FAO in Indonesia

FAO and EU reinforce support to Indonesia’s legal timber trade

(c) Association of Indonesia Pulp and Paper (APKI)
07/08/2020

 

- Six new projects will pilot innovative approaches to strengthen legality compliance

The Food and Agriculture Organization of the United Nations (FAO) has launched six new projects in support of legal timber production and trade in Indonesia.  The assistance, worth approximately USD 550 000, was made possible thanks to the European Union (EU), the Swedish International Development Cooperation Agency, and the Department for International Development of the United Kingdom, FAO’s longstanding partners in promoting sustainable and legal timber production and trade.

These new projects will allow stakeholders of the Indonesian forest sector to further pursue legality objectives established within the EU-Indonesia Voluntary Partnership Agreement (VPA), signed as part of the EU Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT). Concrete action remains critical at a time of increased pressure, and reduced oversight capacities, on forest resources amidst the ongoing global pandemic.

Legal and sustainable timber production and trade in Indonesia rests on the application of the national Timber Legality Assurance System, or System Verifikasi Legalitas Kayu (SVLK), which tracks timber products from the forest throughout the supply chain. In 2016 Indonesia became the first country in the world to issue FLEGT licenses for timber products exported to the EU.

The projects, delivered through the dedicated FAO-EU FLEGT Programme, will pilot new and innovative ways to enable Micro, Small and Medium Sized Enterprises (MSMEs) to better comply with the SVLK, and to widen the reach and effectiveness of independent forest monitoring on the ground.  

“Our partners will explore the implementation of SVLK at the district level and strengthen the role of Forest Management Units in the implementation and monitoring of the SVLK. This illustrates in practice how EU and partners are keen to minimize the burden on Indonesian operators, especially the smallest ones, while maintaining or further enhancing timber chain controls, in close collaboration with national and subnational authorities” – said Michael Bucki, Climate Change & Environment Counselor - EU Delegation to Indonesia. “The FAO-EU FLEGT Programme will also assist small-scale sawmills by developing cost-effective and commercially viable systems for tracing timber entering and exiting individual mills, in line with the requirements of the SVLK. The transparency and participative governance of the Indonesian system is already exemplary on many levels, yet it keeps improving. International trade partners pay attention. People and ecosystems benefit”.

The application of the SVLK has brought considerable economic benefits to Indonesia whilst strengthening sustainable forest management practices. Figures show that Indonesia’s timber exports have been steadily increasing since the application of the SVLK: according to the FLEGT Independent Market Monitor (IMM), in 2013, the value of Indonesia’s timber exports was USD 6 billion; in 2019, the figure was nearly double, at USD 11.6 billion, with the EU accounting for 9 percent of the market.

To sustain improvements in forest governance, the FAO-EU FLEGT Programme will continue to strengthen civil-society led independent monitoring in Indonesia: securing sustainable financing for Independent Forest Monitoring, expanding on-the-ground monitoring activities and strengthening the role of indigenous and local communities.

Building resilience

At a time of increased vulnerability due to shifting global trade patterns, continuing to support legal and sustainable use of forest resources helps ensure that forests are well managed, and the forestry sector provides more and better livelihoods opportunities in the post-COVID 19 economic recovery phase.  “FAO is proud to support Indonesia and the EU to ensure that timber legality commitments are kept and strengthened especially in the face of a global crisis” says Bruno Cammaert, FAO Forestry Officer.

Keeping upfront and maintenance costs to a minimum ensures that legal production and trade is economically attractive. To this effect, the Government of Indonesia explores ways to simplify SVLK compliance for MSMEs including subsidizing  first time audits required to obtain SVLK certification, paperless licensing, integrated information systems, and options for self-declaration and group certification.

The experience of Indonesia exemplifies how strong and sustained political will, coupled with the engagement of the private sector and civil society translate into improved forest management and trade. The results are tangible: a recent survey conducted by the Center for International Forest Research (CIFOR) confirms that the rise in the share of legal timber in export markets, as well as the increase in national timber production harvested with legally obtained permits, is directly attributable to the VPA process.

“We are pleased to continue to complement the steadfast commitment of Indonesia to legal timber production and trade, by extending further support to local stakeholders at this delicate time”, said Daphne Hewitt, FAO-EU FLEGT Programme Manager.

Since the start of Phase III in 2016, the Programme has supported 17 projects in Indonesia, amounting to approximately USD 1.8 million, primarily focusing on supporting MSMEs, strengthening SVLK implementation, and conducting independent forest monitoring.

The FAO-EU FLEGT Programme is a global demand-driven initiative that provides technical support and resources for activities that further the goals of the European Union's FLEGT Action Plan. The Programme is funded by the European Union, the Swedish International Development Cooperation Agency, and the Department for International Development of the United Kingdom. For more information, visit the FAO-EU FLEGT Programme website.