Bisnis.com, JAKARTA – Two furniture business associations differed in their views on the implementation of the Timber Legality Verification System (SVLK).

The Indonesian Furniture and Handicraft Industry Association (Asmindo) supports the SVLK in full force in 2016. In contrast, the Indonesian Furniture and Handicraft Association (Amkri) rejects the application of SVLK specifically for downstream products.

Asmindo Executive Director Lisman Sumardjani acknowledged that if the two associations were not one voice in looking at the need for the implementation of the SVLK. In fact, he said, Asmindo and Amkri still had close ties because they had the same members.

“Amkri is indeed a fragment from Asmindo. Our members are their members too, “he said in Jakarta, Monday (10/12/2015).

Asmindo itself consists of 3,000 business people, around 70% of which are small and medium industries (IKM). While Amkri claimed almost the same number of members as Asmindo.

Lisman said Asmindo supports the SVLK because the certificate opens up a wider export market especially to European Union member countries. According to him, in the next few years, more and more countries are asking for forestry industry products that are equipped with legal certificates.

“This perspective is what sets us apart. If Amkri speaks today, then Asmindo thinks far ahead. We see global trends, “he said.

Amkri Chairman Rudi Halim said that the implementation of SVLK would hamper the export target of US $ 5 billion in the next five years. During this time, the perpetrator must spend additional costs to arrange the certificate.

“This will benefit industry players in competitor countries such as China and industries from countries in the European region,” he said (Bisnis.com, 05/10/2015).

The additional costs range from Rp. 40 million to Rp. 80 million. Thus, the business actor will increase the selling price to cover the additional costs.

“If the selling price rises, buyers will not want to accept it. After all, they don’t care about the SVLK.”

The Ministry of Trade itself plans to remove SVLK obligations for 15 classifications of furniture products (Harmonized System / HS Code). This was stated in the revised draft of the Minister of Trade Regulation No. 66/2015.

Meanwhile, the regulation to be amended is a substitute for the Minister of Trade Regulation No. 12/2014 concerning Provisions on the Export of Forestry Industry Products published on August 27 and removing the validity period of the Export Declaration (DE).

Permendag No. 12/2014 previously allowed Small and Medium Industry Registered Exporters of Forestry Industry Products (IKM-ETPIK) to use DE as a temporary substitute for V-Legal documents — as proof of having an SVLK.

However, in the new DE beleid candidates and even the SVLK it is no longer mandatory for the 15 HS Code.

Source: industri.bisnis.com