The Application of SVLK to Business Actors

The Application of SVLK to Forestry Business Actors

Before UUCK exists, forest product utilization is based on Law No. 41 of 1999 concerning Forestry. In every forest product utilization activity, it must comply with applicable regulations. So that it is expected forest sustainability, state income, forest product utilization can be achieved optimally. Forest product administration activity (PUHH) provides legal certainty to all parties which do business in forestry sector through recording, documentation, the reporting of activity plan, logging, transport, and the processing in industries.

Forest product administration implementation is regulated in PermenLHK 66/2019 concerning Timber Forest Product Administration from Natural Forest and PermenLHK 67/2019 concerning Timber Forest Product Administration from Plantation Forest to Production Forest. On both regulations, PUHH is carried out by self-assessment which is completely electronic through Forest Product Administration Information System (SIPUHH). For permit holder which does not carry out Timber Forest Product Administration, they will be subjected to administrative sanction in accordance with the provisions of legislation. The reporting which is recorded in SIPUHH will be carry out in real time. However, there are still weaknesses in this system. First, it is only logs from natural forest will be recorded by SIPUHH Second, not fully integrated with Industrial Raw Materials Fulfillment Plan Information System (SIRPBBI). Third, the monitoring is ineffective because only certain parties can access the data and information in SIPUHH.

In other hand, on the setting of SVLK, permit holder must have Sustainable Production Forest Management Certificate (S-PHPL). Whereas, the permit holder who has not had S-PHPL must have Timber Legality Certificate (S-LK). However, although SVLK is said to a system which assures the legality of timber products, there are still problems in some S-PHPL and S-LK holders, that is logging outside RKT. Furthermore, problems related to social aspect have not fully received special attention. SVLK has been implemented for almost 11 years, an instrument aims to eradicate illegal logging and illegal timber circulation. As the first country to hold FLEGT License, Indonesia deserves to be appreciated, when the negotiation reached an agreement to start the implementation

of FLEGT VPA since 15 November 2016. Moreover, in 2017 according to the Minister of Forestry and Environment which stated that since SVLK has been applied in Indonesia in 2009, the competitiveness of furnitures and crafts continues to increase, especially in European Union market.

However, the Indonesian Government and the exist elements in SVLK scheme must keep increasing the implementation performance. It is because there are home works that unresolved yet, such as openness and the access to the data for Independent Monitors, sustainable funding access, assessment credibility by auditor, and complaint handling and law enforcement which gives a deterrent effect. In other hand, there are still gaps in SVLK implementation which are used by certain people as business actors to get benefit by taking advantage and breaking the rules.

Box 1 Case The monitoring in UD Karya Abadi and PT Gaung Satyagraha Agrindo

UD Karya Abadi as primary industry actor has a supplier named GSA, a concession holder of IUPHHK-HA. In the practice, UDKarya Abadi carried out illegal logging outside PT GSA area by still using timber document of PTGSA. Beside cooperates with PTGSA as the supplier, UDKarya Abadi also has 9 other timber suppliers. They are companies in other natural forest concessions. UDKarya Abadi organized and moved the workers to do illegal logging in the concession of PTGSA, but outside RTK, they are PTHutan Mulya concession, HKm Baraoi Bersatu cooperation, state forest in Batu Tukan village, TBG Tanggui, and Telok village. According to the information from the community surrounding the concession, the illegal logging carried out by UDKarya Abadi has been going on since 2005. UDKarya Abadi uses trucks and trailers around 100 unit and excavator and bulldosser around 30 unit. The timber which has been logged illegally is about 1,000 m3 with the types of timber are Benuas and Karuing. PTGSA provides place to accommodate the timber. All the illegal timber is labelled in the name of logs from PTGSA to then be sawed in UDKarya Abadi. After that, the processed timber is sent by UDKarya Abadi to Surabaya through two lanes, they are Sampit and Banjarmasin ports. Information got by the monitor, the processed timber is sent to UDOngko and UDCahaya Baru in Surabaya, East Java.

Illegal logging timber which is labeled/barcode by PT. GSA To be sent to UD. Karya Abadi