JOINT MINUTES OF THE EXPERT MEETING 100909 DRAFT
EU- INDO NESIA FLEG T VPA EXPERTS MEETING
Ja ka rta , 10 Se pte m b e r 2009
Minute s o f the m e e ting
1. BAC KG RO UND: The EC a nd Indo ne sia ha ve sta rte d the ne g o tia tio n o f a FLEG T Vo lunta ry
Pa rtne rship Ag re e m e nt (VPA) in Ja nua ry 2007. Two
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Se nio r O ffic ia l Me e ting s we re
o rg a nize d in Ma rc h a nd July 2007. A Te c hnic a l Wo rking G ro up m e e ting fo llo we d in A pril
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2008. C o m m unic a tio n a nd te c hnic a l wo rk ha s b e e n o ng o ing .
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An info rm a l m e e ting , b e twe e n Indo ne sia 's Ministry o f Fo re stry a nd DG Enviro nm e nt o f the
EC , wa s o rg a nize d in Brusse ls in June 2009 to re vie w pro g re ss. During this m e e ting , the
Indo ne sia n Ministry o f Fo re stry pre se nte d pro g re ss o n the de ve lo pm e nt o f a ne w tim b e r
le g a lity ve rific a tio n syste m fo rm a lize d thro ug h the a do ptio n o f two De c re e s in June 2009.
As a fo llo w up, it wa s a g re e d tha t a n e xpe rts m e e ting b e o rg a nize d in Ja ka rta to a sse ss
the c o m pa tib ilitie s a nd po ssib le g a ps b e twe e n Indo ne sia 's ne w tim b e r le g a lity ve rific a tio n
syste m , (SVLK), a nd the g e ne ric EU e xpe c ta tio ns fo r the Tim b e r Le g a lity Assura nc e Syste m s
(TLAS).
This a sse ssm e nt is a ke y ste p in the VPA ne g o tia tio n pro c e ss. The finding s a nd c o nc lusio ns
o f the e xpe rts m e e ting will b e use d b y Indo ne sia n a nd EU o ffic ia ls to de te rm ine the
po ssib ility a nd c o nditio ns unde r whic h the VPA m a y b e c o nc lude d a nd to ide ntify a c tio ns
tha t m ig ht b e ne c e ssa ry in this re g a rd.
2.
O BJEC TIVES AND ASSESSMENT C RITERIA: The o b je c tive o f the e xpe rts m e e ting is to a sse ss
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the c o m pa tib ility b e twe e n Indo ne sia 's SVLK a nd the EU e xpe c ta tio ns fo r TLAS tha t a re
sum m a rize d b e lo w:
i.
ii.
iii.
Le g a lity de finitio n: A sta nda rd de sc rib ing the le g a l re q uire m e nts o f the FLEG T
pa rtne r c o untry tha t m ust b e c o m plie d with in o rde r fo r FLEG T lic e nse s to b e issue d.
Whe re a ppro pria te , the de finitio n sho uld e nc o m pa ss re g istra tio n o f e nte rprise s, ta x
o b lig a tio ns, a c q uisitio n o f ha rve sting rig hts, fo re st m a na g e m e nt a nd ha rve sting ,
tim b e r pro c e ssing (inc luding e nviro nm e nta l m a na g e m e nt, re spe c t o f use rig hts o f
o the rs a nd o c c upa tio na l sa fe ty a nd he a lth o f wo rke rs), tra nspo rt o f tim b e r fro m
ha rve st to po int o f e xpo rt a s we ll a s e xpo rt a nd c usto m s re g ula tio ns
C o ntro l o f the supply c ha in: The re a re c o ntro l m e c ha nism s – wo o d tra c king
syste m s, c ha in o f c usto dy syste m s – put in pla c e to e nsure a nd de m o nstra te tim b e r
e xpo rts to the EU o rig ina te s fro m le g a l so urc e s a nd no unve rifie d tim b e r ha s
e nte re d into the supply c ha in
Ve rific a tio n: Syste m a tic c he c king b y o r o n b e ha lf o f the g o ve rnm e nt tha t tim b e r is
pro duc e d in c o m plia nc e with the le g a lity de finitio n a nd the m e c ha nism s fo r
1
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c o ntro lling the supply c ha in a re e ffe c tive to e nsure tha t o nly tim b e r fro m ve rifie d
le g a l so urc e s is shippe d to the EU a nd no m ixing with o the r tim b e r ha s ta ke n pla c e .
FLEG T lic e nsing : The pa rtne r c o untry a ppo ints a lic e nsing a utho rity to issue lic e nse s
to e xpo rt c o nsig nm e nts o f tim b e r de stine d fo r the EU m a rke t. Lic e nse d pro duc ts
m ust ve rifie d to m e e t the le g a l re q uire m e nts a s o utline d in the le g a lity de finitio n,
o rig ina te fro m le g a l so urc e s a nd b e tra c e a b le thro ug ho ut the tim b e r supply c ha in.
Inde pe nde nt m o nito ring : A third pa rty a sse ssm e nt to pro vide c re dib ility to the LAS
b y inspe c ting tha t the who le syste m is wo rking a s inte nde d.
iv.
v.
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De ta ile d a sse ssm e nt c rite ria a re a nne xe d to the m inute s o f the e xpe rt m e e ting .
3. C ENTRAL ELEMENTS O F SVLK: The SVLK is de fine d b y o ne Ministe ria l Re g ula tio n a nd o ne
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Dire c to r G e ne ra l o f Fo re stry Pro duc tio n De ve lo pm e nt’s Re g ula tio ns:
•
•
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P.38/ Me nhut- II/ 2009 stipula ting institutio na l a nd o pe ra tio na l fra m e wo rk fo r
a sse ssm e nt o f pe rfo rm a nc e a nd ve rific a tio n o f tim b e r le g a lity, a nd inde pe nde nt
m o nito ring
P.6/ VI- Se t/ 2009 stipula ting sta nda rds a nd g uide line s fo r ve rific a tio n o f tim b e r
le g a lity a nd pe rfo rm a nc e in susta ina b ility p ro duc tio n fo re st m a na g e m e nt
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In line with P.6/ VI- Se t/ 2009, the le g a lity ve rific a tio n o f tim b e r is a pplie d to o pe ra tio ns in
sta te - o wne d a nd priva te ly- o wne d fo re sts a nd a t industria l pro c e ssing fa c ilitie s c o ve ring a ll
ro und lo g s a nd pro c e sse d tim b e r pro duc ts fo r do m e stic a nd e xpo rt m a rke ts. Se pa ra te
pe rfo rm a nc e sta nda rds a nd g uide line s a re de ve lo pe d fo r the fo llo wing lic e nse a nd fo re st
o wne rship type s:
•
•
•
•
•
Fo re st c o nc e ssio n rig hts within pro duc tio n fo re st zo ne s o n sta te - o wne d la nds
(IUPHHK- HA/ HPH, IUPHHK- HTI/ HPHTI, IUPHHK RE)
C o m m unity pla nta tio n fo re sts a nd c o m m unity fo re sts within pro duc tio n fo re st zo ne s
o n sta te - o wne d la nds (IUPHHK- HTR, IUPHHK- HKM)
Tim b e r utiliza tio n rig hts within no n- fo re st zo ne s o n sta te - o wne d la nds
Priva te ly- o wne d fo re sts
Upstre a m a nd do wnstre a m industry (IUIPHHK a nd A dva nc e d IUI)
The ho lde r o f tim b e r pro duc t utiliza tio n lic e nse o r tim b e r industry lic e nse sha ll c o m ply with
a ll princ iple s,
c rite ria
a nd
indic a to rs o f the
pe rfo rm a nc e
sta nda rd
a pplic a b le
to
c o m pa ny’s o pe ra tio ns. The lic e nse ho lde r o f fo re st c o nc e ssio ns sha ll ha ve a n o ffic e r
c e rtifie d to b e c o m pe te nt fo r m a na g e m e nt a nd/ o r utiliza tio n o f susta ina b le pro duc tio n
fo re st.
Inde pe nde nt Asse ssm e nt a nd Ve rific a tio n Ag e nc ie s (LP&VI) tha t a re a c c re dite d b y the
Na tio na l A c c re dita tio n C o m m itte e (KAN) e va lua te the pe rfo rm a nc e o f lic e nse ho lde rs
a g a inst the
re q uire m e nts o f a n a pplic a b le
sta nda rd. Lic e nse
ho lde rs m e e ting
the
Deleted: Lic e nse
re q uire m e nts a re issue d b y LP & VI with c o m plia nc e c e rtific a te s tha t a re va lid fo r thre e
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ye a rs. The o pe ra tio ns o f c e rtifie d lic e nse ho lde rs a re sub je c t to a nnua l surve illa nc e a udits.
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Pro vide d tha t the e ntire supply c ha in o f tim b e r is c o ve re d b y o ne o r m o re le g a lity
c e rtific a te s, the e xpo rte r is e ntitle d to de c la re (“se lf- e ndo rse ”) the le g a lity o f g o o ds fo r
fo re ig n m a rke ts. The se lf- e ndo rse m e nt is a tta c he d to a G o o ds Expo rt No tific a tio n. In the
e ve nt tha t a supply c ha in is no t ye t o r o nly pa rtia lly c o ve re d b y a le g a lity c e rtific a te ,
le g a lity e ndo rse m e nt c a n b e a c hie ve d during a tra nsitio n pe rio d thro ug h se pa ra te
sc rutiny b y the a fo re m e ntio ne d ve rific a tio n a g e nc y.
No n- g o ve rnm e nta l o r c ivil so c ie ty o rg a niza tio ns in the fo re st se c to r c a n inde pe nde ntly
m o nito r the ve rific a tio n o f le g a lity a nd issua nc e o f le g a lity c e rtific a te s. In the e ve nt o f
o b je c tio ns to the a sse ssm e nt re sults b y LP&VI, the inde pe nde nt m o nito rs sha ll sub m it the ir
o b je c tio n the LP o r VI c o nc e rne d. If the se ve rific a tio n a g e nc ie s a re una b le to re so lve the
o b je c tio n, the m a tte r will b e e sc a la te d to KA N fo r fina l se ttle m e nt.
4. RESULTS O F C O MPA TIBILITY ASSESSMENT: The SVLK c le a rly a ddre sse s fo ur o f the five g e ne ric
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TLAS e le m e nts, na m e ly le g a lity de finitio n, c o ntro l o f the supply c ha in, ve rific a tio n a nd
inde pe nde nt m o nito ring . Sinc e the SVLK is de ve lo pe d to e nsure le g a lity o f tim b e r fo r a ny
do m e stic a nd e xpo rt m a rke t, the issua nc e o f EU m a rke t spe c ific FLEG T lic e nse s is no t
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re g ula te d b y the syste m .
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i.
Le g a lity de finitio n:
The le g a lity sta nda rds fo r sta te - o wne d fo re sts de fine a b ro a d se t o f e c o no m ic ,
e nviro nm e nta l a nd so c ia l re q uire m e nts fo r the m a na g e m e nt a nd use o f fo re sts. It is
wo rth po inting o ut tha t the so c ia l re q uire m e nts re la te d to the rig hts o f lo c a l
c o m m unitie s a nd indig e no us pe o ple a re inc lude d in the e nviro nm e nta l princ iple s,
no ta b ly unde r Enviro nm e nta l Im p a c t A sse ssm e nt (A MDA L) a nd re spe c tive
m itig a tio n a nd m o nito ring pla ns. The rig hts o f wo rke rs, ho we ve r, a re no t a ddre sse d
in the le g a lity sta nda rds.
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Due to the fa c t tha t the g o ve rnm e nt re g ula tio ns o n fo re st m a na g e m e nt a nd
pro duc tio n o f tim b e r a re m e a nt to ste e r the use o f sta te - o wne d re so urc e s, the
sc o pe o f the le g a lity sta nda rd fo r priva te fo re sts is na rro w o nly c o ve ring c rite ria fo r
the de m o nstra tio n o f la nd o wne rship.
In o rde r to stre ng the n the o ve ra ll inte g rity o f SVLK, it is re c o m m e nde d tha t a
se pa ra te de sc riptio n o n the e xisting c o ntro l struc ture s o f g o ve rnm e nt a g e nc ie s will
b e a dde d to the do c um e nta tio n. The de sc riptio n wo uld spe c ify ho w fo re st,
e nviro nm e nta l, la b o r e tc . a dm inistra tio n a t the pro vinc ia l a nd distric t le ve ls
re g ula te s c o m pa nie s (All fo re st type s a nd industry) thro ug ho ut the supply c ha in.
ii.
C o ntro l o f the supply c ha in:
The le g a lity sta nda rds fo r sta te - o wne d fo re sts a nd industry c o nta in e le m e nts
(c rite ria , indic a to rs a nd ve rifie rs) ne c e ssa ry fo r e ffic ie nt c o ntro l o f the tim b e r supply
c ha in. The sta nda rds re q uire physic a l m a rking o f ro und lo g s (Sta te o wne d fo re sts),
use a nd a rc hiving o f tra nspo rt do c um e nts a nd the im ple m e nta tio n o f syste m s b y
industria l b usine ss units to tra c e tim b e r b a c k to the fo re st. Ho we ve r, m o re spe c ific
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g uide line s wo uld a llo w fa ste r upta ke a nd c o m pre he nsio n b y b o th the priva te
se c to r (re q uire d to e sta b lish tra c king syste m s) a nd the wide r pub lic .
The e xpe rt te a m re c o m m e nds tha t a dditio na l g uida nc e o n b o th syste m
re q uire m e nts a nd c o ntro l m e c ha nism s b e pro vide d in the SVLK do c um e nta tio n:
•
•
•
•
•
•
iii.
Flo wc ha rt o n the c o ntro ls thro ug ho ut the e ntire supply c ha in (fro m pre ha rve sting inve nto ry to po int o f e xpo rt)
Me a ns fo r pro duc t ide ntific a tio n (lo g s, pro c e sse d pro duc ts)
Da y- to - d a y o pe ra tio na l c o ntro l (pro c e dure s d e fining re spo nsib ilitie s
m e tho ds, a nd fre q ue nc y)
C o ntro l b y the g o ve rnm e nt a g e nc ie s (pro c e dure s de fining re spo nsib ilitie s,
m e tho ds a nd fre q ue nc y)
Do c um e nts fo r re c o rding pro duc t spe c ific a tio n, tim b e r so urc e , tra nspo rt
m e a ns e tc .
Da ta ha ndling a nd a na lysis (no ta b ly da ta re c o nc ilia tio n b e twe e n sta g e s o f
the supply c ha in)
Ve rific a tio n:
Indo ne sia ha s ta ke n a n a dva nc e d a ppro a c h to ve rify the le g a lity o f priva te se c to r
c o m pa nie s; third pa rty ve rific a tio n o f e a c h individua l fo re st c o m pa ny is e xpe c te d
to pro vide a so lid b a sis fo r the SVLK im ple m e nta tio n. The ve rific a tio n a g e nc ie s will
no t issue le g a lity c e rtific a te s during the te m po ra ry a c c re dita tio n1 pe rio d until
Se pte m b e r 2010. The ve rific a tio n a g e nc ie s will fo c us o n the issua nc e o f Expo rt
Endo rse m e nts fo r e a c h e xpo rt c o nsig nm e nt, a llo wing the m to fully de ve lo p a nd te st
ro b ust ve rific a tio n pro c e dure s c o nsiste nt with a c c re dita tio n re q uire m e nts a nd
a pplic a b le to SVLK.
A c c re dita tio n c rite ria (ISO G uide 65) whic h a re c o m ple m e nte d with se c to r- spe c ific
re q uire m e nts (in c o o pe ra tio n b e twe e n Mo F a nd KAN) a re c urre ntly in pro g re ss.
The se c o uld inc lude e .g . c o m pe te nc e re q uire m e nts o f a udito rs, g uida nc e fo r
ve rifying the tim b e r supply c ha in a nd inte g ra tio n o f ne w e le m e nts in the a udit
a c tivitie s suc h a s the c o nsulta tio n o f sta ke ho lde rs (no t a ddre sse d b y ISO G uide 65)
while c o lle c ting a udit e vide nc e a nd m a king a va ila b le the a sse ssm e nt re sults to the
g e ne ra l pub lic .
In a dditio n, it ha s b e e n a c kno wle dg e d tha t the sta ke ho lde rs wo uld ne e d furthe r
info rm a tio n o n the a c c re dita tio n a nd ve rific a tio n (a uditing & c e rtific a tio n)
pro c e sse s. Mo F a nd KAN ha ve a lre a dy e xpre sse d the ir inte re st to pro duc e suc h a n
info rm a tio n pa c ka g e .
1 KAN ha s te mp o ra rily a c c re d ite d a ll Ind e p e nd e nt Asse ssme nt a nd Ve rific a tio n Ag e nc ie s (LP & VI)
witho ut a sse ssing the ir imp a rtia lity, c o m p e te nc e a nd a ud it p ro c e d ure s. The LPI (Ind e p e nd e nt
Asse ssme nt Bo d ie s) we re p re vio usly a sse sse d a nd a p p o inte d b y the Ministry o f Fo re stry, while BRIK wa s
a p p o inte d thro ug h thre e jo int Ministe ria l De c re e s. The fo rma l a c c re d ita tio n a sse ssme nts a re sc he d ule d
to ta ke p la c e b e fo re Se p te mb e r 2010 fo llo wing a tra nsitio na l p e rio d ; 3 mo nth g a p a sse ssme nt p ro c e ss
b y KAN a nd 9 mo nth p re p a ra to ry p e rio d b y the LP & VI.
4
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Ministe ria l De c re e (P.38/ Me nhut- II/ 2009) Artic le 4 c le a rly stipula te s tha t a fo re st
utiliza tio n lic e nse ho ld e r with a n SFM c e rtific a te do e s no t ne e d a TL c e rtific a te . The
e xpe rt te a m re c o m m e nds tha t a ltho ug h a n a sse ssm e nt a pplic a nt c a n m e e t the
hig he r susta ina b ility sta nda rd, the c o re le g a lity e le m e nts o f the SVLK sho uld a lso b e
ve rifie d fo r c o m plia nc e in the pro c e ss.
Ministe ria l De c re e (P.38/ Me nhut- II/ 2009) c urre ntly c o ve rs sta te o wne d fo re st
m a na g e d b y the c o m m unity, na m e ly; IUPHHK- HTR a nd IUPHHK- HKM. The e xpe rt
te a m sug g e sts tha t a ll sta te o wne d fo re st m a na g e d b y the c o m m unity a re inc lude d
in the sc o pe o f the SVLK, suc h a s Huta n De sa (Villa g e Fo re sts) stipula te d in
Ministe ria l De c re e (P.49/ Me nhut- II/ 2008).
iv.
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FLEG T lic e nsing :
FLEG T lic e nsing is no t a ddre sse d in the SVLK do c um e nta tio n a s SVLK is no t o nly
de sig ne d fo r the EU Ma rke t. Fo r the ne e ds o f a FLEG T lic e nsing sc he m e the re is a
ne e d to a ppo int a c o m pe te nt a utho rity to issue the lic e nse s. The FLEG T lic e nsing
a utho rity wo uld ha ve ro b ust pro c e dure s in pla c e to e nsure tha t o nly le g a lly
pro duc e d tim b e r is issue d with FLEG T lic e nse s.
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Within the SVLK, the le g a lity o f tim b e r is de m o nstra te d thro ug h third- pa rty ve rifie d
inte rna l c o ntro l syste m s o f the c o m pa nie s. While de ve lo ping the FLEG T lic e nsing
pro c e dure s, spe c ia l a tte ntio n sho uld b e pa id to m e c ha nism s c o nc e rning ho w the
e xpo rte rs de m o nstra te pro o f o f the pro duc ts’ le g a lity to the FLEG T lic e nsing
a utho rity tha t is ta ske d to issue FLEG T lic e nse s b y e xpo rt c o nsig nm e nts.
v.
Inde pe nde nt m o nito ring :
SVLK pro vide s a fo rm a l c ha nne l fo r the NG O s a nd c ivil so c ie ty to m a ke o b je c tio ns
to the re sults o f the le g a lity ve rific a tio n. This struc ture c le a rly e nha nc e s the syste m ’s
tra nspa re nc y.
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In a dditio n, it wo uld b e im pe ra tive to b uild a third pa rty m o nito ring struc ture tha t
syste m a tic a lly a nd o b je c tive ly e xa m ine s the im ple m e nta tio n o f the SVLK syste m .
The e xpe rt te a m sug g e sts tha t in the pro c e ss o f a ppo inting a third pa rty m o nito r;
Te rm s o f Re fe re nc e a re pre pa re d fo r the third pa rty m o nito r to spe c ify the
c o m pe te nc e re q uire m e nts o f the m o nito r, sc o pe o f m o nito ring a nd re po rting
re q uire m e nts, a nd o utline the m o nito ring m e tho do lo g y.
5. SYSTEM IMPLEMENTATIO N AND C A PAC ITY BUILDING : The e xpe rt te a m e m pha size s tha t a ll
g o ve rnm e nt institutio ns,
priva te
se c to r a c to rs
(fo re st
c o m pa nie s
a nd
ve rific a tio n
a g e nc ie s), a nd c ivil so c ie ty invo lve d in the im ple m e nta tio n o f SVLK sha ll ha ve a de q ua te
hum a n a nd o the r re so urc e s a nd ne c e ssa ry te c hnic a l skills to fulfill the ir re spo nsib ilitie s. The
Fo re stry Tra ining Ag e nc y (PUSDIKLA T) is in the pro c e sse s o f pre pa ring a C a pa c ity Building
Pro g ra m m e .
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Ja ka rta , 10 Se pte m b e r 2009
Minute s o f the m e e ting
1. BAC KG RO UND: The EC a nd Indo ne sia ha ve sta rte d the ne g o tia tio n o f a FLEG T Vo lunta ry
Pa rtne rship Ag re e m e nt (VPA) in Ja nua ry 2007. Two
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Se nio r O ffic ia l Me e ting s we re
o rg a nize d in Ma rc h a nd July 2007. A Te c hnic a l Wo rking G ro up m e e ting fo llo we d in A pril
Deleted:
2008. C o m m unic a tio n a nd te c hnic a l wo rk ha s b e e n o ng o ing .
Formatted: Font: Bold
An info rm a l m e e ting , b e twe e n Indo ne sia 's Ministry o f Fo re stry a nd DG Enviro nm e nt o f the
EC , wa s o rg a nize d in Brusse ls in June 2009 to re vie w pro g re ss. During this m e e ting , the
Indo ne sia n Ministry o f Fo re stry pre se nte d pro g re ss o n the de ve lo pm e nt o f a ne w tim b e r
le g a lity ve rific a tio n syste m fo rm a lize d thro ug h the a do ptio n o f two De c re e s in June 2009.
As a fo llo w up, it wa s a g re e d tha t a n e xpe rts m e e ting b e o rg a nize d in Ja ka rta to a sse ss
the c o m pa tib ilitie s a nd po ssib le g a ps b e twe e n Indo ne sia 's ne w tim b e r le g a lity ve rific a tio n
syste m , (SVLK), a nd the g e ne ric EU e xpe c ta tio ns fo r the Tim b e r Le g a lity Assura nc e Syste m s
(TLAS).
This a sse ssm e nt is a ke y ste p in the VPA ne g o tia tio n pro c e ss. The finding s a nd c o nc lusio ns
o f the e xpe rts m e e ting will b e use d b y Indo ne sia n a nd EU o ffic ia ls to de te rm ine the
po ssib ility a nd c o nditio ns unde r whic h the VPA m a y b e c o nc lude d a nd to ide ntify a c tio ns
tha t m ig ht b e ne c e ssa ry in this re g a rd.
2.
O BJEC TIVES AND ASSESSMENT C RITERIA: The o b je c tive o f the e xpe rts m e e ting is to a sse ss
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the c o m pa tib ility b e twe e n Indo ne sia 's SVLK a nd the EU e xpe c ta tio ns fo r TLAS tha t a re
sum m a rize d b e lo w:
i.
ii.
iii.
Le g a lity de finitio n: A sta nda rd de sc rib ing the le g a l re q uire m e nts o f the FLEG T
pa rtne r c o untry tha t m ust b e c o m plie d with in o rde r fo r FLEG T lic e nse s to b e issue d.
Whe re a ppro pria te , the de finitio n sho uld e nc o m pa ss re g istra tio n o f e nte rprise s, ta x
o b lig a tio ns, a c q uisitio n o f ha rve sting rig hts, fo re st m a na g e m e nt a nd ha rve sting ,
tim b e r pro c e ssing (inc luding e nviro nm e nta l m a na g e m e nt, re spe c t o f use rig hts o f
o the rs a nd o c c upa tio na l sa fe ty a nd he a lth o f wo rke rs), tra nspo rt o f tim b e r fro m
ha rve st to po int o f e xpo rt a s we ll a s e xpo rt a nd c usto m s re g ula tio ns
C o ntro l o f the supply c ha in: The re a re c o ntro l m e c ha nism s – wo o d tra c king
syste m s, c ha in o f c usto dy syste m s – put in pla c e to e nsure a nd de m o nstra te tim b e r
e xpo rts to the EU o rig ina te s fro m le g a l so urc e s a nd no unve rifie d tim b e r ha s
e nte re d into the supply c ha in
Ve rific a tio n: Syste m a tic c he c king b y o r o n b e ha lf o f the g o ve rnm e nt tha t tim b e r is
pro duc e d in c o m plia nc e with the le g a lity de finitio n a nd the m e c ha nism s fo r
1
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c o ntro lling the supply c ha in a re e ffe c tive to e nsure tha t o nly tim b e r fro m ve rifie d
le g a l so urc e s is shippe d to the EU a nd no m ixing with o the r tim b e r ha s ta ke n pla c e .
FLEG T lic e nsing : The pa rtne r c o untry a ppo ints a lic e nsing a utho rity to issue lic e nse s
to e xpo rt c o nsig nm e nts o f tim b e r de stine d fo r the EU m a rke t. Lic e nse d pro duc ts
m ust ve rifie d to m e e t the le g a l re q uire m e nts a s o utline d in the le g a lity de finitio n,
o rig ina te fro m le g a l so urc e s a nd b e tra c e a b le thro ug ho ut the tim b e r supply c ha in.
Inde pe nde nt m o nito ring : A third pa rty a sse ssm e nt to pro vide c re dib ility to the LAS
b y inspe c ting tha t the who le syste m is wo rking a s inte nde d.
iv.
v.
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De ta ile d a sse ssm e nt c rite ria a re a nne xe d to the m inute s o f the e xpe rt m e e ting .
3. C ENTRAL ELEMENTS O F SVLK: The SVLK is de fine d b y o ne Ministe ria l Re g ula tio n a nd o ne
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Dire c to r G e ne ra l o f Fo re stry Pro duc tio n De ve lo pm e nt’s Re g ula tio ns:
•
•
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P.38/ Me nhut- II/ 2009 stipula ting institutio na l a nd o pe ra tio na l fra m e wo rk fo r
a sse ssm e nt o f pe rfo rm a nc e a nd ve rific a tio n o f tim b e r le g a lity, a nd inde pe nde nt
m o nito ring
P.6/ VI- Se t/ 2009 stipula ting sta nda rds a nd g uide line s fo r ve rific a tio n o f tim b e r
le g a lity a nd pe rfo rm a nc e in susta ina b ility p ro duc tio n fo re st m a na g e m e nt
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In line with P.6/ VI- Se t/ 2009, the le g a lity ve rific a tio n o f tim b e r is a pplie d to o pe ra tio ns in
sta te - o wne d a nd priva te ly- o wne d fo re sts a nd a t industria l pro c e ssing fa c ilitie s c o ve ring a ll
ro und lo g s a nd pro c e sse d tim b e r pro duc ts fo r do m e stic a nd e xpo rt m a rke ts. Se pa ra te
pe rfo rm a nc e sta nda rds a nd g uide line s a re de ve lo pe d fo r the fo llo wing lic e nse a nd fo re st
o wne rship type s:
•
•
•
•
•
Fo re st c o nc e ssio n rig hts within pro duc tio n fo re st zo ne s o n sta te - o wne d la nds
(IUPHHK- HA/ HPH, IUPHHK- HTI/ HPHTI, IUPHHK RE)
C o m m unity pla nta tio n fo re sts a nd c o m m unity fo re sts within pro duc tio n fo re st zo ne s
o n sta te - o wne d la nds (IUPHHK- HTR, IUPHHK- HKM)
Tim b e r utiliza tio n rig hts within no n- fo re st zo ne s o n sta te - o wne d la nds
Priva te ly- o wne d fo re sts
Upstre a m a nd do wnstre a m industry (IUIPHHK a nd A dva nc e d IUI)
The ho lde r o f tim b e r pro duc t utiliza tio n lic e nse o r tim b e r industry lic e nse sha ll c o m ply with
a ll princ iple s,
c rite ria
a nd
indic a to rs o f the
pe rfo rm a nc e
sta nda rd
a pplic a b le
to
c o m pa ny’s o pe ra tio ns. The lic e nse ho lde r o f fo re st c o nc e ssio ns sha ll ha ve a n o ffic e r
c e rtifie d to b e c o m pe te nt fo r m a na g e m e nt a nd/ o r utiliza tio n o f susta ina b le pro duc tio n
fo re st.
Inde pe nde nt Asse ssm e nt a nd Ve rific a tio n Ag e nc ie s (LP&VI) tha t a re a c c re dite d b y the
Na tio na l A c c re dita tio n C o m m itte e (KAN) e va lua te the pe rfo rm a nc e o f lic e nse ho lde rs
a g a inst the
re q uire m e nts o f a n a pplic a b le
sta nda rd. Lic e nse
ho lde rs m e e ting
the
Deleted: Lic e nse
re q uire m e nts a re issue d b y LP & VI with c o m plia nc e c e rtific a te s tha t a re va lid fo r thre e
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ye a rs. The o pe ra tio ns o f c e rtifie d lic e nse ho lde rs a re sub je c t to a nnua l surve illa nc e a udits.
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2
Pro vide d tha t the e ntire supply c ha in o f tim b e r is c o ve re d b y o ne o r m o re le g a lity
c e rtific a te s, the e xpo rte r is e ntitle d to de c la re (“se lf- e ndo rse ”) the le g a lity o f g o o ds fo r
fo re ig n m a rke ts. The se lf- e ndo rse m e nt is a tta c he d to a G o o ds Expo rt No tific a tio n. In the
e ve nt tha t a supply c ha in is no t ye t o r o nly pa rtia lly c o ve re d b y a le g a lity c e rtific a te ,
le g a lity e ndo rse m e nt c a n b e a c hie ve d during a tra nsitio n pe rio d thro ug h se pa ra te
sc rutiny b y the a fo re m e ntio ne d ve rific a tio n a g e nc y.
No n- g o ve rnm e nta l o r c ivil so c ie ty o rg a niza tio ns in the fo re st se c to r c a n inde pe nde ntly
m o nito r the ve rific a tio n o f le g a lity a nd issua nc e o f le g a lity c e rtific a te s. In the e ve nt o f
o b je c tio ns to the a sse ssm e nt re sults b y LP&VI, the inde pe nde nt m o nito rs sha ll sub m it the ir
o b je c tio n the LP o r VI c o nc e rne d. If the se ve rific a tio n a g e nc ie s a re una b le to re so lve the
o b je c tio n, the m a tte r will b e e sc a la te d to KA N fo r fina l se ttle m e nt.
4. RESULTS O F C O MPA TIBILITY ASSESSMENT: The SVLK c le a rly a ddre sse s fo ur o f the five g e ne ric
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TLAS e le m e nts, na m e ly le g a lity de finitio n, c o ntro l o f the supply c ha in, ve rific a tio n a nd
inde pe nde nt m o nito ring . Sinc e the SVLK is de ve lo pe d to e nsure le g a lity o f tim b e r fo r a ny
do m e stic a nd e xpo rt m a rke t, the issua nc e o f EU m a rke t spe c ific FLEG T lic e nse s is no t
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re g ula te d b y the syste m .
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i.
Le g a lity de finitio n:
The le g a lity sta nda rds fo r sta te - o wne d fo re sts de fine a b ro a d se t o f e c o no m ic ,
e nviro nm e nta l a nd so c ia l re q uire m e nts fo r the m a na g e m e nt a nd use o f fo re sts. It is
wo rth po inting o ut tha t the so c ia l re q uire m e nts re la te d to the rig hts o f lo c a l
c o m m unitie s a nd indig e no us pe o ple a re inc lude d in the e nviro nm e nta l princ iple s,
no ta b ly unde r Enviro nm e nta l Im p a c t A sse ssm e nt (A MDA L) a nd re spe c tive
m itig a tio n a nd m o nito ring pla ns. The rig hts o f wo rke rs, ho we ve r, a re no t a ddre sse d
in the le g a lity sta nda rds.
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Due to the fa c t tha t the g o ve rnm e nt re g ula tio ns o n fo re st m a na g e m e nt a nd
pro duc tio n o f tim b e r a re m e a nt to ste e r the use o f sta te - o wne d re so urc e s, the
sc o pe o f the le g a lity sta nda rd fo r priva te fo re sts is na rro w o nly c o ve ring c rite ria fo r
the de m o nstra tio n o f la nd o wne rship.
In o rde r to stre ng the n the o ve ra ll inte g rity o f SVLK, it is re c o m m e nde d tha t a
se pa ra te de sc riptio n o n the e xisting c o ntro l struc ture s o f g o ve rnm e nt a g e nc ie s will
b e a dde d to the do c um e nta tio n. The de sc riptio n wo uld spe c ify ho w fo re st,
e nviro nm e nta l, la b o r e tc . a dm inistra tio n a t the pro vinc ia l a nd distric t le ve ls
re g ula te s c o m pa nie s (All fo re st type s a nd industry) thro ug ho ut the supply c ha in.
ii.
C o ntro l o f the supply c ha in:
The le g a lity sta nda rds fo r sta te - o wne d fo re sts a nd industry c o nta in e le m e nts
(c rite ria , indic a to rs a nd ve rifie rs) ne c e ssa ry fo r e ffic ie nt c o ntro l o f the tim b e r supply
c ha in. The sta nda rds re q uire physic a l m a rking o f ro und lo g s (Sta te o wne d fo re sts),
use a nd a rc hiving o f tra nspo rt do c um e nts a nd the im ple m e nta tio n o f syste m s b y
industria l b usine ss units to tra c e tim b e r b a c k to the fo re st. Ho we ve r, m o re spe c ific
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g uide line s wo uld a llo w fa ste r upta ke a nd c o m pre he nsio n b y b o th the priva te
se c to r (re q uire d to e sta b lish tra c king syste m s) a nd the wide r pub lic .
The e xpe rt te a m re c o m m e nds tha t a dditio na l g uida nc e o n b o th syste m
re q uire m e nts a nd c o ntro l m e c ha nism s b e pro vide d in the SVLK do c um e nta tio n:
•
•
•
•
•
•
iii.
Flo wc ha rt o n the c o ntro ls thro ug ho ut the e ntire supply c ha in (fro m pre ha rve sting inve nto ry to po int o f e xpo rt)
Me a ns fo r pro duc t ide ntific a tio n (lo g s, pro c e sse d pro duc ts)
Da y- to - d a y o pe ra tio na l c o ntro l (pro c e dure s d e fining re spo nsib ilitie s
m e tho ds, a nd fre q ue nc y)
C o ntro l b y the g o ve rnm e nt a g e nc ie s (pro c e dure s de fining re spo nsib ilitie s,
m e tho ds a nd fre q ue nc y)
Do c um e nts fo r re c o rding pro duc t spe c ific a tio n, tim b e r so urc e , tra nspo rt
m e a ns e tc .
Da ta ha ndling a nd a na lysis (no ta b ly da ta re c o nc ilia tio n b e twe e n sta g e s o f
the supply c ha in)
Ve rific a tio n:
Indo ne sia ha s ta ke n a n a dva nc e d a ppro a c h to ve rify the le g a lity o f priva te se c to r
c o m pa nie s; third pa rty ve rific a tio n o f e a c h individua l fo re st c o m pa ny is e xpe c te d
to pro vide a so lid b a sis fo r the SVLK im ple m e nta tio n. The ve rific a tio n a g e nc ie s will
no t issue le g a lity c e rtific a te s during the te m po ra ry a c c re dita tio n1 pe rio d until
Se pte m b e r 2010. The ve rific a tio n a g e nc ie s will fo c us o n the issua nc e o f Expo rt
Endo rse m e nts fo r e a c h e xpo rt c o nsig nm e nt, a llo wing the m to fully de ve lo p a nd te st
ro b ust ve rific a tio n pro c e dure s c o nsiste nt with a c c re dita tio n re q uire m e nts a nd
a pplic a b le to SVLK.
A c c re dita tio n c rite ria (ISO G uide 65) whic h a re c o m ple m e nte d with se c to r- spe c ific
re q uire m e nts (in c o o pe ra tio n b e twe e n Mo F a nd KAN) a re c urre ntly in pro g re ss.
The se c o uld inc lude e .g . c o m pe te nc e re q uire m e nts o f a udito rs, g uida nc e fo r
ve rifying the tim b e r supply c ha in a nd inte g ra tio n o f ne w e le m e nts in the a udit
a c tivitie s suc h a s the c o nsulta tio n o f sta ke ho lde rs (no t a ddre sse d b y ISO G uide 65)
while c o lle c ting a udit e vide nc e a nd m a king a va ila b le the a sse ssm e nt re sults to the
g e ne ra l pub lic .
In a dditio n, it ha s b e e n a c kno wle dg e d tha t the sta ke ho lde rs wo uld ne e d furthe r
info rm a tio n o n the a c c re dita tio n a nd ve rific a tio n (a uditing & c e rtific a tio n)
pro c e sse s. Mo F a nd KAN ha ve a lre a dy e xpre sse d the ir inte re st to pro duc e suc h a n
info rm a tio n pa c ka g e .
1 KAN ha s te mp o ra rily a c c re d ite d a ll Ind e p e nd e nt Asse ssme nt a nd Ve rific a tio n Ag e nc ie s (LP & VI)
witho ut a sse ssing the ir imp a rtia lity, c o m p e te nc e a nd a ud it p ro c e d ure s. The LPI (Ind e p e nd e nt
Asse ssme nt Bo d ie s) we re p re vio usly a sse sse d a nd a p p o inte d b y the Ministry o f Fo re stry, while BRIK wa s
a p p o inte d thro ug h thre e jo int Ministe ria l De c re e s. The fo rma l a c c re d ita tio n a sse ssme nts a re sc he d ule d
to ta ke p la c e b e fo re Se p te mb e r 2010 fo llo wing a tra nsitio na l p e rio d ; 3 mo nth g a p a sse ssme nt p ro c e ss
b y KAN a nd 9 mo nth p re p a ra to ry p e rio d b y the LP & VI.
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Ministe ria l De c re e (P.38/ Me nhut- II/ 2009) Artic le 4 c le a rly stipula te s tha t a fo re st
utiliza tio n lic e nse ho ld e r with a n SFM c e rtific a te do e s no t ne e d a TL c e rtific a te . The
e xpe rt te a m re c o m m e nds tha t a ltho ug h a n a sse ssm e nt a pplic a nt c a n m e e t the
hig he r susta ina b ility sta nda rd, the c o re le g a lity e le m e nts o f the SVLK sho uld a lso b e
ve rifie d fo r c o m plia nc e in the pro c e ss.
Ministe ria l De c re e (P.38/ Me nhut- II/ 2009) c urre ntly c o ve rs sta te o wne d fo re st
m a na g e d b y the c o m m unity, na m e ly; IUPHHK- HTR a nd IUPHHK- HKM. The e xpe rt
te a m sug g e sts tha t a ll sta te o wne d fo re st m a na g e d b y the c o m m unity a re inc lude d
in the sc o pe o f the SVLK, suc h a s Huta n De sa (Villa g e Fo re sts) stipula te d in
Ministe ria l De c re e (P.49/ Me nhut- II/ 2008).
iv.
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FLEG T lic e nsing :
FLEG T lic e nsing is no t a ddre sse d in the SVLK do c um e nta tio n a s SVLK is no t o nly
de sig ne d fo r the EU Ma rke t. Fo r the ne e ds o f a FLEG T lic e nsing sc he m e the re is a
ne e d to a ppo int a c o m pe te nt a utho rity to issue the lic e nse s. The FLEG T lic e nsing
a utho rity wo uld ha ve ro b ust pro c e dure s in pla c e to e nsure tha t o nly le g a lly
pro duc e d tim b e r is issue d with FLEG T lic e nse s.
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Within the SVLK, the le g a lity o f tim b e r is de m o nstra te d thro ug h third- pa rty ve rifie d
inte rna l c o ntro l syste m s o f the c o m pa nie s. While de ve lo ping the FLEG T lic e nsing
pro c e dure s, spe c ia l a tte ntio n sho uld b e pa id to m e c ha nism s c o nc e rning ho w the
e xpo rte rs de m o nstra te pro o f o f the pro duc ts’ le g a lity to the FLEG T lic e nsing
a utho rity tha t is ta ske d to issue FLEG T lic e nse s b y e xpo rt c o nsig nm e nts.
v.
Inde pe nde nt m o nito ring :
SVLK pro vide s a fo rm a l c ha nne l fo r the NG O s a nd c ivil so c ie ty to m a ke o b je c tio ns
to the re sults o f the le g a lity ve rific a tio n. This struc ture c le a rly e nha nc e s the syste m ’s
tra nspa re nc y.
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In a dditio n, it wo uld b e im pe ra tive to b uild a third pa rty m o nito ring struc ture tha t
syste m a tic a lly a nd o b je c tive ly e xa m ine s the im ple m e nta tio n o f the SVLK syste m .
The e xpe rt te a m sug g e sts tha t in the pro c e ss o f a ppo inting a third pa rty m o nito r;
Te rm s o f Re fe re nc e a re pre pa re d fo r the third pa rty m o nito r to spe c ify the
c o m pe te nc e re q uire m e nts o f the m o nito r, sc o pe o f m o nito ring a nd re po rting
re q uire m e nts, a nd o utline the m o nito ring m e tho do lo g y.
5. SYSTEM IMPLEMENTATIO N AND C A PAC ITY BUILDING : The e xpe rt te a m e m pha size s tha t a ll
g o ve rnm e nt institutio ns,
priva te
se c to r a c to rs
(fo re st
c o m pa nie s
a nd
ve rific a tio n
a g e nc ie s), a nd c ivil so c ie ty invo lve d in the im ple m e nta tio n o f SVLK sha ll ha ve a de q ua te
hum a n a nd o the r re so urc e s a nd ne c e ssa ry te c hnic a l skills to fulfill the ir re spo nsib ilitie s. The
Fo re stry Tra ining Ag e nc y (PUSDIKLA T) is in the pro c e sse s o f pre pa ring a C a pa c ity Building
Pro g ra m m e .
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