President Joko Widodo’s order to his ranks to provide convenience for business people and investors, seems to be responded to too far without thinking of the adverse effects that will come forward. One example is the revision of the Minister of Trade’s Regulation on the forestry industry that is being drafted as if ignoring the legal timber verification certification (SVLK).
The draft regulation, among other things, states that small and medium industries can export products using the export declaration (DE). Previously, DE could be used by IKMs as long as they did not have a timber legality verification certificate (SVLK) until December 2015. However, the revision did not mention the deadline in other words, it did not need to use SVLK because it was enough to use DE. If applicable, this rule is considered to be a resurgence of illegal logging and the forest is increasingly threatened.
“This is a matter of Permendag 66 ignoring that. DE is not stated at the end until December 31, 2015. It means that it will continue. This means that SVLK is useless. This is not right. We do not give rewards to those who are obedient and those who disobey the law instead get rewards, “said Ida Bagus Putera Prathama, Director General of Sustainable Production Forest Management, Ministry of Environment and Forestry, on Friday last weekend. For this reason, the Ministry of Environment and Forestry requested that this Permendag discuss again.
The Ministry of Trade seemed to consider the SVLK to hamper exports. In fact, if you look at wood product export data, it has actually increased since the implementation of the SVLK.
Putera explained, the value of exports in recent years after using V-Legal actually increased. In 2013, the value of timber industry exports was US $ 6,067,388,152, 2014 which rose to US $ 6,602,595,732 and 2015, only until September it was US $ 8,034,792,378. When we see the comparison between export value using DE (15 HS Code) until September 2015 amounting to US $ 162,340,187.48 (2%), V-Legal (15 HS Code) US $ 1,421,809,541.99 (17.70%). Export value using V-Legal documents of US $ 8,034,792,278.38.
“From the utilization, only 2% used DE. Some of the SMIs that have been SVLK have been processed by 700 IKMs. January 2016 believes all SMIs can get SVLK. What needs convenience? Isn’t it a problem? “
Not much different from Agusjusnianto, KHLK’s Natural Resources Expert Staff. According to him, it would be unreasonable if SVLK was said to have struck export if it saw the value of exports which actually increased when applying this document.
The issue of the SMI which is said to be difficult to obtain the SVLK has actually been facilitated. He said, IKM registered 804 units, using DE 352 units. Medium-term IKM and has received SVLK up to now 278 units. Actually, out of 352 SMIs, only 74 units have not been SVLK. “It means, we are sure that until December 31, with the facilitation of the Ministry of Environment and Forestry, all this can be obtained. From our side, there are no problems with negotiations because it has promised all SVM-certified IKM DE users. “
However, the problem widened when the revised Permendag, the Ministry of Trade eliminated registered exporters of forestry industry products (Etpik). “It’s all messy. What we were aiming for and spending a large budget, with this concept will be meaningless. “
In the revised draft, forestry product exports can already be carried out by forestry (industrial) companies that have industrial registration marks or industrial business permits and trade companies in the export of forestry industry products that have SIUP and TDP. “It’s very, very easy, it’s trimmed, it’s easy to bang. You can imagine … “
Believed by Son. With the deregulation, only the SIUP and the IKM industry permit can export. “This is our debate. This becomes wider with the deregulation they release. What is the filter? This must be rethought. Different context. Until the end of the conversation, there has been no meeting point. “For that, he said, Monday (5/10/15), KLHK and the Ministry of Trade will return to the meeting by inviting business associations.
Smita Notosusanto, Program Director of Multistakeholder Forestry Program, said that the Ministry of Trade might not be aware of international market trends, which are increasingly increasing demand for timber from sustainable managed forest products.
“It’s easy, I want to leave people for export, but what does the market want? After a while we also will not be able to get market and revenue segments that the Ministry of Trade hopes, “he said.
He also felt ambiguous if the SVLK was said to hinder exports. “This actually increases wood exports. The European Union is only 28 countries, which must sustainably manage member countries of timber imports. We also have an agreement with Australia and others. Many other markets also demand sustainable timber. If you leave this, we will return to the illegal timber smuggling country. “
Putera added that the EU was just the beginning. The reality of developments in the global market demands sustainable wood products. In addition, he said, if speaking of influence, the state also needs an image.
“Why is the SVLK strongly supported by the Ministry of Foreign Affairs, because the Ministry of Foreign Affairs helps sit upright when negotiating with other countries. Ministry of Foreign Affairs is very supportive. In addition, the product image of a country clearly greatly affects consumers. If the SVLK is ignored, it can be sagged. This is how it has been ended, zero again. “
Association: SVLK is profitable
Lisman Sumarjani, Director of the Indonesian Furniture Industry Association (Asmindo) said that using SVLK documents was profitable. He shared his experiences when going to the Singapore exhibition. There, he said, gathered furniture associations across ASEAN. “Indonesia has a presentation from the European Union, about sustainable timber. Malaysia is scared. Vietnam panics. They feel they have to start this. In my opinion, SVLK is an advantage, “he said.
He explained, the exporters were routine, for example, how many hundred containers a year and there were those who received orders occasionally. For routine exporters, not only the SVLK, whatever their market demands are fulfilled. “Want the market to ask for ISO 9000, ask the FSC to be fulfilled. No problem.”
The problem, he said, is that some of the SMIs export sometimes, for example, only four containers a year. “Certainly it is difficult for companies like this to easily fulfill various requirements. There is an entrepreneur character like that. Some of our members too. “
He has explained to Asmindo members, that with DE it only ensures that timber comes out of Indonesian ports. “So, I said, where do you want to export? Don’t think that if there is DE, you can export everywhere. “
Markets such as America, the European Union, have demanded sustainable wood products. Also Japan and Australia. “China is not the main export destination. They are exporters. Now if we want to export, we must fulfill (conditions). If our members are routine, all certificates are there. “
Setback of forest governance
M Kosar from Forest Watch Indonesia as an independent SVLK monitor responded. He considered, the revision of the Permendag was a setback for forest governance in Indonesia. “We regret, until now the classic reasons related to the increase in exports of natural resource products including timber are still happening at this time.”
He said, SVLK was a product with stakeholders from the government, employers to civil society organizations. However, he conveyed the neglect of the SVLK. “Let’s go back to improving governance when 2002 was buzzed. At that time there was massive wild logging. At that point this system actually began to be built. “
The SVLK, he said, is also not in the interest of fulfilling the wishes of people outside Indonesia. This system, said Kosar, has been prepared from the start to improve governance so that the forest does not experience more severe destruction. “The Ministry of Trade should be more aware that this SVLK is not only talking about wood and that the product can export. But this SVLK is also a matter of forestry governance. Where the licensing system that was once questioned and is now changing in a better direction. So, it is not only a matter of timber trade but also an improvement in governance. “
Even though, he said, there were SVLKs that still occurred illegal practices, but it had begun to be suppressed. “We are very disappointed because up to now the Ministry of Trade has stated that forest forest resources are the reason for exports to be increased and rules are weakened.”
Similar said Christian Purba, Director of FWI. According to him, the plan to continue DE is a form of swinging the classic way of exporting without considering the validity of wood products. “This also shows that government policies are out of sync and are actually counterproductive,” he said.
This incident, he said, also showed minimal government cross-sectoral coordination. “DE is a form of convenience without considering the destruction of our forest resources which continues to be the target of exploitation.
SVLK was actually built to be an instrument that could stop illegal timber trade. Most importantly, the estuary of the SVLK is an instrument for improving governance. “
He said, the revision of Permendag 65/2015, clearly clearly hurt Indonesia’s commitment to revamping forest governance. “Because the SVLK will be the entrance.
With this policy it will be difficult to ensure that export timber has a clear source of wood. If DE is without a time limit, it is likely that it will smooth out the practices of wood washing and volume, of course there will be more. “
According to Bob, his nickname, if it is said that SVLK inhibits the export of IKM, of course not. Why? Because currently many Asmindo members have obtained the SVLK.
So, he said, the Permendag must be revised with the implementation of DE until the end of this year. “That means that all IKMs and industries must follow the SVLK scheme in effect early next year.”
He emphasized again, even if the current DE applies it is only a transition policy. “Until SVLK will take effect all January 2016.”
For this reason, he said, the problem that must be addressed is the coordination between ministries. “Easy to say but very difficult to practice. Or other options how can the SVLK policy be strengthened to be able to regulate other ministries outside the Ministry of Environment and Forestry? This will avoid events like DE, on the one hand it will be deleted but in other ministries it will continue indefinitely. ”