SVLKvsVPA[Compatibility Mode] 03062010
Compatibility Assessment of
SVLK to the VPA
Preparatory for the TWG and DVC,
Yogyakarta, 3-4 June 2010
(AEN)
SVLK – Regulatory Background
• Permenhut No. P.38/Menhut-II/2009 dated on
12 June 2009,
• Perdirjen BPK No. P6/VI-Set/2009 dated on 15
June 2009,
• Perdirjen BPK No. P02/VI-BPPHH dated on 10
February 2010
VPA Processes
• Joint Statement (Menhut RI & EU Commissioners),
January 2007
• 26 Jan. 2007, the Chatham House, SecDitjen BPK (Dr.
Hadi Daryanto) made a presentation on “Preparing VPA
in Indonesia through Multi-stakeholders Process”
Indonesia stands ready to negotiate the VPA
• SOM: I-March 2007, II-June 2007
• TWG: I-April 2008, II-Dec 2009, III-March 2010, all in
Jakarta
• JEM: I-Sep 2009, II-Jan 2010, III-May 2010, all in Jakarta
5-Main Components of a VPA
1.
2.
3.
4.
5.
Definition of Timber Legality
Control of Supply Chain
Verification System
Licensing System
Independent Monitoring System
Technical Assessment of SVLK
(through the TWGs and JEMs)
1.
2.
3.
4.
5.
Legality Definition: [JEM-1] suggest to provide additional description on
administration throughout the supply chain
Control of the Supply Chain: [JEM-1 & 2] suggest additional guidance to
help operators develop timber information system (databases)
V & ER: [JEM-1 & 2, TWG-3] suggest a clearer guideline on the
compliance on legality verification once a company is certified for SFM
performance and the violation after the issuance of a certificate. [JEM-3]
the issues are very well addressed by issuing a handbill (Surat Edaran) on
VER SE.8/VI-Set/2010, 31 May 2010
FLEGT Licensing: [JEM-1 & 2] aware that this is beyond P.38. [TWG-3]
look forward to the development of the scheme that is recognized as the
FLEGT-VPA licensing system. [JEM-3] review and understand the
principles being developed by Indonesia (inspection bodies accredited to
ISO 17020)
Independent Monitoring : [JEM-1 & 2, TWG-3] understand the IM in the
context of P.38. For VPA, however a Periodic Evaluation (PE) is suggested
to make SVLK compatible with VPA, TOR is to be prepared
Compatibility of SVLK and VPA
1. Definition of Timber Legality OK. Need to summarize
P.38 and related regulations
2. Control of Supply Chain OK. Need to insert this onto
the summary of regulations
3. Verification System OK. Accredited LPVI
4. Licensing System Ideally OK, until the regulation(s) on
the conduct of inspection bodies are issued/finalized
5. Independent Monitoring System IM Indonesia OK.
Periodic Evaluation (PE) to replace IM as expected by EU is
most likely acceptable as Indonesia is also of the view and
plan to conduct multi-stakeholders evaluation (on SVLK)
to improve its credibility in the future. TOR for PE is
proposed to be developed
Challenges
Permenhut P.38: enter into effect on June 2009, shall be
implemented beginning in 1 September 2009:
• If Indonesia sets the target for the (pilot) implementation of SVLK
(including the licensing system) by 1 January 2011, the regulation
on the licensing system (revised Permendag 20) must be enacted
the latest by Sep 2010 Indonesia’s need
• Need to continue readiness of all (regulatory: cost standard,
accreditation of LPVI and ‘inspection bodies’, product coverage, etc;
capacity: management unit including the industries, auditors,
forestry officials, CSO/IM, etc) Indonesia’s need
• High compatibility of SVLK and VPA, although SVLK is NOT just for
VPA. DDR suppose to be adopted end of 2010 continue VPA
negotiation ( Indonesia and EU’s need)
What’s Next?
SVLK
• Finalize the Licensing
System conduct tech
discussion with KAN (re:
‘Inspection Bodies’),
followed with drafting
Permenhut, proposal to
revise Permendag 20/2008,
etc
VPA
• Remaining technical issue
PE in lieu of IM to be
agreed
• Prepare Ina’s counter-draft
(pending technical issues)
Focused on SVLK
(Final Proposal on the
Licensing System)
As was first discussed in Bandung
(March 11-13), reported in Yogyakarta
(March 19-20), and finalized in
Mercure Hotel, Ancol, 15-16 April 2010
Definition
• Licensing Scheme in Indonesian context:
procedure/protocol on the issuance of “logo”
(shape, size, color, placement etc) for the purpose
of “PHPL/LK” verication
• “Verification” is an activity to issue a document
(that a shipment come from sustained/legal
source) by filling (standardized) form/document
• “Verification” as a replacement of the old
“endorsement” (by BRIK) ensure a better
governance
The (Proposed) Licensing Scheme
• For Industries who have not have Legality Certificate
(LK): Verification by BRIK (until its termination) or
independent inspection bodies accredited to ISO/IEC
17020
• For Industries with “brown” or “red” LK Certificate:
Verification by inspection bodies accredited to ISO/IEC
17020
• For Industries who have “green”, “blue” or “yellow” LK
Certificate: Self-verification (replacement of the term
“self-endorsement” as was introduced by Permenhut
P.38) provided that the said industries have their own
“internal” units accredited to ISO/IEC 17020
Focused on VPA
Prepare TWG-4 (21-22 June 2010)
and DVC (14 June 2010)
FGD led by DEPLU,
Mercure Hotel, Ancol,
17-18 May 2010
Generic VPA Text
•
•
•
•
•
•
•
•
•
•
•
•
Preamble
Article 1 Objective
Article 2 Definitions
Article 3 FLEGT Licensing Scheme
Article 4 Licensing Authority
Article 5 EU Competent Authorities
Article 6 FLEGT Licenses
Article 7 Definition of Legally Produced Timber
Article 8 Verification of Legally Produced Timber
Article 9 Consultations on Validity of Licenses
Article 10 Third Party Monitoring
Article 11 Independent Market Monitor
Generic VPA Text (Cont’d)
• Article 12 Irregularities
• Article 13 Date of Operation of the FLEGT Licensing Scheme
• Article 14 Application of FLEGT Licensing Scheme to Timber
Products Manufactured from Timber Imported into Indonesia
• Article 15 Schedule for Implementation of the Agreement
• Article 16 Supporting Measures
• Article 17 Stakeholder Involvement in the Implementation of the
Agreement
• Article 18 Social Safeguards
• Article 19 Market Incentives
• Article 20 Joint Implementation Committee
• Article 21 Reporting and Public Disclosure
Generic VPA Text (Cont’d)
•
•
•
•
•
•
•
•
•
•
•
•
•
Article 22 Communication on Implementation of the Agreement
Article 23 Confidential Information
Article 24 Territorial Application
Article 25 Settlement of Disputes
Article 24 Territorial Application
Article 25 Settlement of Disputes
Article 26 Suspension
Article 27 Amendments
Article 28 Duration and Extension
Article 29 Termination
Article 30 Annexes
Article 31 Authentic Texts
Article 32 Entry into force
Generic List of VPA Annexes
• Annex IA Products Covered by the FLEGT Licensing Scheme
• Annex IB Products not covered by the FLEGT Licensing Scheme
• Annex II Legislation to Be Taken Into Account in Determining the Legality
of a Shipment of Timber, documentation to be used as proof of
compliance, and forest policy and legislative reform aspiration
• Annex III Community Importation procedures including verification of
Licenses
• Annex IV FLEGT License Specifications
• Annex V Legality Assurance Scheme, including the procedure for issuing
FLEGT Licenses (wood tracking system, verification, licensing and
independent monitoring)
• Annex VI Terms of Reference for Independent Monitoring
• Annex VII Criteria for assessment of the Legality Assurance Scheme
• Annex VIII Schedule for Implementation of the Agreement
• Annex IX Supporting Measures for VPA Implementation
Deplu’s Observation of Draft VPA Text
• An agreement consists of legal and technical
(substantial) components
• In terms of its legal aspect, the VPA has no significant
problem. Some improvements are, however, suggested
• Technically, the VPA needs to be supported with
sufficient domestic regulatory measures and well
coordinated with other sector (interdepartmental
consultation) and stakeholders
• The FGD produces counter draft ( “Bahasa
Indonesia” version is to be prepared to help
understand each and every detail of the VPA)
Final Update/Suggestion
• DVC (June 14) to adopt the results from JEM-3
(PE and its TOR development by Ina/EU experts)
and to seek clarifications over articles of the VPA
legal text (and annexes preparation by Ina/EU
expert). Not to discuss and agree the language
• TWG-4, Brussels (21-22 June 2010) to start
discussing (and possibly agreeing) the format and
detail articles of the VPA for further approval by
the SOM
Thank You – Terima Kasih
SVLK to the VPA
Preparatory for the TWG and DVC,
Yogyakarta, 3-4 June 2010
(AEN)
SVLK – Regulatory Background
• Permenhut No. P.38/Menhut-II/2009 dated on
12 June 2009,
• Perdirjen BPK No. P6/VI-Set/2009 dated on 15
June 2009,
• Perdirjen BPK No. P02/VI-BPPHH dated on 10
February 2010
VPA Processes
• Joint Statement (Menhut RI & EU Commissioners),
January 2007
• 26 Jan. 2007, the Chatham House, SecDitjen BPK (Dr.
Hadi Daryanto) made a presentation on “Preparing VPA
in Indonesia through Multi-stakeholders Process”
Indonesia stands ready to negotiate the VPA
• SOM: I-March 2007, II-June 2007
• TWG: I-April 2008, II-Dec 2009, III-March 2010, all in
Jakarta
• JEM: I-Sep 2009, II-Jan 2010, III-May 2010, all in Jakarta
5-Main Components of a VPA
1.
2.
3.
4.
5.
Definition of Timber Legality
Control of Supply Chain
Verification System
Licensing System
Independent Monitoring System
Technical Assessment of SVLK
(through the TWGs and JEMs)
1.
2.
3.
4.
5.
Legality Definition: [JEM-1] suggest to provide additional description on
administration throughout the supply chain
Control of the Supply Chain: [JEM-1 & 2] suggest additional guidance to
help operators develop timber information system (databases)
V & ER: [JEM-1 & 2, TWG-3] suggest a clearer guideline on the
compliance on legality verification once a company is certified for SFM
performance and the violation after the issuance of a certificate. [JEM-3]
the issues are very well addressed by issuing a handbill (Surat Edaran) on
VER SE.8/VI-Set/2010, 31 May 2010
FLEGT Licensing: [JEM-1 & 2] aware that this is beyond P.38. [TWG-3]
look forward to the development of the scheme that is recognized as the
FLEGT-VPA licensing system. [JEM-3] review and understand the
principles being developed by Indonesia (inspection bodies accredited to
ISO 17020)
Independent Monitoring : [JEM-1 & 2, TWG-3] understand the IM in the
context of P.38. For VPA, however a Periodic Evaluation (PE) is suggested
to make SVLK compatible with VPA, TOR is to be prepared
Compatibility of SVLK and VPA
1. Definition of Timber Legality OK. Need to summarize
P.38 and related regulations
2. Control of Supply Chain OK. Need to insert this onto
the summary of regulations
3. Verification System OK. Accredited LPVI
4. Licensing System Ideally OK, until the regulation(s) on
the conduct of inspection bodies are issued/finalized
5. Independent Monitoring System IM Indonesia OK.
Periodic Evaluation (PE) to replace IM as expected by EU is
most likely acceptable as Indonesia is also of the view and
plan to conduct multi-stakeholders evaluation (on SVLK)
to improve its credibility in the future. TOR for PE is
proposed to be developed
Challenges
Permenhut P.38: enter into effect on June 2009, shall be
implemented beginning in 1 September 2009:
• If Indonesia sets the target for the (pilot) implementation of SVLK
(including the licensing system) by 1 January 2011, the regulation
on the licensing system (revised Permendag 20) must be enacted
the latest by Sep 2010 Indonesia’s need
• Need to continue readiness of all (regulatory: cost standard,
accreditation of LPVI and ‘inspection bodies’, product coverage, etc;
capacity: management unit including the industries, auditors,
forestry officials, CSO/IM, etc) Indonesia’s need
• High compatibility of SVLK and VPA, although SVLK is NOT just for
VPA. DDR suppose to be adopted end of 2010 continue VPA
negotiation ( Indonesia and EU’s need)
What’s Next?
SVLK
• Finalize the Licensing
System conduct tech
discussion with KAN (re:
‘Inspection Bodies’),
followed with drafting
Permenhut, proposal to
revise Permendag 20/2008,
etc
VPA
• Remaining technical issue
PE in lieu of IM to be
agreed
• Prepare Ina’s counter-draft
(pending technical issues)
Focused on SVLK
(Final Proposal on the
Licensing System)
As was first discussed in Bandung
(March 11-13), reported in Yogyakarta
(March 19-20), and finalized in
Mercure Hotel, Ancol, 15-16 April 2010
Definition
• Licensing Scheme in Indonesian context:
procedure/protocol on the issuance of “logo”
(shape, size, color, placement etc) for the purpose
of “PHPL/LK” verication
• “Verification” is an activity to issue a document
(that a shipment come from sustained/legal
source) by filling (standardized) form/document
• “Verification” as a replacement of the old
“endorsement” (by BRIK) ensure a better
governance
The (Proposed) Licensing Scheme
• For Industries who have not have Legality Certificate
(LK): Verification by BRIK (until its termination) or
independent inspection bodies accredited to ISO/IEC
17020
• For Industries with “brown” or “red” LK Certificate:
Verification by inspection bodies accredited to ISO/IEC
17020
• For Industries who have “green”, “blue” or “yellow” LK
Certificate: Self-verification (replacement of the term
“self-endorsement” as was introduced by Permenhut
P.38) provided that the said industries have their own
“internal” units accredited to ISO/IEC 17020
Focused on VPA
Prepare TWG-4 (21-22 June 2010)
and DVC (14 June 2010)
FGD led by DEPLU,
Mercure Hotel, Ancol,
17-18 May 2010
Generic VPA Text
•
•
•
•
•
•
•
•
•
•
•
•
Preamble
Article 1 Objective
Article 2 Definitions
Article 3 FLEGT Licensing Scheme
Article 4 Licensing Authority
Article 5 EU Competent Authorities
Article 6 FLEGT Licenses
Article 7 Definition of Legally Produced Timber
Article 8 Verification of Legally Produced Timber
Article 9 Consultations on Validity of Licenses
Article 10 Third Party Monitoring
Article 11 Independent Market Monitor
Generic VPA Text (Cont’d)
• Article 12 Irregularities
• Article 13 Date of Operation of the FLEGT Licensing Scheme
• Article 14 Application of FLEGT Licensing Scheme to Timber
Products Manufactured from Timber Imported into Indonesia
• Article 15 Schedule for Implementation of the Agreement
• Article 16 Supporting Measures
• Article 17 Stakeholder Involvement in the Implementation of the
Agreement
• Article 18 Social Safeguards
• Article 19 Market Incentives
• Article 20 Joint Implementation Committee
• Article 21 Reporting and Public Disclosure
Generic VPA Text (Cont’d)
•
•
•
•
•
•
•
•
•
•
•
•
•
Article 22 Communication on Implementation of the Agreement
Article 23 Confidential Information
Article 24 Territorial Application
Article 25 Settlement of Disputes
Article 24 Territorial Application
Article 25 Settlement of Disputes
Article 26 Suspension
Article 27 Amendments
Article 28 Duration and Extension
Article 29 Termination
Article 30 Annexes
Article 31 Authentic Texts
Article 32 Entry into force
Generic List of VPA Annexes
• Annex IA Products Covered by the FLEGT Licensing Scheme
• Annex IB Products not covered by the FLEGT Licensing Scheme
• Annex II Legislation to Be Taken Into Account in Determining the Legality
of a Shipment of Timber, documentation to be used as proof of
compliance, and forest policy and legislative reform aspiration
• Annex III Community Importation procedures including verification of
Licenses
• Annex IV FLEGT License Specifications
• Annex V Legality Assurance Scheme, including the procedure for issuing
FLEGT Licenses (wood tracking system, verification, licensing and
independent monitoring)
• Annex VI Terms of Reference for Independent Monitoring
• Annex VII Criteria for assessment of the Legality Assurance Scheme
• Annex VIII Schedule for Implementation of the Agreement
• Annex IX Supporting Measures for VPA Implementation
Deplu’s Observation of Draft VPA Text
• An agreement consists of legal and technical
(substantial) components
• In terms of its legal aspect, the VPA has no significant
problem. Some improvements are, however, suggested
• Technically, the VPA needs to be supported with
sufficient domestic regulatory measures and well
coordinated with other sector (interdepartmental
consultation) and stakeholders
• The FGD produces counter draft ( “Bahasa
Indonesia” version is to be prepared to help
understand each and every detail of the VPA)
Final Update/Suggestion
• DVC (June 14) to adopt the results from JEM-3
(PE and its TOR development by Ina/EU experts)
and to seek clarifications over articles of the VPA
legal text (and annexes preparation by Ina/EU
expert). Not to discuss and agree the language
• TWG-4, Brussels (21-22 June 2010) to start
discussing (and possibly agreeing) the format and
detail articles of the VPA for further approval by
the SOM
Thank You – Terima Kasih