Sunday, 11 November 2012

WOOD VERIFICATION LEGALITY SYSTEM POTENTIAL TO EXPAND EXPORT MARKET


The government must give assurance that the international world, especially the European Union, could accept Wood Legality Verification System (SVLK) certificate as a forest management instrument approaching the mandatory application of the regulation at the end of this year. “The assurance must be of international scale to show government’s reputation. If this can be applied, SVLK application could expand Indonesia’s export market”, said Chairman of Indonesian Pulp and Paper Association (APKI), Misbahul Huda. He also reminded the government to consider providing incentive for concession and SVLK certificate holders.

This is because concession holders are committed to apply sustainable management, and the cost for obtaining certification is uncheap”, he said. Huda is in the opinion that incentive could be in the form of legal assurance on land certainty and dispute with the community around concession area and government’s support in facing black campaign launched by foreign non-governmental institutions (NGO). “So, the problem is not merely about illegal timber, but also about clear and clear land area as well as anticipation of black campaign launched by NGO who brings foreign trade mission”, Huda said. Huda admitted that so far, Indonesia’s export market, especially pulp market, has been decreasing, especially due to black campaign launched by foreign NGO.

While, in fact, Huda said, Indonesia’s potency to broaden export market for pulp and paper is high. Concerning market expansion, President Director of PT Riau Andalan Pulp and Paper (RAPP), Kusnan Rahmin, predicted that demand for pulp and paper globally will continue to increase until 2015. “The growth will be accelerated by increase of demand in several countries, especially in China and India”, Kusnan said.

The satisfactory growth in pulp and paper demand, Kusnan said, will open an opportunity for Indonesia to become a global player by still prioritizing sustainable forest management, including focusing on analysis of High Conservation Value (NKT). “We have conducted NKT analysis since 2005”, said Kusnan. Kusnan added that RAPP has obtained SVLK certificate and Sustainable Production Forest Management (PHPL) certificate on plantation forest that has been managed by the company since 2010. Both certifications have proven that wood originating from plantation forest managed by RAPP is not only legal or valid, but it also originates from plantation forest managed sustainably”, Kusnan said.

Bambang Hendroyono, Director General of Forestry Business Development at the Forestry Ministry, said that SVLK was born because in certain period, illegal logging and trade of illegal timber is highly rampant so that foreign image about forest management in Indonesia is very bad. This is due to low welfare of the communities around the forests. This condition also causes competitiveness of Indonesia’s foreign products to become low. On the other hand, the international trend is proof of wood legality.

SVLK is a soft approach to illegal logging and illegal trade. It is a verification system arranged by multi stakeholders to ensure legality of source of wood circulating and traded in Indonesia. With SVLK, all government regulations concerning wood trading are implemented. SVLK proves that wood and wood products produced are derived from valid sources. Indonesia’s forestry administration is also improved. Competitiveness of Indonesia’s wood products is also improved. Illegal logging and illegal trading practices are minimized and community’s income is improved.

SLVK is the only wood legality verification system applicable in Indonesia. The benefit of holder of SVLK certificate is that he or she released from inspections that generate high-cost economy. SVLK’s principle is good management practices, representedness, and openness. Every timber that has obtained SVLK certification will receive a V-legal mark, Currently, it is still on trial stage, and it will be fully implemented in 2013.   

 Business News - September 7, 2012



  
   

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