have all come together andcommitted themselves to the implementation ofcertification in Indonesia and its governance. This hasgreatly increase the leverage of certification inIndonesia and has paved the way for morecertification work being completed. Traditionally goodrelations with the government has also improved togood effect as incentives by the government are alsogiven to FMU’s that has passed certification is realized.

a. Project Organization and Management

Since the signing of the agreement between ITTOand LEI on April 14 2003, the project ITTOPD80-01 was ran by LEI as the project executingagency (PEA). To control and monitor the project,a Project Steering Committee (PSC) was thenestablished. The Project Steering Committee(PSC) consisted of:

1. Director General of Forestry ProductionDevelopment (Bina Produksi Kehutanan/BPK) (PSC Head)

2. Executive Director of Indonesian EcolabelingInstitute/LEI (Deputy Head)

3. Director of Natural Forest Development,Directorate General of BPK (Member)

4. Director of Forest Product Processing andMarketing Developments, DirectorateGeneral of BPK (Member )

5. Director of Plantation Forest Development(Member)

6. Bureau Head of Foreign Coordination andInvestments (Member)

7. Head of Center for Forestry andEnvironmental Standardization (Member)

8. Head of Forestry and Natural ConservationResearch and Development Center(Member)

9. Head of Forestry Social, Cultural andEconomic Research and DevelopmentCenter (Member)

10. Ir. Lukito Daryadi, MSc, Member of LEI’sAdvisory Board (Member)

11. Mr. Amha bin Buang, Assistant Director forEconomic Information and MarketIntelligence, ITTO (Member)

12. Division Head of Multilateral Coordination(Member)

13. Subdivision Head of Non-UN Organizations(Member)

14. Subdivision Head of Project Grant Coor-dination (Member)

15. Mr. Takeo Kaminaga, First Secretary, Embassyof Japan to Indonesia (Member)

16. Mr. Pietro Piffaretti, First Secretary andDeputy Head of Mission, Embassy ofSwitzerland to Indonesia (Member)

The Duty of the PSC was to monitor the progressof the project and providing advise and input onhow to increase the quality of the project. ThePSC was an is felt to be an immense helpproviding guidance to the PEA on various issuethat arise during the implementation of theproject. The PSC was conducted twice a yearwhen possible.

In implementing the project the PEA has involvednumerous parties stakeholders who arecompetent in their fields. PEA hired experts withbackgrounds in forest management, ecology andsocial, for initial design and formulation of inputsgiven by the stakeholders to finalize the technicalpoints of the system developed as part of theproject output in ITTO PD80-01. In addition,LEI has also involved other parties, like expertsin the field of training and the governmentofficials, to give explanation from the policy side.

Enhance communication between the secretariatwith the PEA has also prevented miscommuni-cations to take place and increased theunderstanding in this collaboration.

b. Project Documentation

1. Project documentation produced by theproject consisted of:l Administrative document includes Project

Document, Agreement, MOU, Workplan,Minutes of Project Steering Committeemeeting, and correspondences;

l Technical Reports on project activitiesresult;

l Quarterly and Annual progress reports.These reports adopted the ITTO Manualfor Project Monitoring, Review andEvaluation format ( ITTO, 1999);

l Training system for Sustainable PlantationForest Management Certification Assessor

l Training system for Sustainable PlantationForest Management Certification Expertpanel

l Training system for the Trainers onSustainable Plantation Forest ManagementCertification certification system

l Modules for Sustainable Plantation ForestManagement Certification AssessorTraining;

l Modules for Sustainable Plantation ForestManagement Certification Expert panelTraining;

l Modules for Training of Trainer;

2. Completion Report, the final report whichcomprehensively describe the overall projectexecution; and

3. Audit Report, the financial statement auditedby registered public accountant.

c. Monitoring and evaluation; Quality ofProject Planning

The activity of monitoring and evaluation of theITTO PD80/1 was conducted through projectadministrative evaluation by studying documentsand records of activities process, financial auditing,reporting, and PSC meetings.

Mr. Amha bin Buang, was actively checked andprovided constructive inputs while visiting thesecretariat of the project, so that the projectremained on track. In the PSC meeting, therewas a detailed presentation concerning theprogress that has been achieved, where the PSCthen proposed the extension of the projectwithout further funding, with more focus on theresults of the project. In financial, the project wasaudited by an independent external auditor. The implementation of the project did not varyvery much from the original planning, though anextension period was necessary to smoothlyclose out all of its activities. The activities thatdid not ran smoothly were mostly caused byexternal factors, for example, the delay of the

start of the plantation certification pilot sites asby default certification is a voluntary scheme andthe project had to wait the readiness of the FMU’sto proceed in the certification process. A lessonthat we have learned in this aspect is that in thefuture a more pragmatically though longerduration of the project must be set to anticipateexternal factors that may have impacts on thetime needed to close project.

d. Definition of roles and responsibility ofthe institution involved in the projectimplementation Error! Bookmark notdefined.

Roles and responsibilities of the institutionsinvolved were as follows:1. ITTO provided the fund, monitors and

evaluates the project execution;2. As the executing agency, LEI was responsible

on the project execution;3. MOF (in particular, Center for Human

Resource Training), was the governmentinstitution that has to make the contributionin the creation of the training system;

4. Academic community from variousUniversities and institution, for example: IPB,UGM, UNMUL, also have their contribution;

5. Participation in the compilation of a trainingsystem for the regional consultation forum byNGO’s such as: Yayasan Telapak and ForestWatch Indonesia ;

6. NGO’s in the provincial area that acts asfacilitator for PCF activities and establishment

7. Communities around the FMU as partners ofFCM

e. Actions to be conducted to avoidmisinterpretation of activities betweenthe planned and the actual implemen-tation (schedule, cost, etc)

1. To conduct the PSC, PEA, and internalcoordination meetings regularly;

2. To fulfill the workplan for each output andactivities in order of achieving the projectobjectives successfully;

3. To keep in touch with scientists and inexperts in data and information analysis ;

4. To analyze and write reporting regularly;5. To frequent consultation with the ITTO

secretariat6. Cost-effective in implementing the project

f. Internal factors influencing the project’simplementation that have not beenanticipated

1. The transitional period of LEI management2. The enormous resource to restructure LEI’s

organization into a CBO.

g. External factors influencing the project’simplementation that have not beenanticipated

1. The detoriation of forest situation in Indonesiaat the start of the project declined the interestof FMU to enter the certification process.

2. The longer then anticipated readiness of FMUin the pilot project to ready to be assessed

1.5. Recommendations

1. Making improvement to the communication andcooperation between the stakeholders involvedin this project and maintain it through-out itsexecution.

2. There should be a better consolidation withinthe executing agency to minimize the problemscaused by internal factors.

3. Increase the efforts of maintaining existingcollaboration with the MOF, as one of the majorpartner of the project.

4. More intensive consultation with the ITTOsecretariat, to avoid setbacks caused by delaysin the final installment.

5. Continue to promote for international marketrecognition via the ITTO for certification in theproducing countries.

PART II.

MAIN TEXT

2.1. Project Content

1.1.1. Project Description

The project’s focus was to promote implementation of sustainable forestmanagement (SFM) to ensure increased availability of certified timber fromsustainably managed forest in Indonesia. On the whole, the steps in increasingnumber of certified FMU such as establishment of public awareness throughsocialization, promotion, campaign and training were essential to take in ensuringpublic’s recognition and awareness, and finally, their enthusiasm to involve incertification process. Moreover, the credibility of certification system need to beestablished and constantly maintained to secure public opinion in acceptingcertification system as the tool toward improvement of forest management inIndonesia. The condition can be met through 2 components of this project, theywere:1. Improvement of public awareness on implementation of national and

international sustainable forest management (SFM) certification systems inIndonesia.

2. Establishment of national capacities needed to ensure implementation andmonitoring of credible national and international SFM certification systems inIndonesia.

Component 1 :Improvement of public awareness on implementation of national and internationalsustainable forest management (SFM) certification systems in Indonesia.

The activities of this component can be summarized into four following programs :1. Socialization of National and International Plantation Forest Certification

Systems.2. Establishment of Management Information System (MIS) on nationally and

internationally certified forest products.

3. Consolidation of Provincial CommunicationForum as a certification network for both nationaland international stakeholders.

4. Increasing of public campaigns on SFMCertification and Forest Certification Monitoring(FCM).

Component 2 :Establishment of national capacities needed to ensureimplementation and monitoring of credible nationaland international SFM certification systems inIndonesia.

The activities of this component can be summarizedinto the following programs :1. Development of training system for national and

international Plantation Forest Certification.2. Training for assessors and expert panels for

national and international certification schemesin Indonesia.

3. Improving expertise of National humanresources in certification and certificationmonitoring fields.

4. Consolidation of Certification Review Council.5. Development and implementation of Forest

Certification Monitoring (FCM) System.

2.1.2. Development Objective

The project’s development objective was to focuson promoting of SFM practices implementation, toensure the availability of certified timber fromsustainably managed forest in Indonesia. Since thepublic awareness towards sustainable forestmanagement practises were focused on economicinterests rather than ecological and social aspects,promotion programs were then needed to raiseconcern amongst forest practitioners and public onsocial and environmental aspect of forestmanagement Raising of public interest was alsoimportant to create public awareness on certificationas an effective instrument to promote efforts towardsa better, fair, and sustainable forest practices inIndonesia.

1.1.3 Specific Objectives.

The Project had two specific objectives developedby LEI :

1. Improving of public awareness on implemen-tation of national and international sustainableforest management (SFM) certification systemsin Indonesia. The aim was to strengthen publicconcern on sustainable forest managementpractices and to raise awareness on the benefitof certification as an instrument for promotingefforts towards fair, better and responsiblepractices of forest management in Indonesia byimprovement of certification system,establishment and consolidation of provincialcommunication forum, and promotion ofcertification systems in both national andinternational levels.

2. Establishing of national capacities needed toensure implementation and monitoring ofcredible national and international SFMcertification systems in Indonesia. The purposewas to ensure credibility and effectiveness ofcertification implementation through capacitybuilding to improve the expertise of assessorsand expert panels, as well as setting up thecurricula and manuals for trainings,implementation of forest certification monitoring,and strengthening of certification review councilfunction.

The project activities have been completed throughdesigning of training system for assessor and expertpanel, ensued by conducting of pilot test andimplementation of the system and finally the re-evaluation as a method to carry-out refining system.PRB accreditation process to ensure certificationpersonnel quality was done with target of assistingthe process of personnel monitoring. Activities oninstitutional strengthening for the purpose ofadvocating a more credible and professionalimplementation of LEI certification system were alsoconcluded. In view of that, this project hademphasized the role of relating institutions, like CRC’s

in resolving dispute after certification decision, PRB’sin personnel registration and competency test andCertification body’s in developing the standardoperational procedure.

2.1.4 Expected Outputs

Specific Objective I1. National and International Forest Plantation

Certification Systems are nationally andinternationally socialized

2. Management Information System (MIS) onnationally and internationally certified forestproducts is established

3. Provincial Communication Forum (PCF) as acertification network for both national andinternational stakeholders is consolidated

4. An effective public campaigns on SFMCertification and Forest Certification Monitoring(FCM) is accomplished

Specific Objective 21. An established training system for national and

international plantation forest certification iscompleted

2. Trained assessors and expert panels forcertification implementation in Indonesia areavailable

3. Improvement of expertise of human resourcesin certification and certification monitoringpractices in field is accomplished

4. Certification Review Council (CRC) is maintainedand consolidated.

5. Forest Certification Monitoring (FCM) Systemis established

2.1.5. Implementation Strategy

LEI had executed the project’s activity onconsolidating of sustainable forest managementcertification by close collaboration with keystakeholders in Indonesia. They were included theMinistry of Forestry, prominent NGOs, Associationof Indonesian Forest Concession Holder (APHI),academic and education institutes, local community

and indigenous people. The project was conductedby a project officer and 5 (five) assistants of projectofficers whose appointment was endorsed by theITTO Project Steering Committee. Local experts,members of Provincial Communication Forum, andmembers of CBO-LEI were also involved in theprocess of strengthening the promotion of SFMcertification, nationally and internationally. Local staffwere engaged in running of the project’s technicalaspects.

2.1.6. Project Work Plan

Project Agreement for the implementation of ProjectPD 80/01 on Consolidating Sustainable ForestManagement Certification in Indonesia between TheIndonesian Ecolabeling Institute and ITTO was signedon 14 April 2003. The project work plan wasdiscussed in a series of meetings and was approvedby the Project Steering Committee members.

Component 1 :Improvement of public awareness on implementationof national and international sustainable forestmanagement (SFM) certification systems in Indonesia.

The activities in the improvement of public awarenesson implementation of national and internationalsustainable forest management (SFM) certificationsystems in Indonesia were :1. Printing documents of Plantation Forest

Certification (Sustainable Plantation ForestManagement Certification) Systems

2. Socialization of Plantation Forest Certificationsystems to wider stakeholders

3. Publication and documents disseminations4. Mock assessment and Pilot Projects of

Sustainable Plantation Forest ManagementCertification

5. Procurement and maintenance of hardware andsoftware of Management Information System

6. Maintenance and improvement of internet-basedinformation system

7. Dissemination of SFM certification informationand Indonesian certified forests to Indonesianforest product producers and relevant buyersof certified products

8. Establishment of PCF in 4 Provinces9. Training FCM for PCF members10. Training PCF Members on national and

international Certification Systems for PlantationForests, Chain-of-Custody, and NaturalPlantation Forests

11. Regular consultation meeting for PCF members(4 regional areas)

12. Socialization of data and information on SFMcertification and monitoring

13. Setting up of information kit to increaseunderstanding and participation of stakeholderson SFM certification monitoring

14. Promotion of Indonesian certified timber andpublication of certification newsletters to allstakeholders

15. Informative campaign with various stakeholderson SFM and forest certification

Component 2 :Establishment of national capacities needed to ensureimplementation and monitoring of credible nationaland international SFM certification systems inIndonesia.

Activities in the establishment of national capacitiesneeded to ensure implementation and monitoring ofcredible national and international SFM certificationsystems in Indonesia were:

1. Workshops on curriculum designing for assessorand expert panel trainings

2. Workgroup meetings to compile training manualsfor assessor and expert panel

3. Refining of training system for assessor andexpert panel

4. Setting up of system for recruitment andmonitoring of assessors and expert panels

5. Training for trainers on national and internationalPlantation Forest Certification systems

6. Training for assessors by trained trainers7. Training workshop for decision panel members8. Monitoring of assessors and expert panel

members by the Personal Registration Body9. Non-degree (short-term) trainings on subjects

relevant to forest certification

10. Internal project management course to increasecapabilities of implementing agency

11. Operation of CRC secretariat12. Regular CRC meeting13. Designing of Forest Certification Monitoring

System (FCM)14. Designing of Procedures for Forest Certification

Monitoring System15. Public consultation on FCM system16. Monitoring of certified forests in Indonesia17. Field verification on information collected

through the stakeholder’s monitoring activities

2.1.7. Required Inputs *)

Required fund and the fund provided by ITTO forthe project on Training Development onConsolidating Sustainable Forest ManagementCertification in Indonesia were as follow:

*) Exclude Ford Foundation and Implementing Agencycontributions

2.1.8. Project Rationale

Achieving SFM is a problem exacerbated by the factthat installed capacity of the Indonesian timber-processing industries, estimated at 63.5 million cubicmeters, is way above the sustainable level of timbersupply. Even if additional sources of timber such as

No Project Component ITTO (US $)

1 Project personnel 62,055.90

2 Sub Contracts 33,744.96

3 Duty Travel 90,037.53

4 Capital Item 60,103.29

5 Consumable Items 67,259.87

6 Miscellaneous 14,813.59

7 ITTO Monitoring & Evaluation

42,875.80

community forests and forest conversions areincluded, the capacity is still too large. Whileestimations of the excess capacity vary, many believethat it is in the order of 30 million cubic meters perannum. With such level of excess capacity (whichalso means a high level of supply shortage), theproblem of illegal logging is imminent. Huge excess ofcapacity also means that most of the Indonesiantimber-processing industries are unable to purchaseSFM certified timber. They have to make do withnot only non-certified, but also illegal woods. As longas demands for illegal woods exist, it will be extremelydifficult to suppress illegal logging. In achieving thedesired effect of implementing credible certificationsystem, some problems must be addressed.Constraints that must be addressed can be dividedinto internal and external preconditions. Internal oneswas monitoring work to ensure the credibility of thecertification and to build the institutional capacity toimplement it. While external preconditions wereincreased public support as well as market andgovernment policy to generate suitable preconditionfor Forest Management Unit to achieve SustainableForest management (SFM) certification. This projecthas helped to speed-up the implementation ofsustainable forest management certificationimplementation as indicated by increasing numberof certified FMUs.

2.1.9. Relevant Background Information

The Indonesian Ecolabeling Institute (LEI) was firstestablished in 1994 as a working group led by Prof.Dr. Emil Salim. On February 6, 1998, LEI was officiallyestablished as a non-profit legal entity. In June 1998,the National Standardization Body of Indonesiaofficially adopted the SFM Certification System forproduction forests developed by LEI and forestrystakeholders. Up until now, LEI have been developedcertification systems for: natural production forestmanagement, plantation forest management,community-based forest management, and chain ofcustody certification system for forest productprocessing industry. In October 2004, LEI has beentransformed into a constituent-based organization.LEI-CBO have 4 (four) chambers of constituent

(eminent persons, private sectors, NGO/academician,and community and indigenous people chambers).Within this newly transformed organization, LEIreceived mandate from the four chambers topromote SFM by implementing certification inIndonesia.

LEI’s vision is to become an organization striving forexcellence achievement in sustainable naturalresource management.LEI’s missions are :a. Developing of a credible ecolabel certification

scheme and monitoring system of naturalresource management

b. Promoting and supporting of policy onsustainable and fair natural resource management.

c. Promoting and supporting of natural resourcemanagement models and practices performed byconstituents including indigenous people.

LEI is currently having three accredited CertificationBodies and one Personnel Registration Body thatcarry out LEI’s SFM certification system in Indonesia.

2.1.10. Project Location

The project was not implemented in any specificallydesignated area. The training and workshops werecarried out in Bogor, Solo, Nganjuk, Jogja, and Cepu.Field works for mock assessment were done in PTMusi Hutan Persada, South Sumatra and PerumPerhutani KPH Nganjuk, East Java. Other field worksof forest certification monitoring were conducted inCentral Kalimantan. Provincial communication forummeetings were conducted also in Riau, Jambi, SouthSumatera, and West Java.

2.1.11. Previous Preparatory Activities

A series of discussion with several FMUs had beenconducted to introduce the ecolabel certificationsystem as a reliable tool toward a better condition ofFMUs, as well as exploring of market access and otherpossible incentives as the reward after implementingcertification. Certification systems, particularly forplantation forest were ready to be fully implemented,

the same applied to training materials for maintainingcapacity of certification personnel (assessors andexpert panels). Regional network to strengthencertification process through provincialcommunication forum were already set up byprevious project, although re-consolidation must beconducted to share the most updated informationat the time.

2.1.12. The ITTO Context

a. Compliance with ITTA 1994 Objectives

The development objective of this project was infull accordance with concerns of ITTO and theobjectives of ITTA 1994. This project will greatlypromote the importance of certification and thesustainable management of the forest as itsprecondition. This in turn will contribute inproviding the great need of the internationalmarket with certified tropical wood and productsfrom Indonesia, thus increasing the value andfoundation of present and future sustainable woodcommerce.

This project complies with the framework of theEconomic Information and Market Intelligencecommittee. The activities of this project wereespecially related to the following ITTA 1994objectives:a. To provide an effective framework for

consultation, international cooperation andpolicy development among all membersregarding all relevant aspects of the worldtimber economy;

b. To provide a forum for consultation topromote non-discriminatory timber tradepractices;

c. To enhance the capacity of members inimplementing a strategy for an achievementof tropical timber and timber productsexports from sustainable managed sources byyear 2000;

d. To promote the expansion and diversificationof international trade in tropical timber from

the sustainable sources through improvementof structural conditions in internationalmarkets, by considering, on one hand, long-term consumption increase and supplycontinuity, and on the other hand, prices thatreflect the costs of sustainable forestmanagement as well are remunerative andequitable to the members, added byimprovement on market accessibility;

e. To improve the market intelligence with a viewof ensuring greater transparency ininternational timber market, including thecollection, compilation and distribution of datarelated to trade, including on species beingtraded;

f. To improve marketing and distribution oftropical timber exports from sustainablymanaged sources.

With emphasis on consolidation and enhancementof the existing certification design while promotingthe availability of certified wood from Indonesiathis project has fully been complied with theobjectives of ITTA 1994, explicitly and implicitly.

The specific objectives of this project were asfollow:a. To improve public awareness on

implementation of national and internationalsustainable forest management (SFM)certification systems in Indonesia

b. To establish national capacities needed toensure implementation and monitoring ofcredible national and international SFMcertification systems in Indonesia.

The result of this project contributed to numberof certified sustainable forest management inIndonesia as well as product availability forinternational trading.

In order of achieving this, credible sustainableforest management certification systems togetherwith institutional capacity to implement them inIndonesia is a must. This project aimed to providenecessary prerequisites by further development

of certification systems, monitoring of present andfuture certification implementation, training andupgrading of personnel involved in certification,establishment of regional and local forums toimprove elevant stakeholders’ collaboration andlastly, establishment of a certification centre as thedistributor of related certification materials anddata.

In this regard, this project acts in accordance withseven priorities of action essential for the progresstoward the ITTO Year 2000 Objectives, inparticular:l Apply reduced impact loggingl Limit timber harvest to the sustainable yield

capacityl Raise public awareness that timber harvesting

can be made consistent with sustainable forestmanagement

b. Compliance with ITTO Action Plan2002-2006

The project complies with most recent ITTCdecisions and action plans and in line with ITTCDecision 5 (XXXI) on strengthening sustainableforest management and controlling illegal loggingin Indonesia.

With reference to ITTO Yokohama Action Plan2002-2006, in the field of Economic Informationand Market Intelligence, the project’s compliancewith Goal 1 and 2 is described below.

Goal 1: Improve Transparency of the InternationalTimber Market

The project (especially its management informationsystem) had provide regular assessment andmonitoring to fill data gaps and assisted in collectionand analysis of information on sustainable timberharvesting, plantation forests and certifiedproducts. The project can provide inputs to ITTOmarket outlook studies, if needed. Consequently,the project helped fulfilment of this goal.

Goal 2: Promotion of timber supply fromsustainably managed sources.

The project consolidated SFM certification inIndonesia through implementation of crediblecertification by establishing all necessary nationalcapacities. With increased public campaigns onSFM certification and certification monitoring, itencouraged more forest management units to joincertification. An increased availability of tropicaltimber from sustainably managed sources inIndonesia was at hand. One of the project’soutputs, i.e. increased public campaigns, is also inline with Action# 1 of the Goal, that is, topromote public awareness of progress made inimplementing SFM and in an increased availabilityof tropical timber from sustainably managedsources.In the field of reforestation and forestmanagement, the project assisted achievement ofthe following goal:

Goal 3: Promote Sustainable Management ofTropical Forest Resources.

Criteria and indicators (C&Is) for naturalproduction forests implemented in Indonesia werederived from and fully compatible with the ITTOprinciples (see Appendix C1). Consolidation andimplementation of certification in Indonesiameant that ITTO guidelines and Criteria andIndicators were implemented thoroughly in SFMcertification. As certification systems involve notonly C&Is, but also certification procedures anddecision-making systems, the project helpedestablish and promote the implementation of anaudit system for ITTO’s C&I for sustainablemanagement of tropical forests.

Criteria and Indicators for Plantation ForestCertification in Indonesia, which was developedthrough a transparent and participatory multi-stakeholder approach, were derived from ITTOguidelines for the establishment and sustainablemanagement of planted tropical forests (ITTOPolicy Development Series 4). Consolidation and

implementation of certification for PlantationForest Certification through this project promotedimplementation of guidelines for management ofsecondary tropical forests, especially plantationforests. This also helped in monitoring and assessingof environmental, social and economic costs andbenefits of forest plantation development.

2.2. Project Context

2.2.1. National and Sectoral DevelopmentObjectives

The Foundations for forest policies in Indonesia werelaid down in the Forestry Law (Law No. 41/1999),which subsequently elaborated in the Ministry ofForestry’s Strategic Planning. At present, the Ministryand all forestry stakeholders have been workingtogether to develop a National Forestry Program inIndonesia.

Laws No 22/1999 and 25/1999 provided additionalprinciples, particularly with regard to the relationshipbetween central and regional governments in theforest management. Then, Laws No 32 was revisedby Law No 32. Distribution of more authority toregency level has often collide with the problem oftechnical incapability in the management of forest andenvironment Through this project, LEI shared therole of local government during the events ofsocialization and Sustainable Plantation ForestManagement Certification establishment.

The Indonesian government is committed to achievea sustainable management of forest resources. Thiscan be seen from, inter alia, the government’s forestrycommitments to the Consultative Group onIndonesia (CGI) the group of donating countries andinstitutions, in February 2000. Consisted of twelvemajor items, these commitments spelled out clearlythe government’s short-term policies in restructuringthe forestry sector. Of these eight, the governmenthas determined to give priority to five most crucialissues, being illegal logging, forest fire, restructuringof the forest industry, reforestation through

plantation forest, decentralization of forestmanagement.

In the area of SFM certification, both the Ministry ofForestry and LEI recognized that SFM certificationshould be conducted on a voluntary basis. This is inaccordance with the key principles of certification,that is, voluntary, multi-stakeholder approach andindependent third-party assessment. Both theMinistry and LEI also have similar point of view onthat SFM implementation should be madecompulsory by the government.

The project was also engaging LIPI (in specific, LIPI’sStandardization division of Pustan LIPI) by delegatingthe function of personnel registration on personsinvolved in LEI’s certification process. Moreover, anagreement between LEI and Forestry Ministry hasbeen made in carry-out a joint-capacity building by2006, where all personnel involved in ForestryMinistry’s mandatory verification will be trained andgiven competency test by Pustan LIPI PRB.

2.3. Project Design and Organization

2.3.1. Adequate Identification

This project was initiated by identification of needson the pre-condition and the implementation of LEI’scertification system. Analysis on assessor’s and expertpanel’s needs was required in defining the programfor developing of training system and capacity buildingfor implementation. How to introduce cerficationsystem being designed and certification system thathad been carried-out to relevant parties which alsoLEI’s constuents? For this purpose, the projectidentified what type of media applicable, how wasthe method of delivery, who were the targets forpublication and campaign and how many deliveryfrequency was. In the context of SustainablePlantation Forest Management Certificationcertification system implementation, identifying theneeds on certfication personnel from both sides,quality and quantity was crucial in assuring a credibleimplementation of Sustainable Plantation ForestManagement Certification certification.

2.3.2. Conceptual Foundation

The rational of this project was addressed toavailability of documents used by public. Timeconstraint from involving parties often appearedduring development of certification system based onstakeholder approach. A number of activities faceddelay by external factor, such as to carry out mockassessment (pilot project) of Sustainable PlantationForest Management Certification certification system,the existence of PFMU that applies for certificationwas a crucial factor. The constraint affected the nextactivity, which were refinement of the system anddocument printing on refinement work result.

Some external influence has also effected theimplementation of the project. Unclear marketincentives for certified FMUs caused FMUsreluctancy to enter certification process, and inaddition, government incentives only availablethrough a process of negotiation. But thetransformation of LEI becoming CBO has been quitea help to raise support and acceptance among civilsociety and private sectors. This kind of acceptancehas promoted trust and sense of ownership oncertification scheme among them, which changedtheir reluctances to became hopes.

LEI’s organizational change into a CBO broughtconsiderable impacts on project activities, since anumber of adjustments in organizational structurehad also must be made. Several project activities faceddelay waiting for the transformation process ofProject Officer and Executive Director that neededquite some time to settle. The undertaking of theprojects was much smoother after the transition wascompleted in the early 2005.

2.3.3. Adequacy of Time and otherresources for Project Formulation

The project was formulated through variousconsultations with identification of problems thatmust be addressed before the actual projectformulation process was done. Because it wasbelieved that more focus on some of the outputscan be specified, the project was extended to 31December 2005 without any additional funding.

2.3.4. Acceptance and Essentiality of theRoles and Responsibilities ofInstitutions Involved in the ProjectImplementation.

The roles and responsibility of the institutionsinvolved were appropriate as they were the mostrelevant and suitable parties to be involved in theproject. In the execution of the project eachinstitution had obviously made a clear understandingand comprehension of their roles and duties.

2.3.5.Beneficiary Involvement with theProject’s Efforts and Actions

As the main project beneficiary, LEI engaged closelywith project’s efforts and actions. As the executingagency LEI has coordinated the efforts of thenumerous institutions and individuals that havesupported the completion of this project. They werethe academic community represented by AgricultureInstitute of Bogor, University of Gadjah Mada,University of Indonesia have helped to enhance thescientific foundation of the project, Civil Society andNGO’s; such as AMAN, PERSEPSI, PPSHK, ForestWatch Indonesia, Jikalahari, Walhi, WWF, and manyothers. Additionally, Association of Forest ConcessionHolder, whose members came from forestconcession companies had provided field facilities,technical staff and accommodations for trainings andpilot testing. Last but not least, consultant in humanresources development such as One Link Consultingwas a potential partner with possibility for futureproject management course.

2.4. Project Implementation

2.4.1. Significant differences betweenplanned and actual projectimplementation

a. On CostThere were no critical difference between theplanned budget and actual project implementationwith regard to the cost of the project. A completeaudit of the financial aspects of the project wasscheduled to follow this completion report.

b. On ScheduleThere were no adjustment made on all outputsand activities of this project, whether from thestart to the end, they were all carried outaccording to the framework of YPO I and YPO II.Based on the Project Steering Committee (PSC)Meeting on 31 March, 2005 in Bogor - andconsidering request and demand on PSC’srecommendation – LEI proposed an extensionwithout additional ITTO funds for this project toITTO. The Executive Director of ITTO thenapproved an extension of time and amendmentof budget without additional ITTO funds for thisproject. The delay in schedule for projectimplementation was mainly caused by LEI’sorganizational transformation (from a foundationinto a CBO).

c. On ComponentsComponents relating to raising of publicawareness towards implementation of SFMcertification in Indonesia which increase theavailability certified FMUs was accomplished,following after a series of regional/provincialmeetings, workshop, and seminars involving multistakeholder participants from government, civilsocieties, community, and academicians. Trainingswere also held by involving capable individuals andqualified institutions. The individuals came fromsenior assessors, expert panels, and forestpractitioners who know how to do in the field,while institutions involved were from the Instituteof Agriculture Bogor, Gadjah Mada University andMinistry of Forestry. The criteria and indicatorshave been tested in a mock assessment and alsoin several pilot projects which resulted inrecommendations for refinement. Thecertification system has been refined and readyto be fully re-implemented. Publicity productssuch as brochures, posters, books, and manyother means were applied in promotion andcampaign programs.On establishing national capacities of certification,trainings and forest certification monitoring weremethods to increase credibility of the system, and

these also had been well-conducted. However,LEI’s transformation of becoming a CBO generatedsupport and sense of ownership of the members,and as result, monitoring mechanism must beshared among the concerning stakeholders andmembers. With that mind, LEI as an AccreditationBody must be able to coordinate this mechanismwith other institution with adequate capability ofdoing the monitoring and communicating, toperform the tasks of sharing information relatingto certification process as transparent as possibleand with full responsibility.

d. On Output achievements

In general, overall accomplishment of the projecthas encompassed all expected outputs inaccordance with YPO I and YPO II withoutsignificant differences.

2.4.2. Measures and actions which couldhave avoided these variations

a. Better cooperation and execution with some ofthe related stakeholders

b. Better knowledge of the fund disbursementsystem

c. Better coordination with the ITTO secretariatd. Better regulation certaintye. Better coordination with Ministry of Forestry as

a leading partner of the project

2.4.3. Acceptability of Assumptions Made

Assumptions made on the project background,justification, objectives and expected outputs wereappropriate. Assumptions on implementation weremostly correct, however as the project was inprogress a time extension without further fundingfor the project was needed. granted by thecommittee for an extension for output of thesocialization of national and international forestplantation certification system (output 1.1) whichcaused by the delay of implementation of activity1.1.4. for conducting pilot project of forest plantation

certification. The delay was caused by external factorssuch as the preparation of FMUs to enter certificationprocess.

2.4.4. Acceptability of Accurateidentification of the risks involved

The restructuring and transformation of organizationof the implementing agency and FMUs readiness inentering certification process were among the issuesthat were not foreseen that had came up during theproject which also effected the speed of the project.

2.4.5 Project Sustainability after ProjectCompletion as a result of projectimplementations conditions

The sustainability of the project is assured withcontinuation of trainings of personnel involved in LEI’sSFM certification by LEI itself and by new LEI’s PRB.With experience the methods of promotion of LEI’scertification scheme to raise acceptance amongdomestic and international stakeholders will beimproved and refined. With its new form oforganization, LEI-CBO received wider nationalacceptance than before, moreover the constituenthave given mandate to LEI-CBO to develop theprogram of phased-approach to certification. Thiscondition will positively support the continuationoutcomes of the project and consolidation of SFMimplementation and certification in Indonesia.

2.4.6 Acceptability of project inputs

The Financial, material, personnel, and inputs receivedby implementing agency had been appropriate

2.5. Project Results

2.5.1. Situation upon project completion ascompared to the pre-project situation

In line with the Development Objectives and SpecificObjectives the main focus of the project has been

to improve public awareness on implementation ofnational and international sustainable forestmanagement (SFM) certification systems throughimprovement of certification system, establishmentand consolidation of provincial communicationforum, and promotion of certification systems inboth national and international levels. The projecthave also concentrated on reinforcing availability ofqualified personels to implement SustainablePlantation Forest Management Certificationcertification. They were in particular, assessors andexpert panel. Furthermore, the activities continuedby target of increasing the capacity of the institutioninvolved in certification SFM through establishmentof networks and dissemination of information amongmulti stakeholders of SFM campaign. Significantchanges after the project completion were as follow:

1. Refined LEI Sustainable Plantation ForestManagement Certification system, the refinementof the LEI Sustainable Plantation ForestManagement Certification system was donefollowing improvement on data collection andanalysis method developed by this project.Through field test and implementation of thesystem, practical experience were gained andapplied. One of the four PFMUs applied forcertification was PT RAPP, which then grantedcertificate by PT Mutuagung Lestari. Altogethersince year 2002 four Natural Forest ManagementUnits, two Community-based forest managementunits, and one plantation forest management unithave been certified.

2. An established system of training for personnelin sustainable plantation forest managementcertification. The system comprises of manuals,curriculums, and modules for assessors, decision-making panels and trainers, and has been widelyused as the basis for other trainings conductedby other SFM-relevant parties, among them theAPHI (Indonesian Forest Concession HolderAssociation) and Center of Education andTraining of MoF. These trainings were an additionto trainings originally conducted by LEI and itsaccredited training institutions.

3. Availability of 67 trained sustainable plantationforest management certification assessors frommany different backgrounds in forestry andregions, 39 qualified trainers in the field of eithersocial, ecology, production and all-round forestrypractices, along with 37 trained decision- makingpanels from many different backgrounds inforestry and regions.

4. A Communication Portal as Center ofCertification Database. where information oncertification can be shared from and to thestakeholders of various backgrounds by usinginternet-based communication. The aim of thisCommunication portal was to raise publicconcern on sustainable forest managementpractices and raise awareness on the benefit ofcertification as an instrument for promotingefforts towards fair, better and responsiblepractices of forest management in Indonesia byimprovement of certification system andpromotion of certification systems in bothnational and international levels.

4. Establishment of Provincial CommunicationForum for all stakeholders at provincial level. Asan effective field partner in the establishment ofSFM, PCF took significant role in providingbalanced information concerning certificationsubjects, forest and environmental generalconditions in the respected area. In-flight ofimpending autonomy for provincial governmentswhere many policies concerning SFM will bedetermined by provincial and districtgovernments, regional consultation has thepotential to become a strategic forum forstakeholders from all sides of the spectrum tomeet and discuss relevant issues of environmentnot excluding certification.

2.5.2. Extent to which the project’s SpecificObjectives was Achieved

The project’s specific objectives were fully achieved,by the end of the project.

2.5.3. Impacts of the Project’s results on theprograms of various sectors

The greater part of refined standards and proceduresof Plantation Forest Certification has been adoptedby MOF for establishment of mandatory verificationsystem.

The enhanced human resources development effortsthrough this project will enable the MOF to increaseIndonesia’s professional assessors and expertsaddressed to fulfill its competency standard.

Public socialization process and campaign programbrought up public’s awareness on national scale. Theactivities included issuance of posters and bookletand news releases through various national and localprinted medias.

2.5.4. Project sustainability after projectcompletion as a result of projectconceptualization

Next to dispensing of positive impact to beneficiaries,this project had also set a starting point and lesson-learned in educating the public. The system ofPlantation Forest Certification that had beenrecognized by the stakeholder was adopted as toolsin PFMUs assessment by certification bodies. TheSustainable Plantation Forest ManagementCertification system had been used as internalmonitoring and evaluation tool by PFMUs, non-profitorganization like Forest Watch Indonesia (FWI),AMAN and so on, in conducting external certificationmonitoring. Assessors and Expert Panel trained bythis project were capable of being employedpermanently or temporarily (by contract) forcertification assessment by Certification Bodies. Thetraining system developed through this project ispotential to take up as reference for Training Bodiesand other parties expecting to conduct a collaboratingtraining with LEI. Development of internet-basedCommunication Portal brought a more simplifiedcommunication among LEI constituents and amonginstitutions under LEI’s Executive Body.

2.5.5. Assumptions made and conditionsprevailing at completion

Due to some unpredictable factors in transformationof LEI Foundation into a CBO, and since an extensionof the program without additional funds for projectfrom the initial completion date of April 2005 wasapproved, the project was not ended on originallyplanned time. The purpose of extension request wasto strengthen specific outputs and activities of theproject with view of enlarging of target beneficiariesof the project and strengthening the focus of its mainobjectives of developing assessor’s capabilities in thefield assessment and enhancing of Executing Agencycapacity building, through Non Degree Training onmanagement and forest certification-related subjects.

2.6. Synthesis of Analysis

a. Specific Objectives achievementl Realized: Specific objectives 1 and 2 have been

fully realizedl Partly Realized, Nonel Unrealized, None

b. Outputsl Realized: The outputs of this project has been

realizedl Partly Realized, Nonel Unrealized, None

c. Schedulel In advance/ on time : Developed and

implemented forest certification monitoring(FCM) System, Consolidated CertificationReview Council, Improved expertise ofNational human resources in certification andcertification monitoring fields, andConsolidated PCF as a certification networkfor both, national and international stakeholder

l Delayed, not seriously,l seriously delayed

d. Actual Expendituresl Below planned;l 10% above planned; Nonel 20% above planned; None

e. Potential for replicationl No potential, Nonel Modest Potential: A number of outputs from

this project need to be followed-up based onPHBML certification system improvement,development of PCF in several provinces andpotential development of phased-approach tocertification program. Certification systemimprovement is closely relate to personnelcapacity requirements and to institutionsactively involve in certification. Additionally, theprograms for website maintenance andcommunication portal also need to becontinued.

l Significant potential, None

f. Potential for Scaling-upl No potential, Nonel Modest potential, Several outputs of this

project desired continuity and follow-up asresult of CBFM certification improvement, theprogress of PCF in several regions, and thepotential to develop phases-approach tocertification program. Certification systemimprovement would be closely relate withpersonnel capacity requirement and theinstitutions actively involved in certification,thus the project’s scope is needed to beextended.

l Significant potential, None

PART III.

CONCLUSIONAND RECOMMENDATIONS

3.1. Development Lessons

In general, development lesson of the project were as follows:

a. Implementation of Sustainable Plantation Forest Management Certification inIndonesia was to the highest degree a subject of PFMUs commitment on startinga certification process with all the implications. All the same, this commitmentwill come after government’s policy over plantation forest management and theincentives intended for PFMUs should they perform a well-management of forest.Local government’s awareness on SFM and SFM certification system which wasnot entirely comprehensive resulted in the design of local policy that was notextensively accommodating certification pre-conditions.

b. Development of PRB as an institution conducting control on and competencytest for certification personnel had been for several times delayed. A numberof PRB candidates were failed in accreditation process on the grounds of financialmatter.

3.1.1. Strenghtening the Sustainable Plantation Forest ManagementCertification System

a. Although the scheme and logical framework of LEI’s Sustainable Plantation ForestManagement Certification system were almost similar with previous certificationsystems of LEI’s it was still incomprehensible the to stakeholders like CertificationBodies, PCFs, assessor and expert panel. By this situation, a two-timessocialization process would not be adequate, in fact, it should be done in anumber of times with wider target groups.

b. PCF and the public should use LEI’s certification system to control certificationactivities carried-out by certification bodies. They were obliviously do not make

the most of dispute appeal instrument as meansto complaint against certification decision and togive inputs during certification assessment anddecision-making.

c. Mandatory certification scheme developed by MoFwas mainly an adoption of LEI’s system, only theparts in procedures and pre-condition that werenot there. The government was then asked for aJoint Capacity Building program together with LEI,where trainings and competency assurance wereprovided for mandatory certification systempersonnel. For this purpose, LEI’s training systemthat originally designed for voluntary-based thirdparty need to be modified to meet government’scertification conditions.

d. Insufficient government regulation to supportSFM implementation in both ForestManagement unit level and National level.

3.1.2. Strengthening the CertificationPersonnel Capacity

LEI’s Sustainable Plantation Forest ManagementCertification certification personnel was mainlyassessor and expert panel. They represented the vitalpart of LEI’s certification system. Limited amount ofinterest on assessor’s and expert panel’s training,participant with unsupporting backgrounds, fieldpractice restriction, and the complexity of LEI’scertification system that equally needs a more solid,attractive and constant material delivery system werethe constraints on expected qualities. After passed atraining, a person still need to strengthen his/herexperience through performing of a real assessment.The status and progress of an assessor were registeredby the PRB, in this case, the Pustan LIPI.

3.1.3. Strengthening the Institutional Capacity

The National Capacity as meant by this project wereparties with capacities to determine successfulachievement of LEI’s Sustainable Plantation ForestManagement Certification certification implemen-tation. Weaknesses that had been identified on

certification bodies were: 1) low control on personnelthey hired to conduct certification process broughtthe consequence on quality unreliability of the workresult; 2) PCFs appeared to be quite helpless (in time,cost and personnel) to perform extensive study onmanagement unit as the certification subject, at thesame time, restricted acess to enter PFMUs area; 3)as an CBO, LEI demanded changes in a number oforganizational structures, including CRC’s (before, apermanent team and presently, an ad-hoc team)

3.2. Operational Lessons

In general, lesson-learned from this project’simplementation were:

a. Time constraint of LEI’s experts and trainers and/or time mismatch. This condition had someeffects on activities delay.

b. Organizational transformation of LEI into a CBOwas followed by frequent number of meetingbetween LEI’s executive body and LEI’sconstituent. In addition, the change in LEI’sexecutive body organizational structure followingthe transformation had also brought delay toseveral activities.

c. A number of project activities were depend onon externally controlled doings, for instance,starting of Sustainable Plantation ForestManagement Certification mock assessment forpilot project was entirely the responsibility ofPFMUs applying for certification.

3.3. Recommendation for Future Projects

3.3.1. Identification

a. The National Capacity need to be intensified withknowledge on Sustainable Plantation ForestManagement Certification as a market instrumentand certification as the tool to both driving towardSFM and preventing illegal logging

b. In future, natural forest management will becomemore restricted, thus efforts to promotesustainable community-based forest managementneed to be developed, the stakeholders ofcommunity forest need to be given awareness onsmall- and medium-scaled community forestcertification.

c. The role of Pustan LIPI as the PRB should bestrengthened to ensure a more firm control overcertification personnel.

3.3.2. Design

The Project shall improve communication anddevelop cooperation among stakeholders involvedin the project and maintain it through:

a. Development programs on public awareness withregard to SFM certification, to reach as far as theoperating level such as regencies and sub districts.

b. Building networks among LEI, the Government,NGOs, Certification Bodies and other parties withconcern on certification, in order to enhance thecredibility of LEI’s system and to developcommunities’ participation in controlling themanagement of forest.

3.3.3. Implementation

a. In designing and implementing the projectuncontrollable external factors must be avoidedas much as possible to prevent delays

b. Experts and consultants hired for the project shallbe those who have adequate time and availabilityand with high credibility/credentials to accomplishtheir assignments timely

c. Financial documents were prepared with highaccuracy, properly controlled and monitored byauthorized persons

d. More intensive consultation with the ITTOsecretariat, to avoid setbacks caused by delays inthe final instalment.

3.4. Organization

There should be a better consolidation within theexecuting agency to minimize the problems causedby external factors:

a. LEI should be accepted as the controller of LEI’saccredited certification bodies, including theirhired assessor and expert panel.

b. LEI should be at constant communication withProvincial Communication Forum as the localinitiatives that contribute in fact-finding tocomplete the forest assessment data

c. LEI must repetitively conduct campaign in theinternational world, specifically in countries thatsit as the destined countries of exported certifiedwood.

d. LEI should be hand in hand with Non GovernmentOrganization as system controller

3.5. Management

There should be a better consolidation within theexecuting agency to minimize the problems causedby internal factors:

a. Project Officer must be responsible on controllingthe project activities and outputs

b. Executing Agency need to continuously developits capacity in project management

4. Project financial management need to be doneon more systematic basic, by employing a financialsystem that ensures a good administration offinancial matters.

Responsible for the Report

1. Name: Taufiq AlimiPosition held: Executive DirectorDate: March 31, 2006

2. Name: Daru AsycaryaPosition held: Project OfficerDate: March 31, 2006

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