svlk: improving forest governance and promoting trade of legal timber products from indonesia

SVLK: Improving Forest Governance and Promoting Trade of Legal Timber Products from Indonesia

WHAT IS SVLK ?

Indonesia initiates the development of its own timber legality assurance system, called the SVLK (Sistem Verifikasi Legalitas Kayu) since 2001 to complement the tough law enforcement policies to combat illegal logging. At the time SVLK, Indonesia was notorious as an ‘illegal logging’ country. Law enforcement alone could not stop the massive logging of the forests, especially in a decentralized state like Indonesia, where natural resources management are in the hands of local governments. SVLK therefore complements law enforcement measures in combatting illegal logging by utilizing market forces and providing incentives for the timber-based industry to trade their products in a sustainable manner.

Sustainability of Indonesia’s forests, the primary source of the timber-based industry, is the key objective of SVLK. The system provides incentives for legality by promoting market access for verified legal products and blocking market access for illegal products. SVLK promotes broader governance reforms, such as improved information, transparency, and capacity and community rights. The system was developed through multi stakeholder consultations involving government agencies, the private sector and civil society organisations. It is the first system of its kind in Asia.

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NORTHAMERICA

SVLK: IMPROVING FOREST GOVERNANCE AND PROMOTING TRADE OF LEGAL TIMBER PRODUCTS FROM INDONESIA

Eradicating Illegal Logging and illegal timber trading

1

5

44 Assuring timber legalityIncreasing dignity of

the nation

Promoting legal timber from

sustainable sources

SLVK function as

“passport” to enter global legal timber

market

3

Improving the govenance of forrest and forest-based industry

2

SVLK functions as “passport” to enter global legal timber market

Under the SVLK, Indonesian timber is deemed legal when its origin, production, processing, transport and trade are verified as meeting all applicable Indonesian laws and regulations. There are five legality standards under the SVLK, each with a set of principles, criteria, indicators and verifiers, all based on Indonesian laws, regulations and procedures:

Legality Standard 1. For concessions within production forest zones on state owned/company managed lands: natural production forests, (industrial) plantation forests, forest ecosystem restoration, forest management rightsLegality Standard 2. For community plantation forests and community forests within production forest zones on state-owned landsLegality Standard 3. For privately-owned/used forests/landLegality Standard 4. For timber use rights within non-forest zones on state owned lands

or from converted production forestLegality Standard 5. For primary and downstream forest-based industries and traders

The assessment of performance and the verification of legality is carried out by independent auditors from Conformity Assessment Bodies accredited by the National Accreditation Committee (KAN). The process applies standards of assessment/verification as developed by representatives of various forest stakeholders in Indonesia and stipulated by the Minister of Environment and Forestry.

SVLK AND GLOBAL TRADE OF TIMBER PRODUCTS

SVLK also responds to increasing global market demands for ‘green’ products, especially timber-based products harvested from sustainably-managed forests. Demand for such green products in importing

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NORTHAMERICA

2015USD 973M

2014USD 621.9M

ASIA

OCEANIAAFRICA

EUROPEANUNION

NON-EUEUROPE2015

USD 744.6M

2014USD 644M

2015USD 240M

2014USD 107M

2015USD 5.2B

2014USD 4.8B

2015USD 739M

2014USD 317M

2015USD 20.8M

2014USD 13M


countries in Europe, North America, and Australia are on the rise, signaling greater awareness among consumers to promote environmental causes. Indonesia is well-placed to lead in these markets because of SVLK.Indonesia became the first country in Asia to negotiate and ratify a FLEGT VPA Forest Law Enforcement, Governance and Trade – Voluntary Partnership Agreement) with the

EU, towards the issuance of a FLEGT license for all timber-based exports to EU. With this license Indonesia will dominate the EU market as the first country in the world to obtain such a license that provides fast track access to the EU market in all 28 member countries. Aside from the EU, Australia also recognizes SVLK as a timber legality assurance system for all timber-based imports from Indonesia.

Since its enactment, the use of V-legal documents has increased the export values to following regions:

Main MarketEuropean Union

Australia

Japan, Korea, China, Canada

ProgressThe FLEGT VPA (Forest Law Enforcement Governance and Trade – Voluntary Partnership Agreement) was signed on 30 September 2013 and came into force on 1 May 2014.

The Country Specific Guideline (CSG) Indonesia was signed on 16 October 2014.

In the negotiation process

source: SILK online, October 2015

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MINISTRY OF ENVIRONMENT AND FORESTRYREPUBLIC OF INDONESIA

MINISTRY OF ENVIRONMENT AND

FORESTRY

To coordinate the SVLK implementation, including to develop mechanisms and standards on exports and imports

To implement trainings in providing supervisions, to facilitate SVLK processes

To comply with Indonesia’s timber

legality assurance systemTo better understand the

VPA requirementsTo promote trade in

FLEGT-licensed timber

To conduct consultations and coordination on SVLK mechanisms, monitoring,

and public awareness

RELEVANTMINISTRIES

CIVIL SOCIETY LOCAL GOVERNMENTS(Forestry and Industry and Trade Offices, Governor, Head of Districts)

(Ministry of Trade, Ministry of Industry, KAN, Ministry of Foreign Affairs, Ministry of Economic Coordination, Ministry of Finance cq. Customs)

(CSOs, NGOs, Associations, Media)

PRIVATE SECTOR


Multistakeholder Forestry ProgrammeManggala Wanabhakti Building, Block VII, 6th Fl.Jl. Jend. Gatot Subroto, Jakarta 10270, INDONESIAP: +62 21 573 7094Dipo Business Center, 9th Fl., Unit BJl. Jend. Gatot Subroto Kav 50-52Jakarta 10260 INDONESIAP: +62 21 29866400-1 | F: +62 21 29866402E: [email protected] | W: www.mfp.or.id

MULTISTAKEHOLDER PARTICIPATION

Multistakeholder participation is critical to the success of SVLK. Cross government agencies both at national and local levels, the private sector, including auditing bodies and civil society actively engage in the implementation of SVLK.

SVLK is the only timber legality assurance system in the world that integrates the role of civil

society as independent monitors to ensure its credibility.

svlk: improving forest governance and promoting trade of legal timber products from indonesia

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