SVLK: Improving Forest Governance and Promoting Trade of Legal Timber Products from Indonesia
WHAT IS SVLK ? Indonesia initiates the development of its own timber legality assurance system, called the SVLK (Sistem Verifikasi Legalitas Kayu) since 2001 to complement the tough law enforcement policies to combat illegal logging. At the time SVLK, Indonesia was notorious as an ‘illegal logging’ country. Law enforcement alone could not stop the massive logging of the forests, especially in a decentralized state like Indonesia, where natural resources management are in the hands of local governments. SVLK therefore complements law enforcement measures in combatting illegal logging by utilizing market forces and providing incentives for the timber-based industry to trade their products in a sustainable manner. Sustainability of Indonesia’s forests, the primary source of the timber-based industry, is the key objective of SVLK. The system provides incentives for legality by promoting market access for verified legal products and blocking market access for illegal products. SVLK promotes broader governance reforms, such as improved information, transparency, and capacity and community rights. The system was developed through multi stakeholder consultations involving government agencies, the private sector and civil society organisations. It is the first system of its kind in Asia.
SVLK: IMPROVING FOREST GOVERNANCE AND PROMOTING TRADE OF LEGAL TIMBER PRODUCTS FROM INDONESIA
SVLK functions as “passport” to enter global legal timber market
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5 Promoting legal timber from sustainable sources
Increasing dignity of the nation
Eradicating Illegal Logging and illegal timber trading
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SLVK function as “passport” to enter global legal timber market
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Improving the govenance of forrest and forest-based industry
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Assuring timber legality
Under the SVLK, Indonesian timber is
or from converted production forest
deemed legal when its origin, production,
Legality Standard 5. For primary and
processing, transport and trade are verified
downstream forest-based industries and
as meeting all applicable Indonesian laws and
traders
regulations. There are five legality standards under the SVLK, each with a set of principles, criteria, indicators and verifiers, all based on Indonesian laws, regulations and procedures:
The assessment of performance and the verification of legality is carried out by independent auditors from Conformity Assessment Bodies accredited by the
Legality Standard 1. For concessions within
National Accreditation Committee (KAN). The
production forest zones on state owned/
process applies standards of assessment/
company managed lands: natural production
verification as developed by representatives of
forests, (industrial) plantation forests, forest
various forest stakeholders in Indonesia and
ecosystem restoration, forest management
stipulated by the Minister of Environment and
rights
Forestry.
Legality Standard 2. For community within production forest zones on state-owned
SVLK AND GLOBAL TRADE OF TIMBER PRODUCTS
lands
SVLK also responds to increasing global
Legality Standard 3. For privately-owned/
market demands for ‘green’ products,
used forests/land
especially timber-based products harvested
Legality Standard 4. For timber use rights
from sustainably-managed forests. Demand
within non-forest zones on state owned lands
for such green products in importing
plantation forests and community forests
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SVLK: IMPROVING FOREST GOVERNANCE AND PROMOTING TRADE OF LEGAL TIMBER PRODUCTS FROM INDONESIA
countries in Europe, North America, and
EU, towards the issuance of a FLEGT license
Australia are on the rise, signaling greater
for all timber-based exports to EU. With this
awareness among consumers to promote
license Indonesia will dominate the EU market
environmental causes. Indonesia is well-placed
as the first country in the world to obtain such
to lead in these markets because of SVLK.
a license that provides fast track access to the
Indonesia became the first country in Asia
EU market in all 28 member countries. Aside
to negotiate and ratify a FLEGT VPA Forest
from the EU, Australia also recognizes SVLK
Law Enforcement, Governance and Trade –
as a timber legality assurance system for all
Voluntary Partnership Agreement) with the
timber-based imports from Indonesia.
Main Market European Union
Progress The FLEGT VPA (Forest Law Enforcement Governance and Trade – Voluntary Partnership Agreement) was signed on 30 September 2013 and came into force on 1 May 2014.
Australia
The Country Specific Guideline (CSG) Indonesia was signed on 16 October 2014.
Japan, Korea, China, Canada
In the negotiation process
Since its enactment, the use of V-legal documents has increased the export values to following regions: EUROPEAN UNION 2015 USD 744.6M
NORTH AMERICA
2015 USD 973M 2014 USD 621.9M
2014 USD 644M
NON-EU EUROPE 2015 USD 20.8M
2015 USD 5.2B
2014 USD 13M
2014 USD 4.8B
ASIA
2015 USD 240M 2014 USD 107M AFRICA
OCEANIA
2015 USD 739M 2014 USD 317M
source: SILK online, October 2015 www.mfp.or.id
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SVLK: IMPROVING FOREST GOVERNANCE AND PROMOTING TRADE OF LEGAL TIMBER PRODUCTS FROM INDONESIA
MULTISTAKEHOLDER PARTICIPATION Multistakeholder participation is critical to the success of SVLK. Cross government agencies both at national and local levels, the private sector, including auditing bodies and civil society actively engage in the implementation of SVLK. SVLK is the only timber legality assurance system in the world that integrates the role of civil society as independent monitors to ensure its credibility.
PRIVATE SECTOR To comply with Indonesia’s timber legality assurance system To better understand the VPA requirements To promote trade in FLEGT-licensed timber
RELEVANT MINISTRIES (Ministry of Trade, Ministry of Industry, KAN, Ministry of Foreign Affairs, Ministry of Economic Coordination, Ministry of Finance cq. Customs) To coordinate the SVLK implementation, including to develop mechanisms and standards on exports and imports
To conduct consultations and coordination on SVLK mechanisms, monitoring, and public awareness
MINISTRY OF ENVIRONMENT AND To implement trainings in FORESTRY providing supervisions, to facilitate SVLK processes
CIVIL SOCIETY (CSOs, NGOs, Associations, Media)
LOCAL GOVERNMENTS (Forestry and Industry and Trade Offices, Governor, Head of Districts)
Multistakeholder Forestry Programme Manggala Wanabhakti Building, Block VII, 6th Fl. Jl. Jend. Gatot Subroto, Jakarta 10270, INDONESIA P: +62 21 573 7094
MINISTRY OF ENVIRONMENT AND FORESTRY REPUBLIC OF INDONESIA
Dipo Business Center, 9 th Fl., Unit B Jl. Jend. Gatot Subroto Kav 50-52 Jakarta 10260 INDONESIA P: +62 21 29866400-1 | F: +62 21 29866402 E: mfp@mfp.or.id | W: www.mfp.or.id
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