ASSESSING COMPLIANCE OF FOREST TIMBER PRODUCT UTILIZATION AND TRADE PERMIT HOLDERS
2
CONTENT
SUMMARY
Summary
1
Introduction
2
Independent Monitoring
2
Noncompliance and Law Enforcement of Forest Product Utilization Permit Holders and Timber Industries in 8 Provinces
7
Gaps between Certification Body’s Assessment/ Verification Results and Monitoring Results
42
Recommendations
43
The main threat to the sustainability of Indonesia’s forests is forest area conversion leading to deforestation and forest degradation. One of the measures taken by the Government of Indonesia to improve forest governance is through the Timber Legality Assurance System (System Verifikasi Legalitas Kayu, SVLK). The SVLK is a mandatory system for all forestry unit managements stipulated in Regulation of Minister of Environment and Forestry No. P.30/Menlhk/Setjen/ PHPL.3/3/2016 that ensures the legality and sustainability of timber and timber product utilization, and ensuring they are sourced from legal raw materials. As of June 2018, more than 23 million ha of production forests and 4.322 timber product industries and traders have obtained the Sustainable Production Forest Management (S-PHPL) and Timber Legality (S-LK) certificates. Independent Monitors play a critical role ensuring SVLK is implemented in a credible and accountable manner. However, Independent Monitors still face a number of challenges in undertaking their roles; such as difficulties in accessing data and information, particularly timber distribution data, as well as gaps in reaching monitoring ‘space and scope’ and ensuring monitoring continuity. From October 2019 to June 2020, JPIK carried out a series of analysis on the supply chain of primary industry raw materials and field monitoring in Aceh, Riau, Bengkulu, South Sumatera, Banten, East Java, North Kalimantan, and West Kalimantan Provinces. In general, JPIK found that illegal logging practices are still happening in several regions. In addition, there are numerous suspected law enforcement violations by S-LK holders, as well as non-certified companies.
August 2020 © Independent Forest Monitoring Network/JPIK DISCLAIMER This report was produced with the support of FAO-EU FLEGT Programme. The Programme is funded by the Swedish International Cooperation Agency, the United Kingdom Department for International Development and the European Union. The views expressed herein can in no way be taken to reflect the official opinion of FAO, the Swedish International Cooperation Agency, the United Kingdom Department for International Development or the European Union.
1
On the upstream end, illegal logs without V-Legal logos are easily transported by land or water. There is suspected failure to pay PNBP (non-tax state revenue) by IPK (timber utilization) permit holders, by harvesting timber for palm oil plantation land clearing. There must be more revelations of suspected cooperation between illegal loggers and government officials to minimize state losses for loss of environmental (ecosystem) carrying capacity, forest resources, and protected wildlife habitats. In addition, conflicts between forest utilization permit holders and local/indigenous communities were often recorded in S-PHPL concessions. On the downstream end, S-LK certified forestry product exporters have been found using timber products from uncertified companies, and therefore their legality is questionable. Some individual permit holders do not mention
the timber species name in documents explaining the legality of forest products enable dirty practices of using CITES Appendix II-listed timber without special distribution permit and documents. Poor treatment of production residue and waste was also noted, when, in fact, this is linked to ecological sustainability and the lives of communities and workers around the industries. Occupational Health and Safety (OHS) requirements also have not been optimally implemented as regulated in SVLK assessment/verification standards. 1. Introduction Indonesia covers land and water area of forest area 125.921 million ha, with 120,6 million ha land of forest area and 5.321 million ha water area of forest area (MoEF 2018). Distribution of forested lands in forest areas, from largest to smallest, are Papua and West Papua, followed by Kalimantan, Sumatera, Sulawesi, Maluku and North Maluku, Java, Bali, and Nusa Tenggara (Table 1). From 2011 to 2018, forested areas in Indonesia decreased from 98,7 million ha to 93,52 million ha. This reduction of forested area is caused by forest function and designation changes, also known as forest conversion.1 Forest conversion is one of the factors behind deforestation and degradation, leading to
reduced forest cover. For this reason, deforestation and forest degradation are major threats to the sustainability of Indonesia’s forests.2 This is usually driven by land clearing permits for infrastructure development, plantation, mining, and forest product utilization. To protect the sustainability and continuity of forest management, especially for timber products and its derivatives, the Government of Indonesia established and developed the Indonesia Timber Legality Assurance System (SVLK) to improve forest governance. The objective of this system is to ensure all felled, transported, processed, and distributed (traded) timber is from legal and sustainable sources, and its management or utilization are in compliance
with applicable regulations/ policies. As of June 2018, there is more than 23 million ha of production forests, and 4.322 industries are certified under Sustainable Production Forest Management (PHPL) and Timber Legality Assurance (SILK) (MoEF 2018). 2. Independent Monitoring To ensure SVLK’s credibility, Independent Monitors are one of the elements with monitoring roles and function to oversee the entire SVLK implementation phases, from upstream to downstream. From October 2019 to June 2020, the Independent Forest Monitoring Network (JPIK) carried out monitoring and analysis on timber distribution in Aceh, Riau, Bengkulu, South Sumatera, Banten, East Java, North Kalimantan, and West
Table 1. Indonesia Forest Cover in 2018 Production Forest No.
Province
Conservation Area (Ha)
Protected Forest (Ha)
Limited Production Forest (Ha)
Permanent Production Forest (Ha)
Convertible Production Forest (Ha)
Total Land Area of Forest Area (Ha)
Total Land and Water Area of Forest Area (Ha)
1
Sumatera
5.362.813,73
5.616.777,65
2.835.355,99
7.370.808,62
1.731.046,11
22.830.535,10
22.916.802,10
2
Java, Bali, Nusa Tenggara
1.492.722,27
1.945.762,72
886.647,26
1.829.965,73
78.494,00
5.689.483,98
6.233.591,98
3
Kalimantan
5.169.825,00
7.031.608,00
10.621.683,45
10.794.833,32
3.104.452,88
36.508.915,65
36.722.401,65
4
Sulawesi
4.353.652,00
4.408.681,00
3.143.395,00
1.153.524,00
453.593,00
10.991.962,00
13.512.845,00
5
Maluku and N. Maluku
648.037,00
1.211.314,00
1.561.109,00
1.125.429,00
1.888.948,00
6.425.629,00
6.434.837,00
6
Papua and W. Papua
10.395.542,00
9.446.872,00
7.739.720,00
6.927.487,00
5.591.015,00
38.153.269,00
40.100.636,00
27.422.592,00
29.661.015,37
26.787.910,70
29.202.047,67
12.847.548,99 120.599.794,73
125.921.113,73
Indonesia
Source: MoEF’s 2018 Statistics and JPIK’s 2019 analysis
2
Kalimantan Provinces. Field monitoring was carried out in a number of concessions and forest management units (Figure 1), including Business Permit for Forest Timber Utilization in Natural Forest (IUPHHK-HA), Business Permit for Timber Utilization in Plantation Forest (IUPHHK-HT), Business Permit for Timber Forest Product Primary Industries (IUIPHHK) and secondary industries, Timber Utilization Permit (IPK), Non-Producing Exporter, and monitoring in Lalan Mangsang Mendis Production Forest Management Unit (KPHP), Protected Forest and Rimbang Baling Wildlife Sanctuary. According to the Industrial Raw Material Supply Plan Information System (SIRPBBI)3 of the Indonesian
Ministry of Environment and Forestry (MoEF), in 2019 there were 503 primary
industries in eight provinces that are registered and submit routine reports online.
Figure 1. Timber Supply Chain Based on JPIK’s Monitoring in 8 Provinces
Table 2. Primary Industry Raw Material Supply and Actual Utilization in 8 Provinces in 2019
Province
Annual No. of Capacity Industries 3 (m )
> 6.000
Aceh
Riau South Sumatera Bengkulu
0
Logging Concessions (M³)
0,00
Timber Plantations (M³)
StateOwned Forestry Company (M³)
0,00
0,00
Land Clearing for Timber Plantation (M³) 0,00
Other Legal Plantation Permits Timber or Timber (M³) Utilization Permit (M³) 0,00
0,00
Community Forest (M³)
Log Trader and Legal Origins (M³)
0,00
0,00
Other Timber Utilization Permits (M³) 0,00
Log Import (M³)
0,00
Total (M³)
0,00
≤ 6.000
13
0,00
0,00
0,00
1.631,88
0,00
0,00
10.318,73
0,00
0,00
0,00
11.963,61
> 6.000
12
41.277,49
22.311.452,00
0,00
8.389,06
4.726,86
0,00
794.029,87
0,00
3.249,76
554.073,00
23.717.210,04
≤ 6.000
12
0,00
0,00
0,00
0,00
0,00
0,00
23.025,99
0,00
0,00
0,00
23.037,99
> 6.000
11
4.522,87
12.004.989,67
0,00
38.575,48
0,00
0,00
1.230.244,90
97.092,37
0,00
81.926,31
13.457.362,60
≤ 6.000
25
0,00
0,00
0,00
0,00
0,00
0,00
31.067,31
0,00
0,00
0,00
31.092,31
> 6.000
1
1.308,06
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
1.309,06
≤ 6.000
5
3.466,87
0,00
0,00
0,00
0,00
0,00
19.149,59
582,67
0,00
0,00
23.204,13
> 6.000
121
666.459,84
18,26
130.638,37
41.461,83
42.976,14
50.961,32
2.356.637,90
264.739,30
297.831,36
1.686,26
3.853.531,58
≤ 6.000
255
13.868,32
0,00
52.948,48
332,81
3.835,66
1.731,70
297.857,04
156.031,90
41.128,30
0,00
567.989,21
> 6.000
4
0,00
0,00
1.237,52
0,00
0,00
0,00
81.500,00
0,00
0,00
958,71
83.700,23
≤ 6.000
20
0,00
0,00
7.148,83
0,00
0,00
0,00
15.986,36
0,00
0,00
0,00
23.155,19
West Kalimantan
> 6.000
9
464.834,63
0,00
0,00
0,00
7.553,10
0,00
16.642,51
0,00
55.036,75
0,00
544.075,99
≤ 6.000
7
161,02
0,00
0,00
2.575,92
425,38
0,00
2.637,93
0,00
0,00
0,00
5.807,25
North Kalimantan
> 6.000
3
376.829,02
3.922,97
0,00
9.618,91
2.933,06
0,00
0,00
0,00
0,00
82,36
393.389,32
≤ 6.000
5
187,92
101,24
0,00
5.106,39
2.108,65
0,00
0,00
0,00
0,00
0,00
7.509,20
503 1.572.916,04 34.320.484,14 191.973,20 107.692,28
64.558,85
52.693,02 4.879.098,13
518.446,24
397.246,17 638.726,64
42.744.337,71
East Java
Banten
Total
Source: SIRPBBI, MoEF, 2019, and JPIK’s Analysis, 2019
3
These figures do not include all primary industries in each province. Primary industries with annual capacity under 6.000 m3 still submit reports manually to local Forestry Agencies; hence data from these industries’ are not fully documented in this information portal (Table 2). Reporting to SIRPBBI is a prerequisite for primary processing industries based on its capacities. The reporting includes all timber originating from state forests and private forests, while reporting to the Forest Product Administration Information System (SIPUHH)4 is a prerequisite for timber from state forests before it is transported and processed in industries. This allows for a gap between the volume of timber harvested and the amount of national timber production because the reporting of the two systems is not yet integrated and does not cover all stages of the timber supply chain. Management unit who fail to report to SIRPBBI and SIPUHH will receive sanctions as stated in Regulation of Minister of Environment and Forestry No. P.1/MENLHK/ SETJEN/KUM.1/1/2019 about business permits for primary forest products industry and P.66 and P.67/2019 about the administration of timber forest products from natural forest and timber plantation. However, there are primary industries that are still failing to meet these requirements, and SIPUHH not locked yet automatically the uncertified logs. Moreover, information on small-scale primary and secondary industries which may be potentially unlicensed, as well as logs
Figure 2. Timber Supply Chain in Primary Industry with Capacity >6000 m3 per year
Figure 3. Timber Supply Chain in Primary Industry with Capacity ≤6000 m3 per year
from private (community) forests that are not included in SIPUHH (Figure 4) leads to a discrepancy in the volume of traded logs. These conditions make it difficult to obtain definite and actual amount/ volume of domestic timber production and processing in SIRPBBI and/or SIPUHH, as well as the potential the data in both of system has no
accuracy and not reconciled. These conditions affecting to uncontrolled timber supply chains from upstream to downstream. Information on logs from IUPHHK-HA, IUPHHK-HT (Figures 5 and 6) and the State-Owned Forestry Enterprise Perhutani are reported to SIPUHH and should be Sustainable
4
Source: SIPUHH, MoEF 20205
Figure 4. Log production in 8 provinces in 2019
Source: MoEF’s 2018 Statistics and JPIK’s 2019 analysis
Figure 5. Number and area of IUPHHK-HA Permits
5
Source: MoEF’s 2018 Statistics and JPIK’s 2019 analysis
Figure 6. Number and area of IUPHHK-HT Permits
Source: MoEF’s 2018 Statistics and JPIK’s 2019 analysis
Production Forest Management (S-PHPL), and Timber Legality (S-LK) certified. JPIK however still has not obtained precise data and information on timber production and certificates for 15.307 ha of Business Permit for Forest Timber Utilization in Community Plantation Forest (IUPHHK-HTR) in S. Sumatera, W. Kalimantan, and N. Kalimantan, as well as for 76.813 ha of Business Permit for Timber Utilization in Community Forest (IUPHHK-HKm) in six monitoring sites (Figures 7 and 8), JPIK has not received certain information and data regarding the number of permit holders and timber production from IUPHHKHTR and IUPHHK-HKm, and certificate ownership by permit holders. Other data and information that is
Figure 7. Number and area of IUPHHK-HTR Permits
6
Sumber: Statistik KLHK, 2018 dan Analisis JPIK, 2019
Figure 8. Number and area of IUPHHK-HKm Permits
difficult for JPIK to access are data on the production and distribution of wood from natural forests, including IPK from land clearing for oil palm, mining, and other activities. As one of the steps toward sustainable forest management, SVLK must be strengthened through raw material traceability in the entire timber supply chain. All of the tradedtimber and timber products must be traceable to its origins through an information system that is able to show data and information of the timber distribution from upstream to downstream.6 The information system can be optimally utilized through strengthening, developing, and integrating some 7
existing information systems. Therefore Independent Monitors and the public can easily access and obtain periodic and the most up-todate data and information on timber production and trade developments. 3. Noncompliance and Law Enforcement of Forest Product Utilization Permit Holders and Timber Industries in 8 Provinces 3.1 Riau Province Riau Province is geographically, geoeconomically, and politically located in a strategic line, in the ASEAN regional trade route, both currently and in the future. Riau Province extends
from the Bukit Barisan Mountain Range to the Strait of Malaka, covering 8.915.016 ha,7 including 5.392.336 ha forest area (Table 3). In 2000, 312 forestry industries were operating in Riau comprising of plywood industry (10 units), sawmills (270 units), moulding (27 units), chip mills (3 units), and pulp and paper industry (2 units).8 In 2005, the Riau Province Forestry Agency recorded a rise in the number and capacity of forestry industries in Riau to 576 units with raw material demand up to 22,7 million m3/ year (Final Report for Riau Province 2019; Peat
Table 3. Forest Area in Riau Province
District/ Municipality
Protected Forest
Sanctuary Reserve & Nature Conservation Areas
Limited Production Forest
Permanent Production Forest
Convertible Production Forest
Total Forest Area
2019
2019
2019
2019
2019
2019
53.182 79.567 152.316 64.183 6.310 114.980 120.264 110.471 150.758 150.174 579 12.218 1.015.003
87.181 119.664 228.709 612.069 326.679 163.160 54.939 330.848 237.546 42.962 1.279 130.415 2.335.450
76.055 170.106 288.503 66.060 13.483 132.772 136.061 65.779 149.595 59.600 1.618 20.376 1.180.008
310.073 542.603 709.220 876.947 420.589 571.600 383.189 589.883 556.916 260.537 4.203 166.576 5.392.336
Kuantan Singingi Indragiri Hulu Indragiri Hilir Pelalawan Siak Kampar Rokan Hulu Bengkalis Rokan Hilir Meranti Islands Pekanbaru Dumai Riau Province
42.038 20.327 20.005 9.284 79 53.657 70.579 31 11.569 2.503 230.072
51.616 152.939 19.687 125.351 74.038 107.031 1.346 82.755 7.448 5.299 727 3.568 631.805
Source: Statistics Indonesia, 2019
Ecosystem Protection and Management Plan Model Development, 2016). However, as of December 2019, only 24 primary timber processing industries are
listed and submit routine online reports to SIRPBBI of their raw material plan and actual use.9 The booming forestry industry in Riau Province
Figure 9. Illegally logged timber in Tilan River, Tanjung Belit Village,Bukit Rimbang Baling (November 2019)
is one of the driving factors of natural forest degradation and deforestation beside forest fire. Forest Watch Indonesia’s (FWI) analysis shows that Riau Province suffered the greatest forest loss of 620.000 ha in 20092013. During this same period, the government issued a moratorium on new permits to prevent forest degradation and deforestation.10 To ensure the legality of distributed timbers, as well as establish sustainable forest management, the Minister of Environment and Forestry issued Regulation No. 30 of 2016, along with implementing regulations. These regulations stipulate that the entire forestry industry, from primary to secondary industries, must have SVLK and use raw materials from 8
legal sources, and must obtain Timber Legality Certificate (S-LK) and Sustainable Production Forest Management Certificate (S-PHPL), also supplemented with the Self Declaration of Conformity (DKP) for timber raw materials from private (community) forests. For an assessment of SVLK implementation and timber administration in Riau Province, JPIK carried out a series of monitoring works in Bukit Rimbang Bukit Baling Wildlife Sanctuary and the timber industry in Tratak Buluh Subdistrict, Kampar District.
Figure 10. Rafts of illegal logs from the sanctuary drifting in Subayang River (Novermber 2019)
3.1.1 Illegal Logging in Bukit Rimbang Bukit Baling Wildlife Sanctuary in Kampar District, Riau Province Bukit Rimbang Bukit Baling Wildlife Sanctuary (also referred to as Rimbang Baling) is a primary forest in Kampar District, Riau Province. This sanctuary plays a critical ecosystem function and has high levels of biodiversity, and is home to many vegetation species. Rimbang Baling was designated as a Wildlife Sanctuary11 by the local government through Riau Governor Decision No. Kpts.149/V/1982 dated 21 June 1982 with an area of 136.000 ha. The sanctuary’s current condition is alarming due to illegal logging involving local actors from surrounding areas. These illegal loggers have a well-organized network and are strongly 9
Figure 11. Truck in Gema Port carrying illegal logs from Rimbang Baling (November 2019)
Figure 12. Log pile in a temporary log yard in Gema Village (November 2019)
suspected to be backed up by forestry and security officials.12
crimes.
Illegal logging crimes spanning more than a decade were compiled from community information and news media. In the past three years, perpetrators were arrested, including in December 2017 in Muara Lembu Village. In 2018, two other illegal loggers were arrested in Tuah Indrapura and Kuantan Singingi by Kuntu Darussalam Villagers and were then detained by the police. However, illegal logging continues without a deterrent effect. Though a number of cases ended in prison, law enforcement has not been able to target key actors and timber financiers known as cukong. In fact on July 2019,13 the police were still arresting perpetrators of these
In November and December 2019, JPIK Riau Province received information and complaints from communities around Rimbang Baling of illegal logging practices in the sanctuary although security personnel often monitor the area. Community members have reported observing security officials’ involvement in backing up the illegal logging activities which allow stolen timber to be transported out of the sanctuary easily.
Field Monitoring
To follow up on the information and community complaint, JPIK Riau Province carried out monitoring in Pangkalan Serai and Aur Kuning Villages in Kampar Kiri Hulu Sub-
district, Kampar District. They found logs tied together as rafts drifted off in Tilan and Subayang Rivers. Illegal loggers target these villages because they are passed by streamlets that flow directly into the Subayang Watershed, enabling the timber transportation easily. The logs were then transported and shipped to a number of industries in Kampar District. According to interviews with local communities, the illegal timber is traded to Jambi and North Sumatera Province. This finding is supported by the fact that the Riau Province Police arrested two illegal loggers from North Sumatera in May 2020.14 The most wanted timber is Meranti (Shorea spp.). Community figures and local communities stated 10
Another unloading activity in an industry in Simpang Kambing (coordinate N 0°23’45.42” E 101°25’47.60”)
“The extraction of timber out of Rimbang Baling still continues as of 6 August 2020”
Log being unloaded in an industry in Simpang Kambing (coordinate N 0°23’31.57” E 101°25’23.88”)
Log being unloaded in an industry in Lubuk Siam (coordinate N 0°23’29.79” E 101°26’1.46”)
Another unloading activity in an industry in Lubuk Siam (coordinate N 0°23’6.49” E 101°26’50.90”)
Figure 13. Four trucks unloading logs in several industries in Simpang Kambing and Lubuk Siam (August 2020)
that illegal loggers are local villagers organized and employed by cukong from outside the area. Field operators and timber cukong work together with the cukongs providing capital for the operator’s family and all the basic needs for the operators during “mandah” or working in the forest. After several days conducting monitoring in Pangkalan Serai and Aur Kuning Villages, the JPIK 11
Riau investigation team returned to Pekanbaru. The team arrived in Gema Port before evening. Monitoring was also undertaken in a temporary log yard in Gema Village, Kampar Kiri Hulu Sub-district, Kampar District. The team found three trucks without plate numbers parked in Gema Port loaded with Meranti, Mentangur (Calophyllum spp.), and Medang (Litsea spp.) logs. Logs are usually transported
at 3 a.m. in Colt diesel trucks and covered with a tarp. The logs are taken to industries in Teratak Buluh in Siak Hulu Subdistrict, Kampar District. No V-Legal logos were found on the logs. The data gathered indicate that industries located in Teratak Buluh are CV Alam Riau Bertuah, Fadila Ilham Fajri and Karminto Community Timber Processing Industries (IPKR) that are S-LK certified.15
The extraction of timber out of Rimbang Baling continues as of 6 August 2020. This can be seen in Figure 13; when JPIK Riau team did a follow-up, there were trucks loaded with logs entering Simpang Kambing (in Teratak Buluh) in Lubuk Siam. It is difficult to obtain the name of the industry receiving logs from Rimbang Baling as no name was written in front of the warehouse. Locals and workers around the sites only know some of the names of the industries’ owners16 but are unwilling to share this information. When the monitoring team approached the industries, they were asked to leave the site. Measuring the Effectiveness of Report Handling and Law Enforcement On January 2020, the National JPIK Secretariat submitted a report to the MoEF’s DirectorateGeneral (DG) of Law Enforcement through Letter No. 01/NAS/ JPIK/I/20. The DG responded the letter by informing that the report has been submitted to the Riau Province Law Enforcement Agency for follow up. On May 2020, the Riau Provincial Police carried out an operation and detained a truck carrying 1.477 sawn timber or more than 30 m3 illegally logged natural forest timber from Rimbang Baling Wildlife Sanctuary.17 The Riau Police found
Figure 14. Suspected distribution of illegal timber from Rimbang Baling falsified Certificate of Forest Product Legality (SKSHH) stating that the logs belong to CV Wana Jaya located in Bulian Sub-district, Batang Hari District in Jambi.18 However no proof that the company has SVLK certificate showing CV Wana Jaya’s legality. Since Presidential Instruction No. 4 of 2005 was issued on Combatting Illegal Logging, many operations have been carried out. For example, in Riau Province, a joint team operation was led by the Riau Governor and on-the-ground the coordination was led by the Riau Province Police Chief.19 However, illegal logging continues even into mid-2020, although
Indonesia is currently facing the Covid-19 pandemic.20 The arrests made by law enforcement officers so far have been limited to field operators, while the timber cukongs organizing these illegal loggings remain untouched. These conditions are made worse by ineffective government monitoring and control; therefore, the actors involved and their networks are free to ‘play’ and carry out their work on the ground. A multi-door law enforcement effort to catch forest and environmental criminals must be strengthened through strict penalties that have deterrent effects, to prevent future 12
Figure 15. Timber Supply Chain of CV Alam Bertuah21
recurrence of these cases. 3.1.2 Monitoring in CV Alam Riau Bertuah in Kampar District, Riau Province CV Alam Riau Bertuah (CV ARB) is a timber processing industry with IUIPHHK permit and Industrial Business Permit (IUI) located in Kampar District, Riau Province. This industry has Timber Legality Certificate S-LK from the Timber Legality Verification Agency (LVLK) Sucofindo from 31 January 2013 and valid until December 2022. One of CV ARB’s raw material sources is
from Community Forests in Pelalawan, Kuantan Singingi, and Kampar Districts in Riau Province (Figure 15). Field Monitoring While tracking timber from Rimbang Baling, the JPIK investigation team followed a truck carrying logs from Gema Village. The truck unloaded the logs in Sukakarya Road (Simpang Kambing) in Teratak Buluh Village, Siak Hulu Sub-district, Kampar District. Many sawmills operate in this area, including CV ARB. The investigation team saw several parked
trucks here. JPIK Riau Province requested confirmation on the presence of the trucks from a local villager who lives nearby the industry.22 Some of the trucks are used to transport logs from Gema Village; therefore, it is strongly suspected that the logs were illegally logged from Rimbang Baling. However, at the time of monitoring in the field, there was no transportation of timber from Gema Village to CV ARB. There are some other suspected timber industries beside CV ARB, such as the IPKR Fadila Ilham Fajri and IPKR Karminto which have S-LK certificate, as well as other unknown industries without name signs boards or clear legality status. The industries are located close to one another and are strongly suspected to be interconnected. JPIK found log piles in the industries, dominated by Meranti species. Aerial monitoring recorded four trucks unloading logs in several industry sites. The timber species found in those industries are Meranti (Shorea spp.) and Mahang (Macaranga spp.). The aerial monitoring also revealed that waste from the timber processing was dumped directly into Kampar River, and a number of these industries were found to burn their timber waste.
Figure 16. CV ARB’s log warehouse (November 2019)
Monitoring Follow-Up To follow up these
13
Figure 17. Timber industries in Simpang Kambing (JPIK’s 2019 analysis)
investigation findings, the National JPIK Secretariat submitted a complaint report to PT Sucofindo International Certification as CV ARB’s S-LK issuer through letter No. 02/NAS/ JPIK/I/2020 dated 14 January 2020. Based on this report, PT Sucofindo conducted a special audit on 29-31 January 2020 to verify CV ARB’s alleged use of illegal timber from Rimbang Baling. PT Sucofindo’s special audit did not find any non-compliance to the assessment criteria as stipulated in Annex 2.5 of Regulation of Director General of Sustainable Management of Production Forest No.
P.14/PHPL/SET/4/2016. For this case, JPIK will conduct a follow-up investigation to find some new facts to prove its suspicion that CV ARB is processing illegal timber from Rimbang Baling. 3.2 Aceh Province As stated in the Ministry of Forestry’s Decree No. 103/MenLHKII/2015, amending the Ministry of Forestry’s Decree No. SK.865/ MENHUT-II/2014), forest and aquatic area conservation covers ±3.558.561,12 ha. The Aceh government issued a logging moratorium through Governor Instruction No. 5 of 2007, in which
moratorium is defined as the temporary halt of all logging activities in forests in Aceh; therefore, all activities of IUPHHK-HA and IUPHHK-HT concession holders, as well as other businesses and activities linked to forest logging causing degradation and deforestation were to be stopped. This moratorium is part of Aceh’s government’s long-term plan to build the foundation for sustainable and equitable forest management.23 The Aceh Government, through its Forestry Agency, has carried a series of activities referred to as Triple R: Redesign, Reforestation, 14
and Reduction. Redesign is the step for restructuring Aceh’s forest, starting from compiling an inventory, followed by organizing forest functions for an ecologically balanced provincial development. Reforestation is part of a long-term plan for forest management in Aceh which must be started now. The third R is Reduction or reducing the rate of forest degradation to support the implementation of sustainable forest management. To understand and evaluate the development of forest management in Aceh, JPIK Aceh Province carried out a series of monitoring work in the province. Monitoring sites were selected based on stakeholders’ recommendations and inputs as well as reports on illegal logging occurring in forest areas, where it was suspected that the logs were distributed to sawmills. Field monitoring was conducted in the industrial forest PT Rencong Pulp and Paper Industry and the nonproducing exporter CV Bidika Perkasa. 3.2.1 Monitoring the Performance of Industrial Forest: PT Rencong Pulp and Paper Industry PT Rencong Pulp and Paper Industry (PT RPPI) holds an IUPHHKHT for 10.384 ha, as stipulated in Decree of Aceh Governor No. 522.51/569/2011, amended by Decree 15
No. 522.51/441/2012. This permit applies for 60 years and may be renewed once for a further 35 years. PT RPPI’s concession spreads over five subdistricts: Nisam Antara, Geuredong Pase, Meurah Mulia, Sawang, and Paya Bakong Subdistricts in North Aceh District. In 2016, the Coalition of People Concerned for Aceh’s Forests (KPHA) comprising of local communities, natureloving students, and civil society organizations, urged the Aceh Government to revoke PT RPPI’s business permit.24 This was based on multistakeholder concerns about a potential water crisis for 264.920 people who depend on the Krueng Mane and Krueng Pase Watersheds for a water source. PTRPPI’s concession is located in the upstream area of both watersheds, which also provide water for 13 out of 27 sub-districts in North Aceh. In addition, both watersheds provide irrigation for over 17.288 ha rice farms, 8.325 ha in Krueng Pase Watershed and 8.963 ha in Krueng Mane Watershed. In addition, referring to the North Aceh District Spatial Plan, PT RPPI’s concession is classified as medium and high disaster risk areas.25 Upstream forest clearing in PT RPPI’s concession led to flooding and landslides in December 2019 in North Aceh District, impacting communities in several
areas of the district.26 Monitoring Findings JPIK Aceh Province found massive forest clearing (PWH) but did not find SVLK certificate assessment/verification documents as evidence of the fulfilment of several forest product utilization requirements in the Timber Legality Information System (SILK) portal.27 This is in line with Auriga’s report that the Aceh Government recognizes stated legality of PT RPPI’s industrial forest permit; however, it is not listed in the national timber administration system.28 After researching SIRPBBI 2019, it is found that PT RPPI supplied 254,03 m3 logs from land preparation clearing to PT Sinergi Tangguh Alam Raya in Aceh Province. It is strongly suspected that the timber produced and sold by PT RPPI IUPHHKHA is of doubtful legality due to no SVLK certificate. According to one RPPI operational manager on 31 July 2019, the company had paid its Forest Resource Provision (PSDH) and Reforestation Funds (DR) for the 1.700 m3 logs cut during land clearing.29 From the 1.700 m3 timber, there are 1.445,97 m3 without clear distribution. Traceability of compatibility between logging activities and the Annual Work Plan (RKT) is yet to be verified. JPIK Aceh Province still cannot access the RKT document. Despite
Figure 18. Vegetation after forest clearing in PT RPPI (December 2019)
being requested online through the Aceh Province Environment and Forestry Agency’s website, there has been no response. JPIK Aceh also found that the permits were issued to PT RPPI by the incorrect authorities. As stipulated in Government Regulation No. 6 of 2007 on Forest Governance and Forest Management Plan Development as well as Forest Utilization Government Regulation No. 3 of 2007 on Amended of Government Regulation No. 6 of 2007 and Regulation of Minister of Environment and Forestry No. P.28/ MENLHK/SETJEN/ KUM.1/7/2018, the permit should be issued by Minister. Further, interviews with the Geureudong Pasee Sub-district community
who live around PT RPPI showed that tenurial conflicts are still taking place between community members and permit holder. These conflicts are due to unclear concession boundaries. Local communities around the concession fear losing land, managed area disruption, and wildlife habitat loss because wildlife habitats are generally located outside of PT RPPI concession’s Wildlife Protection Area. From the above explanation, three findings may be concluded from the investigation: PT RPPI’s concession overlaps with community land which causes tenurial conflict; PT RPPI’s permit was issued by improper authorities; and, PT RPPI’s presence threatens water supply and protected wildlife.
3.2.2 Findings from SVLK Implementation Monitoring for Nonproducing Exporter, CV Bidika Perkasa CV Bidika Perkasa is a management unit having a non-producing export permit in Aceh province, obtained SVLK certificate from PT Sucofindo. Out of the three principles, five criteria, seven indicators and 22 verifiers in the assessment standard, there were 14 verifiers that conformed to the assessment norms, eight non-applicable verifiers that were not verified, and no verifiers deemed non-compliant with assessment/verification norms. The audit summary stated that one of the company’s timber suppliers is a company with Secondary Industrial Business Permit (secondary 16
Figure 19. Signboard at the site claimed to be CV Bidika Perkasa warehouse (December 2019) IUI), in which the legality status of this industry’s raw material should be verified. JPIK Aceh conducted an investigation by visiting the management unit based on the addresses listed in the CV Bidika Perkasa’s audit summary. The team checked the warehouse in the morning, afternoon and evening, and gathered information from local communities living around CV Bidika Perkasa. They also confirmed and clarified the information and facts collected on-site with the Forest Management Agency’s Technical Implementation Unit 17
(UPTD KPH) III Aceh under the coordination with the Aceh Environmental and Forestry Agency. JPIK Aceh’s monitoring found the address written in the audit summary is different from the management unit’s actual address, which the on-site signboard is not written “CV Bidika Perkasa”, but “PT Pinang Nusantara Abadi”. From interviews with the local community, the company does not conduct any activities related to forestry product business operation; instead, it is used for swallow nest farming. Previously the site was used
as a warehouse for agriculture fertilizers. During the monitoring, the warehouse gate remained locked and was never open, and no activities took place. Monitoring Follow-up JPIK Aceh followed up their findings by asking for confirmation from the local village head on CV Bidika Perkasa’s presence and activities. JPIK Aceh also sent a letter to the Aceh Province Environment and Forestry Agency to request data and information on the company’s environmental permit and Environmental Management Statement, as well to
PT Sucofindo through Letter No. 01/FP-ACEH/ JPIK/I/2020 dated 22 January 2020 to check the company profile, industrial product supplier list for JuneDecember 2019, export recap, copies of the supplier cooperation agreement, and Self Declaration of Conformity (DKP) from supplier to CV Bidika Perkasa.
As confirmed by the company via phone, the warehouse rent ended in December 2019, and the company is currently searching for a new warehouse. A copy of the Self Declaration of Conformity (DKP) from product supplier to CV Bidika Perkasa for JuneDecember 2019 is not available because there is no product shipment from the supplier.
PT Sucofindo responded JPIK Aceh’s request through Letter No. 0967/ SERCO-II/VLK/2020 explaining that CV Bidika Perkasa has not applied for V-Legal document because the industry does not export, and therefore there is no export recap and industrial supplier list for June-December 2019 up to today. However, a copy of cooperation document No. 021/SPKKS/BDKMDA/III/2019 between CV Bidika Perkasa with supplier shows that the supplier is UD Makmur Djaya Abadi based in Birem Beyun Village in East Aceh. The agreement applies for supplying Four sides planed timber (S4S) for two years, effectively from 18 March 2019 to 18 March 2021. No certification document was found for UD Makmur Djaya Abadi.
From the monitoring results and follow-up, JPIK Aceh province notices there is a weakness in government and PT Sucofindo’s monitoring. For this reason, further investigation must be done by both parties to ensure full SVLK compliance. 3.3 Bengkulu Province Bengkulu Province’s forest covers 920.964 ha, comprising of conservation forest (451.747,10 ha), protected forest (252.042 ha), and production forest (217.175 ha) (Table 4), as stated in Decree of Minister of Forestry No. 420/Kpts-II/99. About 700.000 ha of the total forest area
in the province is in critical condition, which is distributed in nine districts and municipalities in Bengkulu, including Bengkulu City. These critical forests in Bengkulu comprise of protected forest, nature reserve, wildlife sanctuary, national park, and game park.30 Forest degradation in Bengkulu is caused by illegal logging, forest encroachment by irresponsible companies and communities in protected forests, nature reserves, such as those taking place in MukoMuko, North Bengkulu, South Bengkulu, Rejang Lebong, Seluma, and Lebong Districts. WALHI Bengkulu received a report from the community that there are illegal logging indications carried out by CV Marantika in an oil palm Permit site. The permit holder is PT Citra Sawit Hijau Subur, and the site is located in Manau IX Village, Padang Guci Hulu Sub-district, Kaur District, with estimated timber volume is 400 m3. To follow up this report, WALHI Bengkulu conducted monitoring to
Table 4. Forest areas in Bengkulu Province
Forest Area (Ha) As confirmed by District/ No. Conservation Protected Production certification body, Municipality Forest Forest Forest PT Sucofindo, the 1 North Bengkulu 226.436,06 60.856,00 150.592,56 information discrepancy between the address 2 South Bengkulu 70.189,42 138.588,00 66.582,44 listed in the audit 3 Rejang Lebong 153.577,32 52.598,00 0 summary and facts in the 4 Bengkulu City 1.544,30 0 0 field, CV Bidika Perkasa Total 451.747,10 451.747,10 252.042,00 in fact no longer rented a warehouse in the area. Source: Bengkulu Province Forestry Agency, 2013
Sub-total 437.884,62 275.359,86 206.175,32 1.544,30 217.175,00
18
collect evidence of the illegal logging. 3.3.1 Indications of Illegal Logging Under the Guise of Timber Utilization Permit for Oil Palm Plantation Clearing in Kaur District, Bengkulu Province
Figure 20. CV Marantika’s IPK site in PT Citra Sawit Hijau Subur’s Location Permit (December 2019)
Figure 21. Timber logged by CV Marantika (December 2019)
Figure 22. CV Marantika’s logged timber, with diameters up to 1 m (December 2019)
19
CV Marantika obtained an IPK31 from the Bengkulu Province Investment and Integrated One-Stop-Service Agency. This Permit No. 503/01.1040/08/ DPMPTSP-P.1/2019 dated 26 September 2019 concerning Permit Issuance in PT Citra Sawit Hijau Subur in Kaur District for 2.406 ha and target timber volume 4.408,77 m3 with the production of 1.226 logs.32 Referring to CV Marantika’s 2015 IPK documents, PT Citra Sawit Hijau Subur is still on process to get an environmental license, then Bengkulu Province Environment and Forestry Agency issued an IPK approval to CV Marantika on 23 July 2019. This was followed up by the agency’s technical assessment of the timber utilization request on 30 August 2019. PT Citra Sawit Hijau Subur is a subsidiary of Ciputra Group’s oil palm plantation.33 Based on its 2015 Environmental Impact Analysis document (AMDAL), PT Citra Sawit Hijau Subur’s plans to develop 10.000 ha oil palm plantation and mill with a capacity of 45 tons fresh fruit
Table 5. CV Marantika’s Non-Tax State Revenue payments No
PNBP Type
2017
2018
2019
1.
PSDH
IDR 20.699.700
IDR 16.599.240
0
2.
DR
USD 27.243,48
0
0
Source: https://sipnbp.phpl.menlhk.go.id (accessed on December 2019)
bunches (FFB) per hour. The plantation is located in Semidang Gumay, Tanjung Kemuning, Kelam Tengah, Kaur Utara, Padang Guci Hulu, Padang Guci Hilir, and Lungkang Kule Subdistricts. Monitoring Findings CV Marantika’s logging site is directly adjacent to Air Kedurang Limited Production Forest.
From WALHI Bengkulu’s geospatial analysis and the coordinates obtained during field monitoring on 7 November 2019, it is strongly suspected that CV Marantika harvested timber outside of their permit location. This analysis shows that timber logging took place in Air Kedurang Limited Production Forest ±58 ha. Meanwhile, the
remaining land area for logged timber from CV Marantika’s IPK is 79,74 ha. WALHI Bengkulu’s field monitoring found piles of logs of Meranti, Kelungku Daun, Mantuke, Seluwai, Balam (Palaquium spp.), Medang, Kruing (Dipterocarpus spp.), Kayu Abang, and mixed wood species in the logging site. WALHI Bengkulu’s research and analysis based on the official website for Online Non-Tax State Revenue Information System (SIMPONI)34 found that in 2018 CV Marantika paid PSDH of IDR
Figure 23. Analysis of CV Marantika’s indicated logging sites
20
Figure 24. CV Marantika’s timber supply chain
16.599.240 but has not paid DR (reforestation fee) which is written as ‘zero’ (Table 5). The company has not paid either their 2019 PSDH and DR to the State, despite transportation of logged timber that year. This shows potential state losses from Non-Tax State Revenue (PNBP) and an indication of natural resources corruption in the form of timber product utilization permit issuance.35 WALHI Bengkulu conducted further research through MoEF’s SILK website and did not find information on S-LK in CV Marantika’s IPK. This does not comply with Regulation of Minister of Environment and Forestry No. P.30/Menlhk/Setjen/ PHPL.3/3/2016, stipulating that IPK holders must also have S-LK. CV Marantika’s Timber Supply Chain To follow up on their monitoring results, WALHI Bengkulu submitted Letter No. 20/ ED/WALHI BKL/I/2020 dated 14 January 2020 to the Bengkulu Province Investment and Integrated OneStop-Service Agency 21
Figure 25. CV Marantika’s timber supply chain
to request data and information regarding CV Marantika’s identity and IPK legality to utilize timber from a land clearing in PT Citra Sawit Hijau Subur’s permit. However, to date there has been no response from the Investment Agency. WALHI Bengkulu also communicated with online media to obtain public support and push law enforcement to handle and process this
case. From that effort, in February 2020, the Kaur District Police followed up and arrested illegal loggers in the site of CV Marantika’s IPK Location Permit.36 3.4 South Sumatera Province South Sumatera covers an area of approximately 9,2 million ha, and 3.487.467 ha of this area is forest area.37 Today, only around 800.000 ha of its natural
forest is still in good condition. Natural forest degradation is caused by many factors, including industrial plantation forest expansion. The South Sumatera Forestry Agency’s 2019 data shows that industrial forests in the province reached over 1.375.312 ha and controlled by 19 companies.38 The province has an extensive peatland, covering ± 1,26 million ha and making up ± 20 percent of the total peatland in Sumatera Island. Peatland in the province is found in several districts: Ogan Komering Ilir with ± 570.000 ha (45,4 percent); Musi Banyuasin and Banyuasin ± 581.000 ha (46,2 percent); Musi
Rawas ± 58.000 ha (4,6 percent); and Muara Enim with ± 45.000 ha (3,6 percent).39 South Sumatera’s remaining natural forests and peatland are facing a dire threat due to land and forest fires, encroachment, and illegal logging taking place in a number of forest status and functions. In December 2019 to February 2020, through its monitoring work, JPIK found that there is ongoing illegal logging in Lalan Mangsang Mendis Production Forest, specifically in Muara Medak, Kepayang, and Merang Villages in Bayung Lencir Subdistrict, Musi Banyuasin District.
3.4.1 Monitoring Illegal Logging in Lalan Mangsang Mendis Production Forest Muara Medak Village is one of the villages in Bayung Lencir Subdistrict, Musi Banyuasin District, South Sumatera Province, where a majority of its area is production forest dominated by peat-. The village is home to industrial forests (IUPHHK-HT) as well as plantations owned by the company and community; therefore, there are numerous canals directly linked to rivers.40 These canals are used as a channel to extract illegally logged timber from Lalan Mangsang Mendis Production Forest
Figure 26. Illegally logged timber is transported out in Tujuh Subvillage, Muara Medak in April 2018
22
Management Unit. Tracking Illegal Logged Timber From October to December 2019, JPIK South Sumatera province analyzed and obtained reports from local communities of illegal logging activities in Tujuh Subvillage, Muara Medak Village in Musi Banyuasin District. Illegal logging took place in Lalan Mangsang Mendis KPHP over an area of
265.953 ha.41 From this information, in February 2020, JPIK South Sumatera conducted field verification to find evidence of the illegal logging.
canals used as a timber extraction channel. In general, timber was extracted from the production forest in the form of Âą4 m long sawn timbers.
The investigation team found piles of illegal timbers in Tujuh Subvillage in Muara Medak Village, that point to illegal logging in Lalan Mangsang Mendis KPHP. Illegal logging took place around Medak River, Merang River, and along
These activities are carried out by groups of local communities from Muara Medak Village employed by timber cukong. The first team is responsible for felling and transporting the illegal timber to a temporary log yard, the second team transporting the timber from temporary log yard to a log yard owned by cukongs in South Sumatera and Jambi Provinces.
Figure 27. Illegally logged timber drifting in the river toward Sepuluh Subvillage in Muara Medak Village. (July 2020)
Source: Monitoring by JPIK South Sumatera, 2020
Figure 28. Diagram of illegal logging actors in Musi Banyuasin District, South Sumatera
23
The timber volume produced depends on the number of harvesters, available facilities and capital, and weather conditions. In one month, one group can harvest Âą180 Meranti (Shorea spp.), Jelutung (Dyera costulata), Gelam (Melaleuca leucadendra), and mixed wood logs. It is suspected that illegal loggers must pay retributions to certain officials to make these activities appear to be legal. According to local communities, the illegal logs are distributed throughout South Sumatera Province, transported, tied into rafts, along rivers and canals by motorboats to Bayung Lencir River Port. The timber transported to Jambi Province is stored in a log yard in Tujuh and Lima Subvillages in Muara Medak District
before it is transported by truck. After the 2019 forest and land fires, the majority of illegal logging activities were halted due to increased attention from law enforcement, local government, and village governments, as well as exposure by journalists and civil society organizations. Any illegal logging that was still taking place were insignificant, but if allowed to continue, more significant cases may reoccur. Figure 29. Illegal timber from post-2019 forest fire (January 2019)
Source: Monitoring by JPIK South Sumatera, 2020
Figure 30. Timber distribution flow chart
Meanwhile, on Wednesday, 1 July 2020, JPIK South Sumatera Province received reports from local communities of illegally logged timber transported through rivers and canals in Tujuh and Lima Subvillages, with timber rafts reaching Âą 200 meters. According to the transportation driver, the logs come from Berbak National Park in Jambi. Monitoring Follow-up To process this illegal logging case, JPIK
coordinated with Lalan Mansang Mendis KPHP as the area forest manager and communicated with local communities surrounding the production forest. JPIK National Secretariat also submitted a complaint to MoEF’s DG of Law Enforcement through Letter No. 40/NAS/JPIK/ XIII/20. 3.5 Banten Province Banten Province has rich natural resources and biodiversity, protected by several conservation areas in its
administrative region: Ujung Kulon National Park (120.551 ha), Halimun-Salak National Park (42.925,15 ha), nature reserves (4.238 ha), and tourism parks (528,15 ha). The province also has 81.184,34 ha42 production forest managed by Perhutani under Banten Forest Management Unit. Karangantu Industry Center in Serang District is well known as a trade center as it is located near the port on the Banten Kingdom era. It was a center for timber trading from other 24
islands and remains so up to today. Several primary industries are also growing in Banten. After Law No. 23 of 2014 on Local Government came into effect, government authority shifted from the District Government to the Provincial Government. This has led to many large- to small-scale capacity industries could not be monitored regularly by the Province Environment and Forestry Agency due to the lack of human resources. It is proven from the high number of primary industries operating in Banten; only approximately 30 percent are SVLK certified. One likely reason is the lack of local government officials’ understanding of SVLK implementation for the entire timber processing industry. This requires the role of all stakeholders to continuously improve timber trade governance to prevent illegal timber trade practices in Banten Province.
forests in outer Java Island and Perhutani in Java Island, community timber becomes an alternative source of raw materials for timber industries. Banten has three timber industry centers: Industry Center I in Serang, Industry Center II in Tangerang, and Industry Center III Karangantu, with an average timber raw material demand of 251.335,56 m3. Meanwhile, on average, 476.800,63 m3 of timber is distributed from Banten as processed timber.43 In addition, according to a 2019 Industrial Raw Material Supply Plan and Realization (RPBBI) report, as much 82.068,64 m3 timber is sourced from community forests outside of Banten Province. This timber comes from eight provinces, including West Java, Central Java, East Java, Yogyakarta, East Kalimantan, Papua, Bangka Belitung Islands, and Lampung.
Based on JPIK Banten’s monitoring, SVLK implementation in Banten Province still faces a number of challenges. A lack of awareness of SVLK requirements and resources within the Banten government authorities is one of the likely underlying factors. The Banten Province Forestry and Estates Agency’s data show that there are 73 primary industries currently in operation, but only 25 are SVLK certified. In addition, only 70 primary industries linked in the SIPRBBI.44 One of the non-SVLK primary industries is PD Sinar Agung, a target of JPIK Banten’s monitoring work in November 2019 to January 2020. PD Sinar Agung’s address is Jalan Klenteng No. 27, Kasemen Subdistrict, Serang District in Banten Province. PD Sinar Agung was established in 1981 and produces sawn timber for construction and
From December to January 2020, JPIK Banten Provine carried out monitoring of timber trade from outside of the island entering Karangantu Industry Center in Serang District, Banten Province. This was specifically done to monitor one timber industry: PD Sinar Agung. 3.5.1 SVLK Implementation in the Primary Industry PD Sinar Agung
With decreasing timber supply from natural 25
Figure 31. Pie chart of SVLK implementation in primary industries in Banten Province
Figure 32. Truck with Lampung plate number unloading timber in PD Sinar Agung (January 2020)
materials for local to national projects. This monitoring followed up on initial information from local communities around the industry concerning the transportation of timber from outer the island being supplied to one of the timber companies in Karangatu with questionable legality status. Monitoring Findings JPIK Banten’s research in PD Sinar Agung found timber unloading activities, and several large trucks with Lampung plate numbers were observed entering, leaving, and parked in front of the company site. The monitoring team also noted two different industry entities in the company’s site: CV Bukit Tursina and PD Sinar Agung, in which Figure 33. PD Sinar Agung timber supply chain
26
the companies’ owners are family-related. This situation is suspected to be a strategy for laundering illegal timber.
loading and unloading timber in Gresik, as well as Tanjung Perak port for exporting timber products worldwide.45
To review the timber transportation and mutation report from PD Sinar Agung, JPIK Banten submitted two requests for data and information through Letters No. 248/Banten/ PHMN/I/2020 and No. 042/JPIK_Banten/I/2020; however, there has been no response. JPIK Banten also visited the Banten Province Environment and Forestry Agency several times but was not given the requested information.
East Java Province has 1.084 primary industries or sawn timber industries (Table 7) with various capacities. The high number of timber processing industries presents a challenge for stakeholders to ensure that raw materials received, processed, and distributed have met all legality and sustainability requirements under applicable Indonesian laws.
After searching the 2019 RPBBI Online Information System, no information was found on PD Sinar Agung industrial raw material plan and realization. This does not comply with Regulation of Minister of Environment and Forestry No. P.1/ MENLHK/SETJEN/ KUM.1/1/2019 concerning Business Permit for Primary Industry Timber Product, specifically Article 43 that makes it mandatory for the permit holder to develop and submit their RPBBI annually. 3.5 East Java Province East Java Province is home to 1.352.739,01 ha of forest area. (Table 6). This province plays a critical and strategic role in Indonesia’s timber distribution and trade, especially for timber sourced from natural forest, industrial forest, and private forest. The province has a port for 27
Since December 2019, all permits for Registered Processed Timber Depot (TPT-KO) in East Java has been revoked following Decree of Head of East Java Forestry Agency No. 522/4307/123.4/2020
dated 31 December 2019. Therefore, sawn timber for raw material in IUI and Small-scale Industrial Permit (TDI) are obtained from primary and secondary industries. Data from the East Java Forestry Agency shows that there are 986 timber processing and sawn timber industries (IUI and TDI) as of 2019, among which are 205 exportoriented companies. From October to November 2019, JPIK East Java Province carried out a series of monitoring studies to understand SVLK implementation in three timber industries in Surabaya City and Pasuruan District, one non-producing exporter (CV Indo Pratama Express) and two timber processing industries (CV Manggalih and UD Tri
Table 6. Forest area based on Designation, 2017 No
Function
Area (ha)
1
Production forest
803.739,84
2
Protected forest
319.926,83
3
Nature reserve
10.958,40
4
WIldlife reserve
18.008,60
5
Nature Recreation Park
6
National Park
7
Grand Forest Park
297,5 171.939,54
Total
27.868,30 1.352.739,01
Source: East Java Province Forestry Agency, 2017
Table 7. Number and capacity of primary industries in East Java No.
Capacity
1 Production capacity ≤ 2.000 m3/year 2 Production capacity 2.000-6.000 m3/year 3 Production capacity ≥ 6.000 m3/year Total primary industries Source: East Java Province Forestry Agency, 2019
Number (units) 441 520 123 1.084
Figure 34. CV Indo Pratama Express based on its address (November 2019)
Indah Jaya). 3.6.1 Monitoring SVLK Implementation in CV Indo Pratama Express CV Indo Pratama Express (CV IPE) is a non-producing exporter that its products are produced based on partnership/supply from other primary and secondary timber processing industries. The Surabaya-based company received its S-LK certification in August 2019 from PT Inti Multima Sertifikasi. Based on JPIK East Java’s research and monitoring, CV IPE’s exported products processed by CV Manggalih and UD Tri Indah Jaya.46
JPIK East Java noted an irregularity in the S-LK issued for CV IPE. CV Manggalih, which is CV IPE’s supplier, is not S-LK certified, and therefore CV IPE’s exported products are of questionable of its legality. This is a violation of Article 3 of Regulation of Director General of Sustainable Management of Production Forest No. 14/2016 juncto No. 15/2016. During verification of the company address, the investigation team only found a small house which did not reflect a business site with storage for timber products to be sold. The
local community were not aware that the site was a timber exporter company. It is suspected that CV IPE is only a broker for exporting Indian rosewood timber sourced from CV Manggalih destined for China. 3.6.2 Monitoring SVLK Implementation in CV Manggalih CV Manggalih is a forestry industry with IUIPHHK for 5.000 m3 annual capacity. The company was established in 2007 and has had its IUI permit since July 2019. JPIK East Java team’s monitoring in March 2019 found that the company receives Sonokeling timber 28
Figure 35. Timber being unloaded in CV Manggalih (November 2019)
illegally logged from Tulungagung District. In October 2019, it was found that this company exclusively processes Sonokeling timber from East Java Perhutani and community forests in Central Java. This finding is supported by data from the 2019 RPBBI stating that CV Manggalih has 21 suppliers, comprising Community Forests and Perhutani, though the RPBBI data did not specify on the timber species supplied. Sonokeling is listed in CITES Appendix II47 and requires a distribution permit from the province Natural Resources Conservation Agency. Its distribution requires a Permit for Foreign 29
Figure 36. UD Tri Indah Jaya industry location (November 2019)
Transport of Wild Plants and Animals (SATSLN) or a Permit for Domestic Transport of Wild Plants and Animals (SATS-DN) for domestic distribution.48 In addition, in 2015 CV Manggalih was involved in an illegal Sonokeling from Kalimantan case.49 The monitoring team also observed workers failing to implement OHS standards in an industrial site, as stipulated in the SVLK standard. 3.6.3 Monitoring SVLK Implementation in UD Tri Indah Jaya UD Tri Indah Jaya has held a primary industry permit and TDI permit since 2012. In October 2019, the company was certified by PT Inti Multima Sertifikasi (PT IMS). In November 2019, the company’s S-LK audit summary was uploaded to PT Inti Multima Sertifikasi and SILK’s websites. The summary states that the company has met the standards and verifiers in compliance with Regulation of Minister of Environment and Forestry No. 30/2016. According to interviews with the company employees, the raw materials processed include Teak, and Sonokeling sourced from private forests in several districts in East Java, Central Java, as well as from Konawe District in Southeast Sulawesi. The following is information observed from monitoring in October 2019. a) UD Tri Indah
Figure 37. Non-S-LK Timber supply chain in East Java
Jaya’s products are marketed for domestic markets and exported through CV Indo Pratama Express. b) Export fees through an S-LK certified company range from IDR 3,5 million to 5 million, depending on the exported product amount/volume. c) Employees were not wearing proper personal protective equipment (PPE) as stated in the OHS standard while performing their work, but the monitoring team could not obtain a permit to take photos in the industry’s site. Monitoring Follow-Up Based on findings on
CV IPE, JPIK National Secretariat submitted complaint No. 03/NAS/ JPIK/I/2020 dated 21 January 2020 to PT IMS due to its client exporting timber from a non-S-LK certified supplier. PT IMS responded by stating that the S-LK was appropriately issued as the exported timber was obtained from an industry certified with S-LK or DKP. In other words, if the supplier does not have S-LK but has DKP, then this is accepted as legal and in compliance with SE/21/2016. PT IMS stated that CV IPE receives timber from companies whose raw materials are from community forests, therefore DKP is sufficient and S-LK is 30
not mandatory. JPIK East Java instead found that CV IPE’s supplier is a large industry which must be S-LK certified. To follow up on the monitoring results in CV Manggalih, JPIK East Java coordinated with the Java, Bali, and Nusa Tenggara Regional Environmental Law Enforcement Agency (BPPLHK) in Surabaya about allegedly storing illegal timber. JPIK East Java is also coordinating with the Production Forest Management Agency in Denpasar, Bali to evaluate the certification permit issuance for the PHPL Technical Officer for CV Manggalih. JPIK East Java, through the East Java Forestry Agency, is pushing CV Manggalih to implement SVLK in its industry immediately. Following JPIK’s monitoring report, the local Forestry Agency evaluated primary industries that have not implemented timber administration as stipulated in applicable regulations, including CV Manggalih. As listed in SILK data, CV Manggalih finally obtained S-LK from PT Inti Multima Sertifikasi in February 2020. Before it cooperated with CV Indo Pratama Express, JPIK East Java received information that in February-April 2019 CV Manggalih’s processed timber products were used to supply CV Karya Makmur Sejahtera (CV Kamus) for export to China. JPIK East Java has also received information that the Sonokeling 31
timber processed by CV Manggalih was processed in Tulungagung and failed to meet legality standards. From this finding, JPIK submitted its report to PT TRIC as the S-LK issuer for CV Kamus. PT TRIC followed up on JPIK East Java’s report by conducting a special audit, and on May 2019, CV Kamus’ S-LK was revoked.50 From January to February 2020, JPIK and its coalition drafted a revision for Regulation of Minister of Environment and Forestry No. 30/2016, in which one of the points discussed is about the presence of Non-producing Exporters are suspected to be sites for timber laundering by certain actors. JPIK then suggested that the text “OR DKP” be deleted in Regulation of DG No. 14/2016 on non-producing exporters and SE/21/2016 on SVLK implementation by non-producing exporters to be revoked. This would ensure that nonproducing exporters can only receive timber from S-LK certified industries and timber with DKP are only allowed from industries that are genuinely suitable to use such documents. The text “OR DKP” provides a loophole for timber from uncertified Timber Forest Product Retribution (IPHHK) and IUI to enter the export market. Poor oversight in DKP issuance by local government, especially since Law No. 23 of 2014 came into effect,
which impacts the shift of authority to the provincial government, has caused issues on timber legality. JPIK’s monitoring in 2019 has found that DKP is used for laundering illegal timber, especially Sonokeling, which has been in high demands in the export market for the last five years. 3.7 West Kalimantan Province West Kalimantan Province contains potential forest resources that support forestry industries in Indonesia. The province produces Meranti, Borneo camphor, Keruing, Bangkirai, and Nyatoh timber, as well as mixed woods such as Benuang, Bayur, and Lempung Ipil timber. The province area is approximately 15 million ha, of which 8,2 million ha are forests, and 1,6 million ha are peatlands.51 Through the Forestry Spatial Pattern revision as stipulated in Law no. 26 of 2007 concerning Spatial Planning, which was later approved by the Ministry of Forestry through Decree No. 936/Kpts-II/2013 juncto SK Menhut No. 733/ Kpts-II/2014, forest area was revised to be ± 14.680.700 ha52 (Figure 38). By the end of 2014, there were 33 units of primary industry permits in West Kalimantan Province with an installed capacity of ± 1.119.903 m³/year (Figure 39). In the same period, there were 17 active logging
not develop Annual Work Plans), while six others had their permits revoked.53 To ensure SVLK implementation, JPIK carried out monitoring work from November to December 2019 in PT Erna Djuliawati IUPHHKHA, by referring to Regulation of Minister of Environment and Forestry No. 30/2016 and its implementing regulations. 3.7.1 Challenges in Obtaining Data and Information to Support Monitoring of PT Erna Djuliawati
Source: West Kalimantan Governor on Monitoring and Evaluation of National Movement to Save Natural Resources inForestry Sector, September 2015
Figure 38. Detail Area designation in West Kalimantan
Source: West Kalimantan Forestry Agency, 2014
Figure 39. Number of primary industries in West Kalimantan Province
concessions in natural forest (IUPPHK-HA), four (4) of which with selfapproved Annual Work Plans (RKT). There were
also 14 active Industrial Plantation Forest concessions (IUPPHKHT) and six non-active permits (units that did
PT Erna Djuliawati is one of the first companies and the oldest timber industry in West Kalimantan, beginning as a timber business and sawmill in 1965. In 1979, the company expanded its business to forest management and harvesting by establishing PT Erna Djuliawati, which began its production in 1981. The company is a subsidiary of Lyman Group under the Lyman Timber Division,54 a producer of high-quality timber with added value products. The company’s timber is traded to markets in Japan, South Korea, China, US, and other companies under the brand name ‘Albatros’. PT Erna Djuliawati is SVLK, SNI, ISO 9001, COC, JAS, and LEI certified. The company own a mill in Kayu Tunu Village in Sanggau Kapuas Sub-district, Sanggau District, West Kalimantan. Its IUPHHK-HA or logging 32
Table 8. Companies supplying primary industry raw materials to PT Erna Djuliawati No
Supplier
Province
1
PT Bintang Lima Makmur
Maluku
2
PT Hutanindo Raya Lestari Timber
Central Kalimantan
3
Inhutani I
East Kalimantan
4
Inhutani I Unit Kinyit-Simendurut
North Kalimantan
5
PT Karda Trades
Central Kalimantan
6
PT Mutiara Karlja Permai Unit I
East Kalimantan
7
PT Mutiara Karlja Permai
Central Kalimantan
8
PT Wana Adiprima Mandiri
East Kalimantan
Source: SIRPBBI, MoEF 2019 and JPIK’s analysis
concession is located in Seruyan District, Central Kalimantan with an area of 184.206 ha. The company also has suppliers from outside of the province (Table 8).
has also obtained Sustainable Production Forest Management (PHPL) Certificate from
Monitoring Findings JPIK’s monitoring work was done from November to December 2019, by tracing timber distribution in PT Erna Djuliawati. The monitoring team also did verification of any illegal logging in forest areas by looking at the following scheme (Figure 40). By researching MoEF’s SILK website, it was found that PT Erna Djuliawati (PT ED) obtained SVLK certificate from PT BRIK Quality Services. According to the audit summary, there was no non-compliance of the company’s business permit55. The company
Figure 41. Barcode and V-Legal logo marked on a cross-cut log (November 2019)
PT Mutuagung Lestari. Currently, the company operates in Central Kalimantan, with a log pond in Melawi District in West Kalimantan, and
Figure 40. Timber supply in PT Erna Djuliawati
33
its IUIPHHK is located in Sanggau District, West Kalimantan. JPIK West Kalimantan Province found that PT Erna Djuliawati’s IUPHHK-HA conducted timber cruising before logging. Once the trees are felled, barcodes with V-Legal logos were placed (Figure 41). These barcodes are placed on standing trees, stump, and log. Heavy machinery transports the logs from the logging sites to the forest log landing. The logs are then loaded onto trucks and taken to a log yard and then to a log pond in Melawi District. The monitoring team found that the tree stumps were not marked with barcodes. This does not comply with Criteria 3.1.1 of Regulation of DG Sustainable Management of Production Forest No. 14/2016 that stated stumps of the logged trees in IUPPHK-HA area must be marked with barcodes to be reported in the Production Report (LHP). In the log pond, the logs are manually compiled into rafts then transported to the timber depot in Sintang District. Afterwards, the logs are loaded onto a barge (Figure 42) to be taken to processing industry. It takes 6-7 days for the logs to reach the processing industry, depending on the river tides. During low tide, more time is needed to travel. During field monitoring, no logs from forest areas outside of
Raya National Park and production forest in Melawi District.
Figure 42. Logs transported to industries by barge (November 2019)
the concession were found entering the supply chain. Monitoring Follow-Up Based on assessment standards and guidelines in Regulation of DG Sustainable Management of Production Forest No. 14/2017 juncto Regulation of DG Sustainable Management of Production Forest No. 15/2016, as well as assessments by a certification body, PT Erna Djuliawati has complied by all applicable regulations. For example, the cut logs are marked with barcodes/V-Legal logos. However, the monitoring team faced difficulties obtaining Transportation Documents or Certificate of Legal Timber Product (SKSHHK) as well as the Annual Work Plan (RKT) Map. SKSHHK is a document for transporting timber from the worksite to the processing industry. In December 2019, JPIK West Kalimantan Province sent Letter
No. 02/FP-KALBAR/ JPIK/XII/2020 to PT Mutuagung Lestari to request for data and information on logs distribution and receiver of timber from PT Erna Djuliawati, but to date, there has been no response. During the same period, JPIK also sent a data request to PT BRIK Quality Service on timber receivers’ identity and processed timber trade recap for PT Erna Djuliawati, but there is no response. 3.7.2 Poor Oversight, Forest in Melawi District Drained by Timber Cukong It is a pride for the local community that Melawi District has rich natural resources and is designated by UNESCO as a Biosphere Reserve. However, the forest in Melawi Islands District is in critical condition due to illegal logging and land conversion for oil palm plantation56. In October 2019, JPIK received information and report from the local community of massive illegal logging in Bukit Baka Bukit
Responding to the report, JPIK West Kalimantan Province and local community carried out joint monitoring from November to December 2019. Monitoring was done by ground checking the suspected illegal logging in production forests and tracing illegal timber chain that may be sent to the timber processing industry. The monitors found a pile of logs in a corridor of PT Sari Bumi Kusuma (PT SBK) in Melawi District. The Police are still investigating the source of these logs, whether they were taken from Bukit Baka Bukit Raya National Park or the production forest in Melawi District. The community also said that forest encroachment and illegal logging often still occur in Melawi District. Monitoring Findings Monitoring was conducted in Kahiya Village in Ella Hilir Subdistrict, Melawi District, West Kalimantan. This is the site of illegal logging in a production forest. The monitoring team found Keladan and Medang stumps (Figure 43). It is estimated that the Keladan timber was logged one year ago, while the Medang timber was cut down approximately four months ago. The stumps are located on the foothill. Five logged over sites were recorded near 34
Figure 43. Map of illegal logging sites in forest areas
Kahiya River. The logs from the logging site are transported out twice a week, or eight times a month. In one day, a loader can take out 8-14 logs per person to the timber depot. The timber species harvested include Meranti, Belian/Ulin, Medang, Jelutung, Mawang, and Keladan. In addition, the monitoring team also found a pile of processed Keladan and Belian/Ulin wood. The pile of processed wood is located in Landuk Subvillage, Kahiya Village, Ella HIlir Subdistrict, Melawi District in West Kalimantan. The following 35
information was gathered based on interviews with the community of Kahiya Village.57 a) The Police have following up these cases, but illegal logging activities still continue. b) There are cukong/ timber investors in each sub-village in Kahiya Village funding illegal logging activities. The illegally logged timber is ordered by community members in and outside of the village. c) The community has set regulations according to their
customary law on locations where logging is prohibited. However, there are still a number of people disobeying these regulations. d) Logs are transported through the Kahiya River at 2:00 to 3:00 a.m. to avoid police checks. Monitoring Follow-Up The monitoring team found illegal logging still taking place in production forest in Melawi District. The team has shared this information to the Law Enforcement Agency to process the cukong who funds these illegal logging activities.
while protected forest covers 1.055.771 ha.
Figure 44. Illegal logging in Melawi District, West Kalimantan Province
JPIK West Kalimantan Province also shared this information to the West Kalimantan Province Forestry Agency to assist and provide awareness to the communities around these forest areas to stop illegal logging, especially in Melawi District. In addition, JPIK also shared its recommendations to the West Kalimantan Province Forestry Agency to facilitate and provide livelihood support to the community. 3.8 North Kalimantan Province North Kalimantan Province covers an area of Âą 75.467,70 km2 or
approximately onethird of the area of East Kalimantan Province. The largest district in the province is Malinau District, and Tarakan City is the smallest administrative region. According to an analysis of the annex map in Decree No. 718/MenhutII/2014 concerning East and North Kalimantan Provinces Forest Areas, forest area covers 5.629.112 ha or approximately 80 percent of the land area in North Kalimantan Province. Production forest, permanent production forest, limited production forest, and convertible production forest covers an area of 3.304.802 ha,
The abundant potential natural resources, especially forest timber, has supported the presence of both domestic and export timber processing industries. From the data that JPIK North Kalimantan collected (2018), Bulungan District is home to 10 timber processing business permits, including seven non-active industries and three active industries. Tarakan City is noted to have seven timber processing industry permit holders, three of which are inactive permits and four are active. Nunukan City has 18 timer processing industries, which five are inactive, four are in the process of submitting RPBBI, two are in the process of transferring sites, and seven others are currently not undertaking any activities (stagnant). Meanwhile, there are no forest product industry permits in Malinau District. Tana Tidung District is undergoing administrative process and permit requirements for forest product industry with a 6.000 m3 annual capacity.58 To verify SVLK implementation, JPIK North Kalimantan conducted monitoring from October to December 2019 in IUPHHK-PA of PT Adimitra Lestari and the timber processing company PT Inhutani I UMI Juata, to obtain an understanding of SVLK implementation 36
both companies. The monitoring referred to Regulation of Minister of Environment and Forestry No. 30/2016 and its implementing regulations. 3.8.1 PT Inhutani I Umi Juata Tarakan Ignored the North Kalimantan Province Environmental Management North Kalimantan Province monitoring team found some cases of non-compliance with environmental management, such as one company that has not managed its waste well is PT Inhutani I UMI Juata. This condition shows that the local government’s monitoring is still weak. In fact, the company management unit is a subsidiary of PT Inhutani, a State-Owned Forestry Enterprise that exports its processed timber products to Belgium, Cambodia, Korea, Japan, the Netherlands, and the US.59 On November to December 2019, JPIK North Kalimantan Province carried out monitoring in PT Inhutani I UMI Juata, intending to directly observe the industry’s timber processes from upstream to downstream. This includes monitoring its compliance to submit routine environmental management report in implementing the Environmental Management and Monitoring Plans. JPIK North Kalimantan’s monitoring refers to 37
Figure 45. Logyard and log piles in PT Inhutani I UMI Juata
Figure 46. PT Inhutani 1 UMI Juata wastewater dumping site (November 2019)
Figure 47. PT Inhutani I Umi Juata’s timber supply chain
Regulation of Minister of Environment and Forestry No. 30/2016 and Regulation of DG of PHPL No. 14/2016 juncto Regulation of DG of PHPL No. 15/2016. JPIK North Kalimantan’s monitoring work was done through direct observation by sweeping the coastline around PT Inhutani I UMI Juata and gathering aerial photographs (Figure 45). PT Inhutani I UMI Juata obtained S-LK certificate from PT Mutu Hijau Indonesia (PT MHI). According to the timber legality verification results, PT Inhutani I UMI Juata’s industry meets all principles, criteria, indicators, and verifiers, as well as
assessment standards based on Regulation of DG of PHPL No. 14/2016 juncto Regulation of DG of PHPL No. 15/2016. JPIK North Kalimantan’s monitoring did find a number discrepancies between the audit/ verification result with field condition as follows. a) Nonconformity with Verifier 1.1.1.f concerning the environmental document, such as the management unit’s negligence in using a wastewater treatment facility to meet the requirements. The unprocessed wastewater is dumped on the
coastline and flows into the sea. JPIK also found large volumes of wood waste dumped into the ocean. b) Nonconformity of Verifier 4.1.1.a on OHS procedures. This management unit has not implemented OHS standards correctly for its employees, such as failing to provide personal protective equipment. The monitoring team could not take photographs in the industry management unit due to limited access. Other findings were that the management unit does not have a Permit 38
for Hazardous and Toxic Waste Landfilling. Based on interviews with the company employees, it is founded that used oil from the wood processing machines is dumped directly to the sea. This is a violation of Law No. 32 of 2009 concerning Environmental Protection and Management, specifically Article 59 Paragraph 5, Article 95 Paragraph 1, and Article 102, in which hazardous and toxic waste management requires a permit from a Minister, governor, or district head/mayor under their authority. Monitoring Follow-Up From these findings, JPIK North Kalimantan submitted a request for data and information to the Tarakan City Environmental Agency for a) PT Inhutani I UMI Juata Environmental Management Document, b) Environmental Management and Monitoring Plan
Documents (RKL/RPL), c) 2019 environmental management and monitoring report, d) hazardous and toxic waste treatment evaluation report and e) information on seawater and air qualities around PT Inhutani I UMI Juata’s industrial site. To date, unfortunately, there has been no response from the Tarakan City Environment Agency. JPIK also contacted the local environmental agency by phone but received no response. Meanwhile, to obtain valid data on PT Inhutani I UMI Juata’s timber transportation and mutation report, JPIK North Kalimantan requested data and information from PT Mutu Hijau Indonesia on the recapitulation of PT Inhutani I UMI Juata’s incoming and outgoing logs during January to November 2019. PT Mutu Hijau Indonesia responded that they should get approval from their client (PT Inhutani Unit I UMI Juata) to
share the requested data and information. As of August 2020, the requested data and information has not been provided. 3.8.2 After Findings of Violations, JPIK North Kalimantan Reports PT Adimitra Lestari to Certification Body PT Adimitra Lestari (PT AL) has an IUPHHK-HA for 45 years for an area of 52.100 ha based on Decision of Minister of Forestry No. SK.202/ MENHUT-II/2008 dated 21 May 2008. This concession is located in the Agisan-Wasan Rivers forest area in Nunukan District, East Kalimantan Province (Figure 49). From the information gathered by JPIK North Kalimantan, 61 percent of PT Adimitra’s share is owned by retired Lieutenant General Luhut Panjaitan, current Coordinating Minister of Maritime and Investment Affairs of the Republic of Indonesia.60 PT AL obtained S-PHPL certificate from PT Inti
Figure 48. PT Adimitra Lestari’s concession (Source: http://petahutan.fwi.or.id)
39
Multima Sertifikasi. PT AL’s concession is located in adjacent with Malaysian border, forest area and IUPHHK area: in the north with Malaysia ; in the east with PT Bhumi Simanggaris Indah’s oil palm plantation ; in the south with limited production forest, production forest, and other use areas to; and in the west with Gunung Bujukbah Protected Forest and limited production forest.61 Field Findings JPIK North Kalimantan
Province carried out field monitoring from October to December 2019. This monitoring work was initiated based on concerns from the community around PT AL on tenurial conflict. This conflict is driven by the unclear boundary of Tinampak 1 Village, which is located in PT AL, and the conflict has been ongoing since 2011. Related to this issue, a certification body gave a Moderate score for verifier 1.1.3. Up to today, the tension between PT AL and Tinampak 1 Villagers
remains heightened with no resolution to the boundary conflict. The monitoring team found that there is no clarity on PT AL boundary, especially on the delineation of the company/permit holder’s operational area with the local/ indigenous community. From an ecological perspective, PT AL does not protect or secure the forest optimally, exhibited by forest encroachment taking place in the concession.62 In addition, the team
Figure 49.Logs in PT Adimitra Lestari’s logpond
40
also found that some of the communities have cleared the land for oil palm plantation in PT AL’s concession, causing deforestation in most of the concession.63 On the production side, the monitoring team found logs in PT AL’s log pond without barcodes and the V-Legal logo (Figure 49). During monitoring in PT AL’s temporary log pond (TPK), JPIK North Kalimantan found Meranti logs without barcodes and V-Legal logo. The monitoring team also found logs marked with barcodes and V-Legal transported by truck from PT AL’s logging site to temporary a log pond.
It does not comply with applicable regulations, in which all logs harvested from natural forests must be marked with barcodes and the V-Legal logo. According to the interviewed employees, the timbers are produced to meet the industrial raw material demands of PT Segara Timber and/or PT Sumalindo Jaya Lestari. Another finding was that the public consultation held by PT Inti Multima Sertifikasi failed to engage communities around the concession, especially those in conflict with PT AL. This finding is similar to JPIK East Kalimantan’s finding when monitoring
PT AL back in 2011.64 An interview with one of the employees did not offer enough information about PT AL’s timber distribution, including timber shipment to primary industries because timber transactions are conducted in the log pond. The monitoring team was also unable to obtain SKSHHK documents and LHP (Production Report). However, the team was able to get proof of PT AL’s 2019 PSDH (NonTax State Revenue) and DR (Reforestation Fund) payments through the Information System for Non-Tax State Revenues (SI-PNBP),65 but it was difficult to cross-check this information due to lack of production/ logging data. Monitoring Follow-Up JPIK North Kalimantan has submitted a request for data and information to PT Inti Multima Sertifikasi on PT AL’s timber transportation and mutation report for January to October 2019. The certification body responded by stating that they will request permission from its client (PT AL) first, but the requested data and information has not been provided.
Figure 50. PT Adimitra Lestari’s timber supply chain
41
On the lack of barcode and V-Legal marks on the logs’ cross-cutting in PT AL’s log pond, in early January 2020, JPIK North Kalimantan submitted their complaint to PT Inti Multima Sertifikasi. On mid-January 2020, the certification body responded by stating
that they will carry out a special audit during its annual surveillance in March 2020. The monitoring team has contacted the North Kalimantan Province Forestry Agency regarding findings on the missing barcodes and V-Legal logos on the logs. It is expected that there will be intensive monitoring and facilitation for PT AL, as well as a resolution to the ongoing tenurial conflict between the company and the surrounding communities. 4. Gaps between Certification Body’s Assessment/ Verification Results and Monitoring Results
Independent monitors’ findings of non-compliance or violations are points that should be reviewed by Certifications Bodies (CB) to ensure the credibility and accountability of verification/ assessment result. This information also used to minimize the gap between assessment/verification results and the independent monitors’ monitoring results because CB’s work is limited to a checklist of documents, field samplings in the field, and is undertaken in a limited timeframe. This shows a need to refine the assessment/verifications standard and implementation guidelines by strengthening its traceability, monitoring and routine reporting. Doing so can help prevent gaps between assessment/ verification results and field
implementation, such as timber with unclear origins entering the SVLK supply chain. Through interviews with several CBs, limited access to data and information on traded timber in SIPUHH was observed. However, the data and information are one of reference in verifying data provided by permit holder during assessment/ verification. This limited access can potentially lead to failure in identifying raw materials from unclear origins. JPIK faced a similar situation when crosschecking violation findings during field monitoring. It required great effort and took some times to obtain official data and information from the government, especially for accessing SIPUHH data.
Source: JPIK’s complaints and reports, 2020
Figure 51. Request for information and monitoring reports
42
In the meantime, JPIK’s complaints that were followed up by CB’s special audits led to unsatisfactory results. Because these special audits were conducted based on approval of the permit holders, it is strongly suspected that the audit was set to turn out a good result, and that permit holders eliminated the evidence prior to the audit. The CB and permit holders have compromised on the audit time and company’s preparedness.66 Regarding dissatisfaction to report handling by the CBs, JPIK faced challenges in conducting further monitoring after the special audits. These challenges include JPIK’s limited access to comprehensive information on the special audit results, especially information on conflict management update in certain concessions, as well as limited funds for doing field monitoring. Usually, these complaints are brought to the National Accreditation Committee (KAN), although there are some cases beyond certification schemes handled by law enforcement (Figure 51). 5. Recommendations Based on the analysis and field monitoring results, there are a number of issues that should immediately be solved, and therefore JPIK proposes the following recommendations: a. Central and Local Governments - Follow up on this report by conducting an in-depth investigation, taking action and providing strict penalties with deterrent effects to 43
companies and other parties proven to have conducted these violations in order to prevent similar cases from recurring. - Strengthen and enhance coordination in SVLK implementation, through routine evaluation of all permits for timber/ timber product utilization, processing, and trade. - Revise SVLK regulations by strengthening assessment/ verification guidelines and standards, especially those regarding nonproducing exporters, environmental management, DKP utilization, and strengthening social aspects to minimize conflicts between the company and local/indigenous communities. - Integrate timber distribution information system from upstream to downstream, including strengthening the currently available system such as RPBBI (should stated timber species) and SIPUHH (should also record timber from community and private forests). - Strengthen independent monitors by ensuring access to data and information, securing monitors’ safety and security, and ensuring sustainable financing for independent
monitoring activities. b. Certification Bodies - Immediately carry out a special audit on companies receiving timbers from unverified origins without prior negotiations with the clients. - Revoke all Timber Legality Certificates (S-LK) of sawmills that are proven conducted violations. - Carry out and develop a monitoring system for clients/companies that conducted certification out of surveillance, and measure and encourage certificate holders’ performance in conducting continuous improvement. c. National Accreditation Committee - Increase monitoring and encourage the improvement of Certification Bodies’ performance. - Revoke accreditation of Certification Bodies that are proven failed in fulfilling applicable procedures for SVLK certificate assessment and issuance.
Reference 2019 Indonesia Environment Statistics PHPL: Dari Legalitas Menuju Keberlanjutan (PHPL – From Legality to Sustainability), JPIK 2019 3 SIRPBBI or RPBBI Online is an application for reporting planned and actual industrial raw materials supply by IUPHHK permit holders, and the data is later processed by MoEF. 4 SIPUHH is a series of electronic tools and procedures to prepare, collect, process, analyze, store, present, announce, send, and disseminate information on timber forest product administration. 5 http://sipuhh.net/dashboard/produksi_kb.php?level=provinsi, accessed on 24 July 2020 6 Menutup Celah untuk Menjamin Kredibilitas, Catatan Kritis Pemantau Independen (Closing the Gap to Ensure Credibility: Critical Notes from Independent Monitors), 2019 7 https://www.goriau.com/berita/baca/periode-20182019-indonesia-kehilangan-hutan-462400-ha-akibat-konversi-dankarhutla.html 8 Forestry Governance Analysis in Riau Province, Jikalahari, 2016 9 SIRPBBI, MoEF 2019 10 Hutan Indonesia Yang Terus Tergerus, FWI 2014 11 A wildlife sanctuary is a sanctuary reserve area having a high value of species diversity and/or a unique animal species, in which habitat management may be conducted, in order to assure their continuity and existence. A nature conservation area is a specific terrestrial or aquatic area whose main function is to preserve diversity of plant and animal species, as well as to provide a sustainable utilization of living resources and their ecosystems (Law No. 5 of 1990 concerning Conservation of Living Resources and Their Ecosystems). 12 https://kompas.id/baca/utama/2019/07/02/pembalakan-liar-di-rimbang-baling-melibatkan-warga-lokal/ 13 https://www.gatra.com/detail/news/426037/lifestyle/polda-riau-amankan-2-sopir-dan-85-tual-kayu14 https://www.riauonline.co.id/riau/read/2020/05/22/polda-riau-ungkap-praktik-pembalakan-liar-suaka-margasatwarimbang-baling 15 https://koranmx.com/baca/9856/kayu-dari-rimba-baling-dibawa-ke-sawmill-teratak-buluh.html 16 Based on interviews with local communities and workers around the industries in Simpang Kambing and Lubuk Siam. 17 https://www.riauonline.co.id/riau/read/2020/05/22/polda-riau-ungkap-praktik-pembalakan-liar-suaka-margasatwarimbang-baling 18 https://news.detik.com/berita/d-5024988/polda-riau-amankan-kayu-ilegal-dari-suaka-margasatwa-rimbang-baling 19 https://www.liputan6.com/news/read/120804/menunggu-bencana-di-riau 20 https://news.detik.com/berita/d-5014690/mengunjungi-sm-rimbang-baling-di-riau-masih-ada-illegal-logging-saatpandemi/1 21 SIRPBBI, MoEF 2019, and JPIK’s monitoring 22 Interview with community member around the site 23 Aceh Province 2018 Environment Management Information Document 24 https://www.ajnn.net/news/pemerintah-aceh-didesak-cabut-izin-pt-rencong-pulp-and-paper-industry/index.html, accessed on July 2020 25 https://sumateranews.co.id/pt-rppi-diduga-langgar-hukum-gempur-berupaya-cabut-izin-operasionalnya/, accessed on July 2020 26 https://barometernews.id/menyikapi-bencana-banjir-di-aceh-utara/ 27 http://silk.dephut.go.id/ According to Regulation of Minister of Forestry No: P.18/Menhut-II/2013, SILK is an electronic system that provide integrated service for V-Legal Document issuance and other information for online timber legality verification. 28 https://auriga.or.id/report/getFilePdf/id/report/23/pengaturan_setangah_hati_mengenai_izin_pemanfaatan_kayu_ oleh_masyarakat_adat_di_papua_id.pdf. 29 https://beritakini.co/news/pt-rppi-adalah-perusahaan-investasi-sektor-iuphhk-hti-bukan-pemilik-izin-hph/index.html 30 http://www.walhibengkulu.org/2013/09/permasalahan-dan-data-kehutanan-bengkulu.html 31 Timber Utilization Permit (IPK) is permit to log timber and/or collect non-timber forest product as effect of the activities of a non-forestry permit, such as from a convertible and released production forest, production forest through a forest area swap, forest use with a Borrow-to-Use permit, and from Other Land Use Area (APL) burdened with permit for its designated use (Regulation of Minister of Environment and Forestry No. P.62/Menlhk-Setjen/2015). 32 http://pedomanbengkulu.com/2019/11/cv-marantika-terbukti-telah-mengantongi-izin-pemanfaatan-kayu/ 33 https://www.ciputraplantation.co.id/cshs 34 https://sipnbp.phpl.menlhk.go.id 35 https://www.beritamerdekaonline.com/2019/12/10/cv-marantika-pada-izin-lokasi-pt-chs-ngemplang-pajak/ and www. bengkulutoday.com/ormas-demo-di-mapolres, accessed on July 2020 36 https://www.myedisi.com/rakyatbengkulu/20200223/222004/buru-pemasok-dan-penebang-kayu-ilegal, accessed on July 2020 37 South Sumatra Province Forestry Agency, 2013 1
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Case study in South Sumatra, Riau and Jambi Provinces by FWI, Jikalahari, WALHI Jambi, and WBH, 2014. Map of South Sumatra Province peat land distribution and carbon content, WBH, 2013 40 http://kph.menlhk.go.id/sinpasdok/public/RPHJP/RPHJP_LALAN_MANGSANG_MENDIS.pdf 41 http://kph.menlhk.go.id/sinpasdok/public/RPHJP/RPHJP_LALAN_MANGSANG_MENDIS.pdf 42 https://dlhk.bantenprov.go.id/read/article/89/KONDISI-HUTAN.html accessed on July 2020 43 Ismatul Hakim and Haryatno Dwi Prabowo, researchers in the Center for Social Economy and Forestry Policy Research, Bogor. 44 Banten Province Forestry and Estates Agency. 45 www.jatimprov.go.id 46 Summary of PT Inti Multima Sertifikasi’s 2019 LVLK assessment. 47 https://www.cites.org/eng/app/appendices.php accessed on 20 June 2020 48 Decision of Minister of Forestry 447/Kpts-II/2003 on the Administration of Plant and Wildlife Collection and Distribution 49 https://putusan3.mahkamahagung.go.id/direktori/putusan/7d521dc7b8a242dd80df5f57fdd7ad07.html 50 http://jpikcelebes.or.id/index.php/berita/jawa-timur/sertifikat-dicabut 51 Indonesia Population, 2015. http://www.worldometers.info/world-population/indonesia-population/ 52 Presentation by West Kalimantan Governor during Monitoring and Evaluation of National Movement to Save Natural Resources in the Forestry Sector, September 2015. 53 West Kalimantan Forestry Agency, 2014. 54 http://www.timber.lyman.co.id/ 55 http://silk.dephut.go.id/app/Upload/vlk/20200701/6f93197d580713be819e58082050fb7c.pdf 56 http://www.gcftaskforce.org/ accessed on 4 March 2020 57 Community interview done in 28 November 2019 in Tanduk Subvillage, Kahiya Village in Melawi District. 58 Presentation by North Kalimantan Governor during Monitoring and Evaluation of National Movement to Save Natural Resources in the Forestry Sector, September 2015 59 http://inhutani1.co.id/index.php/produk/ dan http://silk.dephut.go.id 60 https://ekonomi.bisnis.com/read/20131103/44/184423/inilah-16-perusahaan-milik-luhut-pandjaitan 61 http://www.adimitra.co.id/about-us.html?id=ABOUT_US 62 https://kaltim.antaranews.com/berita/7351/adimitra-lestari-komitmen-lestarikan-hutan 63 https://kaltim.antaranews.com/berita/7352/adimitra-lestari-bina-warga-sekitar 64 SVLK Di Mata Pemantau (SVLK in the Eyes of the Monitors), JPIK 2014 65 http://sipnbp.phpl.menlhk.net:8080/simpnbp/rpt_umkab_now?p_prov=34&p_kab=04&p_um=1906A22ADML&p_ thn=2019&p_pnbp=DR 66 Out of JPIK’s nine complaints, there were two responses from CBs to conduct special audits following communication with their clients about the latter’s preparedness for the audits. 38
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This report printed with recycle paper and timber legality certified
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