Wednesday, 19 June 2013


In accordance with the Regulation of the Ministry of Trade no 54/2012, the Government made it compulsory for 26 wood based product types to pocket Certificate of wood Legality (SVLK) as per January 2013. The Ministerial Regulation only obliged 26 products types to pocket SLVK before exporting by January 1, 2013. Meanwhile 14 other wood based products were obliged to be legally certified by January 1, 2014. “The other 24 wood-based products are made by UKM small business and craters so we give them time to make adjustment before application” Bayu Krisnamurthi, Deputy Minister of Trade of the Ministry of Trade, disclosed in Jakarta on Monday (10/12/2012).

Of all the countries which were the export destination of Indonesia’s wood-based products, the market in Europe constituted 10% and Uni Europe were now strictly observing the arriving wood product. Bayu stated recently that he had exercised shipment test of exported legal wood. He explained that shipment test was a form of experiment in export procedures of goods accompanied by V-Legal document. This V-Legal Document was proof of wood legality as substitute to the endorsement mechanism carried out by The Forest Industry Revitalization Body (BRIK) as one of the required document for exported wood from Indonesia.

Through this experimental test, the Government and business people could make a review and to further improve so export of wood might run smoothly by the time the V-Legal Document mechanism was put in effect in January 1, 2013. This would show Indonesia’s readiness to export legal wood to the world’s wood market. Bayu explained that this shipment test would be exercised in 4 Indonesian harbors, i.e. the Belawan harbor in Medan, Tanjung Priok harbor in Jakarta, Tanjung Mas harbor in Semarang and Tanjung Perak harbor in Surabaya with export destinations in Uni Europe countries like England, Holland, France, Belgium, Denmark, Germany, Italy, Greece, and Cyprus.

The V-Legal Document as output of SLVK was effort of the Indonesian Government to protect the Indonesian wood industry from upstream to downstream whereby to penetrate the global market. By running shipment test it was expected that all factors which influenced export activities of SLVK-certified products could be monitored and anticipated. SLVK was expected to serve as strategic solution to step up comparative advantage of Indonesia’s wood products at the international market and as Indonesia’s contribution to environmental protection at global level. “We are optimistic that our export opportunity to Europe would be open wide” Bayu remarked.

Bayu mention that by 2009 the value of Indonesia’s wood export dropped but until 2011 export changed for the better because export of pulp was chalked up at USD 1.9 billion, paper USD 4.3 billion and wooden furniture USD 1.16 billion. By that advancement it was expected the next export value would increase even further. Increase of export value of 2011 jacked up the state’s return on sales. This was uplifted by Indonesia’s export of wood which was predicted at USD 10 billion.

In 2012 total export value of Indonesia’s wood products was still predicted to grow by around 5% - 6% compared to 2011. With the increasing export it was expected that farmers would continue to increasing their planting. In additional to that this increase motivated investors to increase their investment in reforestation. The increasing wood products Indonesia’s domestic products were being highly valued in the global market.  

Business News - December 14, 2012

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