Exports of Indonesian Plywood to the North American Market under Indonesia s SVLK Legality Certification Program
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1 Case Studies in Forestry Reform and Market Developments Exports of Indonesian Plywood to the North American Market under Indonesia s SVLK Legality Certification Program by Gunawan Salim, APKINDO Board Members Presented at World of Wood Annual Convention, April 5-7, 2017 San Francisco, California
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3 SVLK (TLAS = Timber Legality Assurance System) AS A SHIFTING PARADIGM FROM COMBATING ILLEGAL LOGGING AND ASSOCIATED TRADE TO PROMOTING LEGAL TIMBER TRADE
4 Objectives of SVLK To combat illegal logging and illegal trade To ensure that Indonesia timber products are legal To improve Indonesia s forestry governance To support and accelerate the implementation of sustainable forest management
5 The Parties Involved in SVLK Goverment KAN/NAC 3 rd Party Certification Body Business Unit Management CSO (Civil Society Organisation) Regulator & facilitator National Accreditation Body Accreditation third party certification bodies Assessment/Verification business unit management Concessionaire Holders & Manufactures Independent Monitoring Monitoring the implementation of the SVLK
6 National Accreditation Body (KAN) Objection Independent Monitoring by CSO Accreditation Certificate Audit Appeal THIRD PARTY CERTIFICATION BODY Objection through SILK = License Information Unit SVLK Certificate Audit Appeal BUSINESS MANAGEMENT Appeal V-Legal Doc V-Legal Document Export 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
7 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
8 Bali FLEG Declaration Development of SVLK with multi stakeholders Implementaion of SVLK Certification Oct 22, 2012 All exporters must have SVLK Certificate Implementation of V-Legal Document Nov 15, 2016 Full Implemention of FLEGT-VPA Bilateral cooperation with USA, Japan,China, UK, Australia FLEGT-VPA negotiations Indonesia-EU Ratification : -EU 27 Feb -INA 13 March 30 September 2013, Signing FLEGT-VPA (milestone)
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11 Millions cbm 3.75 Percentage of plywood production by region % 6% % 40% Source: Indonesian Ministry of Environment & Forestry Sumatera Kalimantan Jawa East Indonesia
12 Billions Millions Volume, cbm Value, USD Note : volume is a convertion of weight (ton) based on assuming specific gravity Source : Indonesian Statistic
13 Export of Indonesian Plywood (HS 4412) Volume in 1,000 cbm 2,500 2,000 1,500 1, CHINA JAPAN USA REP. KOREA OTHERS 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
14 Export of Indonesian Plywood (HS 4412) Value in USD 1,000, CHINA JAPAN USA REP. KOREA OTHERS Source: Indonesian Ministry of Environment & Forestry
15 Volume, cbm 600, , , , , , Value, USD 1, , , , ,000 50, Source : Foreign Agricultural Service, United States Department of Agriculture
16 Millions cbm USA Import China Indonesia Russia Canada Ecuador Source : Foreign Agricultural Service, United States Department of Agriculture
17 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
18 if you want to buy or sell of legal plywood BUY FROM INDONESIA you will be able to sleep peacefully
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