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
SVLK (TLAS = Timber Legality Assurance System) AS A SHIFTING PARADIGM FROM COMBATING ILLEGAL LOGGING AND ASSOCIATED TRADE TO PROMOTING LEGAL TIMBER TRADE
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
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
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
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
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 2001 2003-2009 2009-2011 2012 2016 2002 2007 2013 2014 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)
Millions cbm 3.75 Percentage of plywood production by region 3.50 3.25 9% 6% 3.00 2011 2012 2013 2014 2015 2016 45% 40% Source: Indonesian Ministry of Environment & Forestry Sumatera Kalimantan Jawa East Indonesia
Billions Millions Volume, cbm 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Value, USD 2.50 2.00 1.50 1.00 0.50 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Note : volume is a convertion of weight (ton) based on assuming specific gravity Source : Indonesian Statistic
Export of Indonesian Plywood (HS 4412) Volume in 1,000 cbm 2,500 2,000 1,500 1,000 500-2013 2014 2015 2016 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
Export of Indonesian Plywood (HS 4412) Value in USD 1,000,000 900 800 700 600 500 400 300 200 100-2013 2014 2015 2016 CHINA JAPAN USA REP. KOREA OTHERS Source: Indonesian Ministry of Environment & Forestry
Volume, cbm 600,000 500,000 400,000 300,000 200,000 100,000-2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Value, USD 1,000 250,000 200,000 150,000 100,000 50,000-2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source : Foreign Agricultural Service, United States Department of Agriculture
Millions cbm 3.50 3.00 2.50 2.00 1.50 1.00 0.50 USA Import China Indonesia Russia Canada Ecuador 0.00 2012 2013 2014 2015 2016 Source : Foreign Agricultural Service, United States Department of Agriculture
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
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