The Export Provision of Forestry Products

The Export Provisions of Forestry Products

Along with the change of SVLK regulation, the export provision regulations also change for several times. Starting from the regulation of Minister of Trade (Permendag) 20/M-DAG/PER/5/2008 which has been applied before SVLK regulation exists which then is changed with Permendag 64/M-DAG/PER/10/2012 concerning the Export Provision of Forestry Industry Product in 2012. The last change is Permendag No. 93 of 2020 concerning the Change of the Minister of Trade Regulation No.74 of 2020 concerning Export Provisions of Forestry Industry Product.

Tabel 2. The Regulation Changes of Forestry Products Export Provision

Year Number of the Minister Regulation The Title of the Minister Regulation The Point of Change

2012 Permendag 64/MDAG/Per/10/2 012

2013 Permendag 81/MDAG/Per/12/2 013 The Export Term of Forestry Product

The change of Permendag Number 64/M- This regulation obliges

Processed Timber

Product or exported furniture meet the legality standard. - The export of forestry industry product is only able to be carried out by forestry industry company which has received acknowledgement as

ETPIK and Trading company in export field which has received recognition as non-producers ETPIK.

The schedule to complete the V-Legal document for forestry industry product.

Year Number of the Minister Regulation The Title of the Minister Regulation The Point of Change

2014 Permendag 97/MDAG/Per/12/2 014

2015 Permendag 66/MDAG/Per/8/20 15

2015 Permendag 89/MDAG/Per/10/2 015

2016 Permendag 25/MDAG/Per/4/20 16 DAG/Per/10/20 12

Export Provision of Forestry Industry Product

The change of Permendag Number 97/MDAG/Per/12/20 14

Export Term of Forestry Industry Product

The change of Permendag 89/MDAG/Per/10/20 15 For SMEs which have not had S-LK can export after receive recognition as ETPIK by using Export Declaration for replacing V-Legal document.

The recommendation of Directorate General of Agroforestry Industry, which states that the evidence of Due Diligence of the laboratorium of non-timber paper and pulp materials is no longer applied.

- The export of forestry industry products is only able to be carried out by industry company that has TDI,

IUI, TDP, and trading company which has

SIUP and TDP. - The Provision of obligation to get ETPIK recognition is no longer applied.

Mandatory legality license for all forestry products export included furniture and handycraft.

Year Number of the Minister Regulation The Title of the Minister Regulation The Point of Change

2016 Permendag 84/MDAG/Per/12/2 016

2017 Permendag 12/MDAG/PER/2/2 017

2017 Permendag 38/MDAG/Per/6/20 17

2020 Permendag Number 15 of 2020 Concerning Export Provision of Forestry Industry Product

The change of the Trade Minister Regulation Number 84/MDAG/PER/12/20 16

The second change of the Minister of Trade Regulation Number 84/M DAG/Per/12/20 16 concerning the Export Provision of Forestry Industry Product

Concerning the Export Provision of Forestry Industry Products Mandatory legality license for all forestry product export.

There are several forestry industry products which are only able to be exported after they are verified.

The removal of the Provition of some forestry industry products which is able to exported after it is being verified.

- Wood export is no longer a mandatory to use SVLK or V-Legal - This regulation was revoked and back to

Permendag 84/M-

DAG/Per/12/2016.

Year Number of the Minister Regulation The Title of the Minister Regulation The Point of Change

2020 Permendag 74 of 2020

2020 Permendag 93 of 2020 Export Provision of Forestry Industry Products

The change of permendag 74 of 2020 concerning export term of forestry industry products. Mandatory legality license for all forestry products export.

Mandatory Legality License for all forestry product export.

The change of export term regulation of forestry product has been protested by many parties in 2000. This regulation changed from Permendag 84/2016 into Permendag 15/2020 brang a lot of criticism from Independent Monitors side and academics. It is because in Permendag 15/2020, wood export is no longer a mandatory to use SVLK or V-Legal document. Many parties consider this is a setback because it is worried about happening illegal timber circulation to be exported. Moreover, the regulation is considered to damage Indonesian timber reputation from business aspect. However, by many critism from many parties, the the regulation of export provision of forestry industry product is back to Permendag 84/2016 and it has been changed and now uses Permendag 74/2020 jo Permendag 93/2020.

V-Legal document becomes a mandatory requirement for exporter which will export forestry products. This document is a license of timber products export, which issued by Timber Legality Verification Body (LVLK), for exporter which has had Timber Legality Certificate (SLK). V-Legal document aims to assure that the timber materials which used to make the timber products are from legal source. When V-Legal document is removed from export provision regulation, it will definitely hurt multistakeholder’s initiative which has been built for along time.