SVLK on

FOREST CONVERSION

Presented

at

Illegal Logging Stakeholder Meeting

25 – 26 June, Chatham House

Agus Sarsito

Ministry of Forestry and Environment

Republic of Indonesia

CONTENT

•SVLK (Indonesian TLAS)

•Conversion Mechanism

•SVLK on Conversion

•Challenges and Opportunities in SVLK Implementation

National

Accreditation

Body (KAN)

Independent

Monitoring (JPIK)

Management/

Business Unit

Independent

Certification Bodies

LIU (SILK)

Ministry of Forestry (Regulator)

Complaint

Accreditation

Audit Appeal

Complaint

Appeal

SVLK Scheme

Accreditation

Certificate

SFM/TL

Certificate

V-Legal Doc.

(FLEGT License)

Scope of SVLK (DG Production Forest Management Decree P.14/2014 jo. P.1/2015)

Auctioned

timber

State

Forests

Private

Forests

Export

Markets

Industry

Primary

Industry

Secondary

Products

Finished

Domestic

Market

Notes: 1. Auctioned timber should be segregated. 2. Timber Product from Auctioned Timber not eligible for export and only for domestic market but

not eligible for Government Procurement. (Presidential Decree on Green Procurement).

Imported

Timber

V-Legal

FIVE LEGALITY STANDARD (Annex 2)

1. Legality Standard 1: the standard for concessions within

state-owned production forest areas: Natural Forests, Plantation

Forest, Ecosystem Restoration, Forest Management Right (Hak

Pengelolaan); (Htn Alam, Htn Tanaman, Hres, Hak Pengelolaan –

Perhutani) KPH next

2. Legality Standard 2: the standard for community plantation forests

and community forests within state-owned production forest areas;

3. Legality Standard 3: the standard for privately-owned forests;

4. Legality Standard 4: the standard for timber utilisation rights within

non-forest zones or from convertible state-owned production forest

areas;

5. Legality Standard 5: the standard for primary and downstream wood

based industries and traders (besar & kecil).

FOREST FUNCTION – 2013

(128 million Ha.)

CONSERVATION 21.995.985 PRODUCTION 28.897.172

PROTECTED 29.917.582 CONVERTION 17.863.400

LIMITED PRODUTION 27.686675 NON FOREST 59.455.100

Conservation

Forest

17%

Protection

Forest

24%

Limited

Production Forest

22%

Production Forest

23%

Convertible

Production Forest

14%

Convertible Production Forests Allocated for

Non- Forestry Sector Development, 2009 - 2015

Production Forest Area Designated for Non-

Forestry Development

17.863.400

Up to 2009 4.670.930

2009 239.617 Ha

2010 8.613 Ha

2011 369.919 Ha

2012 538.914 Ha

2013 210.702 Ha

2014 573.892 Ha

2015 (Mei) 38.067 Ha

2009 - 2015 6.650.654

Balance 11.212.746

Process Toward Legal Timber License

from Forest Conversion

• District Government (Non-Forest Area)

• Ministry of Environment and Forestry (Forest Area)

Conver-sion

Permit

• District Government

• Provincial Government

• Ministry of Environment and Forestry

Timber Utiliza-

tion Permit

• Verifi-cation Body

Timber Ligality License

LICENSE FOR TIMBER UTILIZATION MAY

BE GRANTED AT AREA AS FOLLOWS:

• Permits Granted to Utilized Non-Forest Area (by

Head of District Government)

• Permits Granted to convert Production Forest

designated/allocated to non-forestry sectors

development (by Ministry of Forestry based on

District and Provincial Government

Recommendation)

• Permits granted for temporary used of forest area

(by Ministry of Forestry based on District and

Provincial Government Recommendation).

Requirement for Timber Utilization Permit

• Standing Stock Inventory Data

• Prepare :

1. Timber Harvesting Plan

2. Plan on Harvesting Blok of Timber Utilization

3. Provide Bank Guarantee (for Reforestation Fund and

Fees).

• Documented Timber Administration (from Felling

Site, Log Landing, Log Yard to Intermediate Log Yard)

• Obtain Necessary Timber Transportation Document

to transfer logs from Log Yard to Industry.

• Pay Fee, Reforestation Fund and Standing Stock

Value Compensation.

Timber Production From Timber Utilization Permits, 2012 -214

Year Permit Number

(unit)

Production

(m3)

2012 Na 1,208,531

2013 130 831,219

2014 43 138,458

Total 173 2,178,208

Number of V-Legal Document Issued, 1 Jan. ‘13 - 21 Jun. ’15 (09.00)

No. Uraian Unit 2013 2014

1 Jan - 8

Juni 2015 Total

1 Number of Shipment (V-Legal

Issued)

Doc. 78,270 94,419

87,541

260,230

2 Number of Export Country of

Destination

Country 155 167

186

194

3 Number of Export Country of

Destination within EU

Country 27 27

28

28

4 Number of Product Category (4

digit HS Code)

HS 40 39

41

44

5 Port of Loading in Indonesia Port 69 62

74

91

6 Number of Port in Country of

Destination

Port 1,109 1,269

1,643

2,216

7 Nett Volume 1000

Tonnes

8,009 9,502

6,659

24,171

8 Nilai US$

million

6,067 6,602

4,741

17,410

• 18 New Export Country of Destination in 2014 : Saint Lucia Island, Zimbabwe, Mongolia, Macedonia/The Former Yugoslav

Republic, Montenegro, Barbados, Wallis and Futuna, El Savador, Serbia, Belize, Aruba, Iceland, Suriname, Tonga, Turkey

and Caicos Islands, Monaco dan Afghanistan

• 21 New Export Country of Destination in 2015, yaitu : Belarus, Sierra Leone, Equatorial Guinea, Mauritania, American

Samoa, Bermuda, Botswana, Installations of International Waters, Republic of Moldova, Paraguay, Dominica, Rwanda,

Virgin Islands, Luxembourg, British Indian Ocean Territory, Gibraltar, Cayman Islands, Solomon Islands, Burkina Faso,

Christmas Island dan, Bhutan.

Export Value per Region (Januari 2013 – Mei 2015)

1

2

3

4

5

6

7

Asia USD 12,438,178,455

73.53 %

Amerika Utara US 1,625,515,023 9.61 %

Uni Eropa USD 1,686,004,193 9.97 %

Afrika USD 331,671,387

1.96 %

Europe USD 36,317,719

0.21 %

OCEANIA USD 741,591,254 4.38 %

Amerika Selatan USD 55,567,825 0.33 %

TOTAL : US $ 16,914,845,857 Source : SILK online, 1 Juni 2015

10 Top Indonesia’s Forest Products Export Country of Destination Januari 2013 – Mei 2015 (US$ Million)

NO NEGARA US$ Million %

1 CHINA 4,662.48 27.56

2 JAPAN 2,671.32 15.79

3 UNITED STATES OF AMERICA 1,532.47 9.06

4 REPUBLIC OF KOREA 1,164.91 6.89

5 AUSTRALIA 621.99 3.68

6 TAIWAN, REPUBLIC OF CHINA 566.92 3.35

7 SAUDI ARABIA 555.69 3.29

8 INDIA 429.65 2.54

9 MALAYSIA 380.12 2.25

10 UNITED KINGDOM 371.92 2.20

Sumber : SILK online, unduh tanggal 1 Juni 2015

Challenges and Opportunities in SVLK Implementation

•Challenges

1. SME need support to get SVLK Licenses

2. Resource needed for monitoring

•Opportunities

1. Government and others stakeholders’ commitment

to implement SVLK

2. Partner Countries support to SVLK Implementation

TERIMA KASIH