Case Studies in Forestry Reform and Market Developments

Presented at World of Wood Annual Convention, April 5-7, 2017

San Francisco, California

Exports of Indonesian Plywood to the North

American Market under Indonesias SVLK

Legality Certification Program

by Gunawan Salim, APKINDO Board Members

SVLK (TLAS = Timber Legality Assurance System) AS A SHIFTING PARADIGM

FROM COMBATING

ILLEGAL LOGGING AND

ASSOCIATED TRADE

TO

PROMOTING LEGAL

TIMBER TRADE

To combat illegal logging and illegal trade

To ensure that Indonesia timber products are

legal

To improve Indonesias forestry governance

To support and accelerate the implementation

of sustainable forest management

Objectives of SVLK

The Parties Involved in SVLK

Regulator & facilitator Goverment

National Accreditation Body Accreditation third party certification

bodies KAN/NAC

Assessment/Verification business unit management

3rd

Party

Certification

Body

Concessionaire Holders & Manufactures Business Unit

Management

Independent Monitoring

Monitoring the implementation of the SVLK

CSO (Civil Society

Organisation)

National Accreditation Body (KAN)

THIRD PARTY CERTIFICATION

BODY

BUSINESS MANAGEMENT

Appeal Audit

Appeal Audit

Independent Monitoring by CSO

Accreditation

Certificate

SVLK Certificate

SILK = License Information Unit

V-Legal Document

It is not easy to obtain SVLK certificate due to the company must be able to

show all the legal documents of the company and to show all the documents

of raw material (100%) for one year to be examined by an independent auditor

Objection

Objection

Export

Appeal V-Legal

Doc

through

1. Raw Material is guaranteed coming from legal sources

2. Wood process in the factory goes through :

Product recovery or efficiency

Traceability from finished product back to raw material

Waste management is properly conducted

3. Ensure that industry do not violate any Indonesian government trade

regulation such as export of Round Logs and Rough Sawn Timber,

also compliance with International regulation such as CITES

(Convention on International Trade in Endangered Species of Wild

Fauna and Flora)

All APKINDO members have SVLK Certificate

Development

of SVLK with

multi

stakeholders

Implementaion

of SVLK

Certification

30 September

2013, Signing

FLEGT-VPA

(milestone)

Bilateral

cooperation

with USA,

Japan,China

, UK,

Australia

FLEGT-VPA

negotiations

Indonesia-EU

Oct 22, 2012 All exporters must

have SVLK

Certificate

Implementation of

V-Legal Document

Ratification :

-EU 27 Feb

-INA 13 March

Nov 15, 2016

Full Implemention

of FLEGT-VPA Bali FLEG

Declaration

2001

2002

2003 - 2009

2007

2009 - 2011

2013

2016

2014

2012

6%

40% 45%

9%

Percentage of plywood production by region

Sumatera Kalimantan Jawa East Indonesia

3.00

3.25

3.50

3.75

2011 2012 2013 2014 2015 2016

Mill

ion

s cb

m

Source: Indonesian Ministry of Environment & Forestry

Note : volume is a convertion of weight (ton) based on assuming specific gravity

Source : Indonesian Statistic

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mill

ion

s

Volume, cbm

0.00

0.50

1.00

1.50

2.00

2.50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Bill

ion

s

Value, USD

-

500

1,000

1,500

2,000

2,500

2013 2014 2015 2016

CHINA

JAPAN

USA

REP. KOREA

OTHERS

Export of Indonesian Plywood (HS 4412)

Volume in 1,000 cbm

Note : volume is a convertion of weight (ton) based on assuming specific gravity (0.35 for sengon & 0.6 for other wood)

Source: Indonesian Ministry of Environment & Forestry

-

100

200

300

400

500

600

700

800

900

2013 2014 2015 2016

CHINA

JAPAN

USA

REP. KOREA

OTHERS

Source: Indonesian Ministry of Environment & Forestry

Export of Indonesian Plywood (HS 4412)

Value in USD 1,000,000

Source : Foreign Agricultural Service, United States Department of Agriculture

-

100,000

200,000

300,000

400,000

500,000

600,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Volume, cbm

-

50,000

100,000

150,000

200,000

250,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Value, USD 1,000

Source : Foreign Agricultural Service, United States Department of Agriculture

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2012 2013 2014 2015 2016

Mill

ion

s c

bm

USA Import

China

Indonesia

Russia

Canada

Ecuador

We believe that

SVLK has an important role in

improving the implementation

of sustainable forest

management in Indonesia

and increasing the export of

Indonesian legal wood

products to the world

BUY FROM INDONESIA

you will be able to sleep

peacefully

if you want to buy or sell of

legal plywood