Rahardjo Benjamin, Deputy Chairman of the Indonesian Concession Holder’s Association (APHI) said that the timeframe for the entry into force of the SVLK certification system was such that members of the Association are having great difficulty complying. In an effort to assist concession holders secure SVLK certification the NGO Borneo Initiative (TBI) has suggested that its own work on SFM certification goes a long way to addressing many of the requirements of the SVLK as the two initiatives are complementary.
TBI is a non profit organization promoting FSC Certification. Jesse Kuijper of TBI said that Indonesia’s SVLK is of a very high standard and a significant initiative by Indonesia. TBI has made a commitment to find a bridge between the mandatory SVLK system and voluntary FSC certification. This was announced at a recent signing of a protocol between TBI-APHI on Combined Certification for Legality (SVLK) and Sustainability (PHPL-FSC) in Natural Forest Management in Indonesia. TBI announced that it has facilitated FSC certification for 37 forest concessionaires in Indonesia covering area of 3.7 million hectares.
Exports to EU jump as V-legal products enter the market
Dwi Sudharto, of Indonesia’s Ministry of Forestry stated that trading verified legal wood products is yielding profits for the timber sector. Data compiled by Indonesia’s Timber Legality Information System indicates that total revenue from export of V-Legal wood products in January and February 2013 was more than US$534 million compared with revenue of US$237 mil. reported in the same period in 2012. Colin Crooks, from the EU Delegation in Jakarta said that the EU member states import around 15% of Indonesian output of wood products and that V-legal products from Indonesia are highly regarded in the EU since the legality of these products has been verified in Indonesia prior to shippment.
Furniture SMEs reel under cost of SVLK certification
Many SMEs in Indonesia are complaining of the difficulty, time taken and high cost of meeting the requirements for SVLK certification. UD Zakky, a furniture exporter in Sukoharja, Central Java recently began the process of SVLK certification, not as an individual company but as part of a group. Group certification is allowed under the SVLK regulations. Despite attempting group certification the management of UD Zakky pointed out that the cost to undertake all the administrative work is high. The company reported that even with group certification the cost could be as high as IDR 50 million (approx US$ 5,000).
The Chairman of ASMINDO-Solo, David Wijaya said that he sympathises with the SMEs who are trying to secure SVLK certification as the process is very difficult as even for larger companies. He added that there are only 10 companies out of the 200 in Solo that have secured SVLK certificates.
MFP and WWF offer support to companies during IFFINA
IFFINA is the annual trade fair and exhibition for the Indonesian furniture and wood-base handicrafts sectors. During IFFINA 2013 the Multi-stakeholder Forestry Program (MFP) collaborated with WWF and the Indonesian furniture and handicraft manufacturers association (ASMIDO) in offering advice and support to Indonesian companies attending IFFINA. MFP, WWF and ASMINDO also arranged a seminar on Indonesian preparedness to meet the new demands in the global market. Since the SVLK regulations came into force at the end of 2012 until the end of February 2013, Indonesia has issued around 11,000 V-Legal export permits for goods destined for 124 ports around the world of which 24 were ports in the EU.
Domestic Log Prices
|Indonesia logs, domestic prices||US$ per m³|
Face and core logs
|Mahoni (plantation mahogany)||135-385|
Domestic Ex-mill Sawnwood Prices
|Indonesia, construction material, domestic||US$ per m³|
Export Plywood Prices
|Indonesia ply MR BB/CC, export FOB||US$ per m³|
Domestic Plywood Prices
|MR Plywood (Jakarta), domestic||US$ per m³|
Export and Domestic Other Panel Prices
|Indonesia, Other Panels, FOB||US$ per m³|
Export Added Value Product Prices
|Indonesia, Mouldings, FOB||US$ per m³|
|Red Meranti Mouldings 11x68/92mm x 7ft up