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2013/SOM1/EGILAT/014 Agenda Item: III.B.4.a

Implementation of Sistem Verifikasi Legalitas Kayu (SVLK) – Indonesia’s Timber Legality Assurance

System (TLAS)

Purpose: Information Submitted by: Indonesia

3rd Experts Group on Illegal Logging and Associated Trade Meeting

Jakarta, Indonesia29–31 January 2013

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MINISTRY OF FORESTRY THE REPUBLIC OF INDONESIA

IMPLEMENTATION OF SVLK (Indonesian TLAS) : A NEW ERA IN

INTERNATIONAL TRADE OF WOOD PRODUCTS

OUTLINE

1. Why Indonesia should develop SVLK?2. How credible is SVLK ?3. What SVLK could offer ?4. When SVLK is implemented ?5. Progress of SVLK 6. Next Presenters

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WHY INDONESIA NEED TO DEVELOP SVLK?

Commitment to combat illegal logging (complementary to law enforcement) and promote trade for legal timberTo sustain Indonesia forests to support sustainable economic development of the countryTo conserve uniquely mega-biodiversity and address climate change (REDD+)To support poverty eradicationTo Meet increasing demand for legal products from sustainable managed forests

ILLEGAL LOGGING AND

ILLEGAL TRADE

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ILLEGAL LOGGING, KALIMANTAN DOC. MARCH, 2003

TREND OF FORESTRY CRIME CASES

• Illegal Logging

• Encroachment

• Plants and Wildlife Smuggling

• Illegal Mining

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HOW CREDIBLE IS SVLK ?

Involve multistakeholders in the establishment and implementation

Complaint mechanism

Independent Monitoring

V-Legal documents flow electonically monitored

INSTITUTIONAL OF SVLK

• Accreditation body, independent• based on ISO 17011 (International

Acreditiation - PAC, IAF, APLAC, ILAC)KAN/NAC

•Independent forest monitoring (IFM)• 23-09-2010, JPIK (IFM Network) was

established consisting 29 NGOs, perform monitoring public service in forestry sector.

NGO/CSO

• Independent Timber Assessment/Verification Bodies.

• Accreditated by ISO 17021 & ISO/IEC Guide 65

LP-VI/A-VB

• On Farm & Off FarmBusiness Unit

• Regulator & facilitatorGovernment

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NATIONAL ACCREDITATION

BODY

Independent Monitoring (JPIK)

LPPHPL / LVLK V-LEGAL

DOCUMENT(FLEGT License)

SFM-CERTIFICATETL-CERTIFICATE

ACCREDITATION CERTIFICATE

MINISTRY OF FORESTRY (Regulator)

COMPLAINT

ACCREDITATION

AUDITAPPEAL

COMPLAINTAPPEAL

SVLK SCHEME

LIUTLIS

APPLYING

PUBLISHING

WHAT SVLK COULD OFFER ?

Forest governanceLegality assurance to timber products importer and buyers Continues supply and sustainable trade

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WHEN SVLK IS IMPLEMENTED ?

SVLK have been implmented since 1th January 2013Regulation of The Minister of Trade of The Republic of Indonesia ; Number 64/M-DAG/PER/10/2012 :Concerning Provisions on Export of Forestry Industry Products• For certain products as set out in Annex IA and IB, each export

must be accompanied by V-Legal Documents;• V-Legal Documents as proof of legality of wood products to be

exported;• V-Legal document is issued by the Timber Legality Verification Body

(LVLK) appointed by the Minister of Forestry.The implementation of V-Legal Document is divided into twophase:• The first phase is from January 1st, 2013, V-Legal Documents is required

for export of 26 HS (Annex IA), includes certain pulp and paper products;• The second phase starting from January 1st, 2014, V-Legal Documents is

required for export of 14 HS (Annex IB), including furniture.

No. CertificationPassed

(unit&ha)Failed

(unit&ha)On Process (unit&ha)

Total (unit&ha)

1. SFM 77(9.970.346)

7(443.746)

4(534.799)

88(10.948.891)

2. FOREST LEGALITY VERIFICATION

13(856.783)

3(143.475)

21(1.330.289)

37(2,330,547)

3. COMMUNITY FOREST

14(7.688)

- - 14(7.668)

4. INDUSTRY LEGALITY VERIFICATION

384 15 77 476

Progress of SVLK

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No Product Total industry/exporter

TL –certified industry/exporter

Percentage (%)

1 Woodworking 289 147 50.10

2. Panel 37 31 83.80

3. Paper 15 12 80.00

Woodworking and Panel Industry Certification (export destination to EU) as of December 2012 November

2012

PROGRESS OF PUBLISHING OF V-LEGAL DOCUMENTAS OF : JANUARY 28 , 2013 ; 08:00

TOTAL DOCUMENT ISSUED 4.454 (159/day)

COUNTRY OF DESTINATION 104

HS CODE 27

PORT OF LOADING 36

PORT OF DESTINATION 364

WEIGHT 726,685.419 KG

NUMBER OF INDEPENDENT VERIFICATION BODY

9/11

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NEXT PRESENTERS

1. Mr. Ganis Ramadhani - Sucofindo : Process of Legality Verification .

2. Mr. Budi Hermawan – Wood Panel Association (APKINDO): PT. Kayu Lapis Indonesia Readiness for Using V-legal.

3. Mr. Abu Meridian – Indonesia Independent Forestry Monitoring Network (JPIK) : “What do NGOs Think”

4. Ms. Mariana Lubis – Timber Legality Information Management: Timber Legality Information System.

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EXPECTION

1. STRONG COMMITMENT FROM PRODUCING AND CONSUMER COUNTRIES TO PROMOTE LEGAL TIMBER TRADE

2. SVLK HAVE BEEN IMPLEMENTED AND INDONESIA-EU FLEGT-VP IS SCHEDULED TO BE SIGNED IN APRIL 2013. WE INVITE OTHER IMPORTING COUNTRIES TO JOINT

3. THERE IS A CLEAR MASSAGE ABOUT THE DIFFERENCE BETWEEN MANDATORY AND VOLUNTARY SCHEMA