Sunday, 10 August 2014


The Government must bail out Small-and-Medium Industry [IKM] in the process of making Wood Legality Verification System [SVLK] to be fair to all stakeholders and for credibility of Indonesian businesspeople. The amount was notably justifiable especially to compare with unnecessary expenditures. The cost was affordable and proportional so IKM could have the power to jack up national export. “There are around 4,000 IKM, each needed Rp 30 million per SLVK all totaling Rp 120 billion needed” Chairman of the Association of Furniture Producers [AMKRI] Soenoto disclosed to Business News [4/7].

The Ministry of Industry once set target to bail out 100 SLVK for IKM in furniture Industry in 2014. The SLVK was particular given to small business units who had exported their product. “If the Government is sure that SLVK brings more benefit than problem, just do it the bailout. By calculation, Rp 120 billion is less than civil servant expenses [SPJ] which is around Rp 20 billion it’s a big mistake to see SLVK as a burden” Soenoto said.

One IKM company got one certificate. The Ministry of industry planned to collaborate with Asmindo Association. A team of the Ministry would select IKM companies based on the agreed criteria. Priority would be given to IKM which had done exporting, because the wood being exported must have their origin known so they were marketable. Some buyer countries had set up standard of wood legality, illegal. “We believe there is much benefit of SLVK. The furniture industry alone had posted turnover of around USD 2 billion per annum. The market destination is nearly spread out worldwide including the USA, Europe, China, the Middle East and Latin America. All in all there are 120 countries who buy our furniture product”. (SS) 

Business New - July 11, 2014

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