JPIK Answers For PT IMS’s response to the Report “Licensing for Criminal Acts”

JPIK Answers For PT IMS’s response to the Report “Licensing for Criminal Acts”

In connection with the submission of responses and clarifications from PT Inti Multima Certification (IMS) by letter No. 017 / IMS-Adm / VI / 2017atas JPIK and EIA reports about STILL LICENSING FOR CRIMINAL ACTS: How the Illegal Illegal Oil Palm Company Damages the Reformation of the Wood Industry in Indonesia which was published on June 7, 2017, through this letter, we first thank you and herewith we also convey the response / feedback (as attached) for the submission of responses and clarification that PT IMS delivered.

The report published by JPIK and EIA on June 7, 2017 is a follow-up of JPIK’s report with EIA previously in 2015 about LICENSING FOR CRIMINAL ACTS: How Expansion of Oil Palm Encourages Illegal Logging in Indonesia. Report the violation case to the Directorate General of Law Enforcement, the Ministry of Environment and Forestry, the Police, and other related institutions.

JPIK, together with EIA, views the above violation cases as a major threat to the credibility of the SVLK.

As detailed in the report that JPIK and EIA collated, this report mainly focused on the Ministry of Environment and Forestry and law enforcement agencies to make efforts to deal with law enforcement through a process of further investigation and investigation. The effort to handle the continued enforcement of the law is an important step so that this does not become a pile of problems that have the potential to injure the SVLK.

As for the Certification Body (LVLK / LPPHPL), it is hoped that there will be a better form of communication between Certification Institutions and Independent Monitors to support each other in jointly maintaining SVLK credibility and accountability, including (i) guidelines related to Public Reporting and Resume from the certification process (both initial certification and surveillance) and (ii) guidelines relating to Complaints Settlement through the Adhoc Team as stipulated in the applicable rules.

Content of JPIK and EIA reports Response and clarification of PT IMS JPIK’s response to the clarification of PT IMS
I.  Executive Summary
The statement in paragraph 1 of the Executive Summary states that “… worse the timber felled by PT Prasetya Mitra Muda (PT PMM) is labeled a legal certificate through the Timber Legality Certification System (SVLK) scheme. This took place without regard to reports that were repeatedly submitted by JPIK and EIA to the Government, authorities and certification bodies for a period of two years. ”
The statement in paragraph 3 of the Executive Summary states that “Some industries in this illegal timber village and in the surrounding areas have been legally certified through the SVLK scheme by the same certification body that allowed criminal acts when giving legal markings on PT PMM’s wood.”
When the JPIK report submitted through the SVLK system prevented some illegal timber from coming out of the Malacca Bereng as certified wood and even some certificates were frozen and revoked, but still timber from illegal oil palm concessions was actually considered legal timber. Moreover, the sawmill industry that processes the illegal logs also continues to get a legal certificate. More and more sawmills have ignored the SVLK. ”
From the series of sentences above, according to JPIK, in its report, PT IMS has allowed criminal acts to provide a legal stamp on PT PMM’s wood. Moreover, the sawmill industry that processes the illegal logs also continues to get a legal certificate.
Correct data, as long as the PT PMM certificate is valid (SLK-IMS-147 published on April 15, 2016 until revoked on April 14, 2017) PT IMS has never received a complaint of incompatibility with VLK standards due to PT PMM’s operations from JPIK and EIA In fact, we also never received complaints from the District Forest Service, the community or other stakeholders due to the activities carried out by PT PMM.PT IMS never once received a report / objection submitted by JPIK to PT PMM’s operational activities (How can it be called “ignorance?”).PT IMS only received complaints about the operational activities of TPT UD Usaha Baru Maju and IUIPHHK Juita starting in April 2017. Against these complaints we did not ignore it at all. The correspondence process (fully documented) shows that the handling of the complaint is being processed in accordance with Annex 5 of Perdirjen PHPL number: P.14 / PHPL / SET / 4/2016 and the Quality Guidelines for PT Inti Multima LVLK Certification.The last correspondence with JPIK was carried out in early June 2017. The correspondence document clearly contained information on the handling of complaints by PT IMS on the activities of IUIPHHK Juita and TPT UD Usaha Baru Maju. We have also copied the correspondence to the parties: Director of Processing and Marketing of Forest Products, Directorate General of Sustainable Production Forest Management, KLHK; Director of National Accreditation Committee Certification Accreditation; JPIK Central Kalimantan Focal Point, besides that personal correspondence is sent via email to: Donny Purnomo <donny@bsn.go.id>, Awan Taufani <awantaufani@bsn.go.id>, KAN Secretariat <kan.produk@gmail.com >, Director of PPHH <rufiie@yahoo.com.au>,Head of Sub-Directorate of Import Notification <marianalubis1962@gmail.com>, JPIK National Dynamics Coordinator – M Kosar <mkosar.jpik@gmail.com>. In 2014 JPIK and EIA published a report entitled LICENSING FOR CRIMINAL ACTS: How Oil Palm Expansion Encourages Illegal Logging in Indonesia (http://jpik.or.id/wp-content/uploads/2014/12/Permitting-Crime -Indonesia-language-version.pdf). The contents of the report focus on the PT PMM licensing process that has done or been involved in a series of violations in the establishment of oil palm plantations such as: operating in a forest area before a Forest Zone Release Permit was issued, obtaining an IUP before the AMDAL, done timber harvesting before having a Timber Utilization Permit .In 2016 JPIK conducted follow-up monitoring of PT PMM and discovered how the company which had been involved in a number of violations since 2013 received the Timber Legality Certificate in 2016 regardless of the company’s background. Monitoring focuses on the flow of distribution of logs originating from PT PMM to a number of sawmill industries that are nearby. Report entitled STILL LICENSING FOR CRIMINAL ACTS: How Illegal Illegal Palm Oil Companies Destroy Reform of the Timber Industry in Indonesia was launched in June 2017.

Since 2015, JPIK has reported findings related to PT PMM violations to the Directorate General of Law Enforcement of the Ministry of Environment and Forestry[1], Police[2], and other relevant institutions which have been investigating and handling these cases.

In October 2016, JPIK had filed a complaint with PT IMS regarding the publication of 6 (six) companies audited / verified by PT IMS where one of them was PT PMM which had no public resume assessment results since April 2016. Obligation to upload public resumes of assessment results arranged in PermenLHK Number 30 Year 2016 and Perdirjen PHPL Number 14 Year 2016 jo Perdirjen PHPL Number 15 Year 2016. Therefore, the obligation should be done properly without waiting for complaints from other parties, especially Independent Monitors.

The existence of public resume publications as a result of assessment (both initial assessment, surveillance and second assessment / recertification) is a crucial thing that must be provided by LVLK because it is a material as well as a guide for Independent Monitors in conducting monitoring to determine the suitability of the assessment results with conditions in the field.Regarding the complaints handling process carried out by PT IMS, until this report was published, follow-up handling of complaints by PT IMS could not be said in accordance with Perdirjen PHPL Number 14 of 2016 jo Perdirjen PHPL Number 15 of 2016, including:

– Handling complaints that are not in accordance with the timeline, one example of which is a complaint to UD Usaha Baru Maju and JUITA, where the last correspondence was conducted on April 26, 2017 and answered on May 16, 2017 which has passed the deadline (according to Annex 5. Perdirjen PHPL PHPL Number 14 of 2016 jo Perdirjen PHPL Number 15 of 2016, where LPPHPL or LVLK studies complaints or appeals and responds in writing to the relevance of complaints or appeals not later than 7 (seven) working days from the receipt of complaints or appeals).

– Handling complaints that are not carried out through an ad-hoc team as recommended / reminded by JPIK in the complaint letter (according to Attachment 5. Perdirjen PHPL PHPL Number 14 of 2016 jo Perdirjen PHPL Number 15 of 2016, where complaints or appeals that are declared relevant are processed by the Ad Hoc Team. Complaint Settlement or Appeal determined by LPPHPL or LVLK).Regarding the report to the Certification Body, JPIK not only filed complaints to PT IMS but also other Certification Bodies related to findings in the sawmill industry supply chain originating from PT PMM. Other Certification Bodies followed up on our complaints through special audits and had frozen and even revoked the certificates for the auditee complained by JPIK.The JPIK and EIA reports aim to encourage law enforcement actions on violations committed by PT PMM and related sawmills which should be carried out by authorized institutions, such as the Ministry of Environment and Forestry and the Police. Effective law enforcement will contribute greatly to improving forest governance and is one indicator that can show the level of accountability and credibility in the Timber Legality Verification System scheme. (SVLK).

II.  Immunity of Oil Palm Companies
Sub chapter: Certified

There are statements in the sub-chapter as follows:

… “What is amazing is not only that the government failed to enforce the law, but even the timber felled when the company was established was legalized through the SVLK scheme.

Given the large amount of available evidence regarding PT PMM’s operations, it is clear that PT IMS cannot carry out rigorous background checks let alone investigate reports of violations committed by PT PMM. There should be no SVLK certificate that can be issued, and this case is not the only certification suspect under the SVLK scheme in this area.

The Timber Legality Certificate for GPA on behalf of PT PMM issued by PT IMS on April 14, 2016, is a timber legality certificate for logged timber in the 2015/2016 land preparation area of 3000 hectares, whose issuance has gone through standard procedures according to attachment 2.4 Perdirjen PHPL number P.14 / PHPL / SET / 4/2016. The Timber Legality Certificate is valid for one year from 15 April 2016.

It is not true that PT IMS did not collect information about PT PMM activities in the area. In accordance with existing procedures and conditions, PT IMS has conducted information screening through the Public Consultation on March 28, 2016 which was attended by 15 stakeholders, including Head of Manuhing District, Gunung Mas District Forest Service, Babinsa, Village Government and community representatives.

The 2014 JPIK and EIA report entitled LICENSING FOR CRIMINAL ACTS: How Oil Palm Expansion Encourages Illegal Logging in Indonesia focuses on a series of violations that have been carried out by PT PMM since 2013, and throughout 2014 – 2015 clearing forests, obtaining a Legality Certificate Timber in 2016 (attached chronologically PT PMM case). This certainly injures the credibility of the SVLK which should be able to reduce the circulation of timber through illegal processes.

In capturing information, PT IMS is obliged to conduct public consultations before the field audit of PT PMM is carried out. PT IMS also has to collect information about PT PMM’s background which is not only sourced from public consultations. This is related to the presence of news / coverage in the mass media[3] regarding violations from / concerning PT PMM, as well as submitting a notification letter to the Independent Monitor regarding the implementation plan (schedule and timeline for conducting activities, Audit Team, accompanied by auditee brief profile information )

In addition, based on the Auditee verification request and / or announcement of the verification plan by LVLK, the Ministry can provide information related to the Auditee as consideration in the verification process. LVLK must also inform and report the audit / assessment plan to the Provincial Office in charge of Forestry, and the local BPHP and / or related SKPD, which then when PT IMS conducts field observations can test the correctness of data and information through observation, recording, quotes and traceability , and analyze using predetermined criteria and indicators to be able to see the fulfillment as stipulated in Perdirjen PHPL Number 14 of 2016 jo Perdirjen Number 15 of 2016.

If PT IMS carries out the entire assessment process carefully and adheres to the applicable rules, information about whether or not there are problems related to the performance of PT PMM can be obtained completely.

In addition, the prolonged process of prosecution by the Ministry of Environment and Forestry and the Police resulted in PT PMM obtaining a Timber Legality Certificate (S-LK) for its GPA.

III.  Compromized Certification
Compromized certification PT IMS does not compromise the results of the certification conducted. All certificates are issued through a standard audit process in accordance with Perdirjen PHPL number P.14 / PHPL / SET / 4/2016 and PT Inti Multima Certification Quality Guidelines. PT IMS also always responds to complaints submitted by JPIK.

Regarding JPIK’s complaints related to resumes that should be uploaded according to time, PT IMS after that gradually re-uploads audit announcements and resumes (according to LIU’s technical directives). So it’s not true if JPIK doesn’t find the document in question.

– UD Usaha Baru Maju (Gunung Mas Regency)

UD Usaha Baru Maju is a TPT-KB permit holder based on the Decree of the Head of Gunung Mas District Forestry Office number 522.3 / 913 / 1.02 / XI / 2015 concerning roundwood registered shelters on behalf of UD Usaha Baru Maju which is valid until November 2018. Related to UD certification Usaha Baru Maju, in April 2017 JPIK has filed a complaint with PT IMS regarding an indication that there was a sawmill activity in the UD Usaha Baru Maju area.

PT IMS followed up on JPIK’s complaint by conducting a sudden field inspection conducted on April 28, 2018, to assess the relevance of the complaints filed at the location of the KB UDTT in New Business Forward. We have submitted information on the results of the field inspection to JPIK on May 16, 2017. (We have also copied the letter and delivered it to other relevant parties as described earlier).

Until now, the handling of complaints from TPT KB UD Usaha Baru Maju is still in process according to Perdirjen P.14 / PHPL / SET / 4/2016 and internal mechanisms at PT IMS.

– UD KARYA BUDI (East Kotawaringin Regency)

UD Karya Budi is an IUIPHHK permit holder. The certificate issued to UD Karya Budi is numbered: lMS-SLK-139 published on March 31, 2016. The certificate is valid until March 30, 2019. At this time, the certificate is a freezing status, because of the unavailability of surveillance according to the time frame.

– JUITA (Gunung Mas District)

JUITA is an IUIPHHK permit holder based on the Decree of the Regent of Gunung Mas number: 503/49 / ADPER & SDA on 29 April 2011, which is valid as long as the company is still operating unless revoked by the Regent of Gunung Mas.

JUITA is the holder of the IMS-SLK-I63 Timber Legality Certificate dated May 4, 2016, and is valid until May 3, 2022. Regarding the IUIPHHK JUITA certification, JPIK has filed a complaint regarding the company’s operational activities to PT IMS starting April 20, 2017. Complaints raised regarding there is an indication of the sale of timber transport documents by JUITA IUIPHHK and the absence of regular RPBBI reporting.

Responding to the complaint, because the time almost coincided with the Surveillance of IUIPHHK JUITA activities, then in our response letter dated April 20, 2017 to JPIK, we convey that on April 25-26, 2017 Surveillance of IUIPHHK JUITA will be conducted.

During the process of surveillance and preparation of surveillance reports, correspondence in April and May 2017 we continue to do with JPIK, especially regarding indications of the sale of transportation documents and reporting of RPBBI in 2016.

At present, the IUIPHHK JUITA wood legality certificate for the IMS-SLK-163 number is freezing, because the results of the first surveillance indicate that there are discrepancies in some verifiers that JU ITA cannot fulfill according to the time frame.

So it is not true if PT IMS compromises SVLK certification.

In accordance with Perdirjen PHPL Number 14 of 2016 jo Perdirjen PHPL Number 15 of 2016 concerning Assessment Standards and Guidelines, verification is carried out on auditee documents, within the last 12 (twelve) months, using a combination of census and sampling taking into account the volume of documents. Thus, PT IMS should pay attention and also assess / examine the relationship between the patterns of relations and relations between supply chains (irregularities), especially regarding the origin / source of raw material supply of companies (sawmills) in question. In this case it is directly related to industrial raw materials sourced from PT PMM.

The background of a JPIK complaint is sent to PT IMS due to a failure to upload the resume of the assessment results. This complaint is based on the importance of the resume of the assessment results for Independent Monitoring, including in this case the resume of the assessment results for the primary forest products industry.

JPIK appreciates the efforts of PT IMS to upload the resume in stages, but it is unfortunate that PT IMS is precisely after the complaint report that JPIK submitted, not because it is indeed the obligation of PT IMS as the Certification / Verification Institution to publish the resume of assessment results in accordance with Annex 3.1 Perdirjen PHPL Number 14 of 2016 jo Perdirjen PHPL Number 15 of 2016 (point G, number 11 LPPHPL / LVLK publishes every issuance, change, suspension and revocation of S-PHPL on the LPPHPL / LVLK website and the Ministry website (www.dephut.go.id and silk. dephut.go.id) no later than 7 (seven) calendar days after the decision is made).

Regarding the complaints handling process carried out by PT IMS, until this report was published, follow-up handling of complaints by PT IMS could not be said comply with with Perdirjen PHPL Number 14 of 2016 jo Perdirjen PHPL Number 15 of 2016, including:

– Handling complaints that are not in accordance with the timeline, one example of which is a complaint to UD Usaha Baru Maju and JUITA, where the last correspondence was conducted on April 26, 2017 and answered on May 16, 2017 which has passed the deadline (according to Annex 5. Perdirjen PHPL PHPL Number 14 of 2016 jo Perdirjen PHPL Number 15 of 2016, where LPPHPL or LVLK studies complaints or appeals and responds in writing to the relevance of complaints or appeals not later than 7 (seven) working days from the receipt of complaints or appeals).

– Handling complaints that are not carried out through an ad-hoc team as reminded by JPIK in the complaint letter (according to Attachment 5. Perdirjen PHPL Number 14 of 2016 jo Perdirjen PHPL Number 15 of 2016, where complaints or appeals declared relevant are processed by the Ad Hoc Team Complaint Settlement or Appeal.

Furthermore, related to the JUITA certification which PT IMS has inspected on 27-28 April 2017, JPIK has not found the publication of the surveillance results carried out by PT IMS even after the JUITA certificate was frozen on May 23, 2017. It is the same as PT PMM. surveillance on January 22-23 2017, JPIK also did not find publication of the results of surveillance as an obligation of PT IMS as the Certification / Verification Agency. This is clearly PT IMS does not / has not implemented the procedure as stipulated in Perdirjen PHPL Number 14 of 2016 jo Perdirjen PHPL Number 15 of 2016.

IV.   Bereng Malaka,  Illegal Log City 
Industrial Location Map Kami ingin mengklarifikasi, apakah UD Karya Budi yang tercantum dalam peta tersebut adalah UD KARYA BUDI yang mendapatkan Sertifikat SVLK dari PT IMS dengan nomor: SLK-IMS-139?, karena UD KARYA BUDI pemegang SLK-IMS-139 berlokasi di Kabupaten Kotawaringin Timur. Mengenai posisi UD Karya Budi dalam peta lokasi industri, memang benar UD Karya Budi yang dimaksud adalah industri yang disertifikasi PT IMS.

Terdapat kesalahan dalam penulisan lokasi indusrti yang dimaksud.

[1]

[2]Letter of JPIK Number: 62 / NAS / JPIK / X / 15 dated October 19, 2015, and Number: 158 / NAS / JPIK / III / 2017 concerning JPIK letter to Vacuum KLHK dated March 30, 2017
[3] JPIK Kateng Letter Number: 31 / FP-KT / JPIK / III / 2015 dated March 26, 2015, and Number: 60 / FP-KT / JPIK / XI / 2015 dated November 7, 2017 regarding JPIK letters to the Police, as well as replies letter from Gunung Mas Resort Police with Number: B / 28 / XII / 2015 / Polres dated 18 December 2015
[3] https://www.merdeka.com/peristiwa/hutan-di-kalteng-digunduli-negara-rugi-ratusan-dolar-as.html
http://harianjayapos.com/detail-11480-ditengarai-ilegal-polres-gumas–selidiki-3-pbs.html
http://www.mongabay.co.id/2014/12/17/laporan-eia- revealed-kayu-kayu-ilegal-dari-kebun-sawit/
https://www.merdeka.com/peristiwa/hutan-di-kalteng-digunduli-negara-rugi-ratusan-dolar-as.html
http://www.kompasiana.com/mandausuwandi/terindikasi-ilegalitas-3-pbs-di-gumas-dipolisikan_55547d946523bda71d4aef7a
https://hutankalteng.wordpress.com/2015/07/19/empat-perkebunan-kelapa-sawit-gunung-mas-reported/

Fila JPIK answers can be downloaded via the following link:Jawaban JPIK atas Tanggapan IMS