BRIK Endorsement System:
Securing Timber from Legal Sources
The International Seminar in Yokohama for Tackling Illegal Logging, 2007 II
3-4 December 2007
Presented by Jimmy Purwonegoro
Vice Chair of BRIKVISION & MISSIONSVISION: The revival of forest industry in the corridor of sustainable forest.

MISSIONS:
1. To build an understanding between the government and business
community in implementing their action program,
2. To create strong forestry industry in the field of resource base, industrial
base and market base using timber from legal sources,
3. To build a positive opinion on Indonesian forest industry in the eyes ofinternational community.

2

ACTION PROGRAM
1. Ensuring timber supply from legal sources
2. Establishment of timber industrial data base
3. Providing inputs to the government in preparing
regulations
4. Implementation of ETPIK (Registered Forestry Industrial
Products Exporters) to all forestry industries
5. Establishment of serving mechanism, monitoring, andevaluation of ETPIK
6. Others:● Efficiency and product diversification● Evaluation of regulation that burden competitiveness

3

BRIK VERIFICATION AND ENDORSEMENT SYSTEM
Concession
HolderForest Industry(Primary + Secondary)- ETPIK -Forest products
legality letter

Production Forest
SKSKB

Panel Industry
Saw Mill / Wood Working
Furniture/Handicraft
Pulp and Paper

SAL

Conversion Forest
Plantation Forest
FAKB
Crop Estate

LMKB
LMKO
SKAU

Community Forest

BRIK

FAKO

Initial

SKSKB
FAKB
FAKO
SKAU
SAL

ExportEndorsement
RequestCustomIndependent
Surveyor
PEB

4

SK 335.1/Menhut-1/2004
495.1/MPP/Kep/9/2004

Export Info.
Resource Info.
ETPIK Info.
Check Endorse
Reports

ExportEndorsement

Add
Subtract
Stock Balance

RecordBRIK Verification and Endorsement SystemP.33
P.55

MinistriesandAgencies

Based on Government Regulations (Mandatory)

WWWSample of Endorsement FormChecking Endorsement by WAP

http://wap.brikonline.com(Wireless Application Protocol)

Checking Endorsement by WAP

Checking Endorsement by WAP

Checking Endorsement by WAPINDONESIA TIMBER SUPPLY SOURCES(2004 – 2007)
Million M3

NoSource

2004

2005

2006

2007
9.10

1

Natural Production
Forest (RKT)

5.70

5.60

8.10

2

Perhutani

0.70

0.80

0.90

3

Plantation Forest (HTI)

15.60

19.24

19.00

4

Land Clearing (IPK)

n.a

16.50

15.87

5

Community Plantation

10.70

0.90

1.02

6

Agriculture Estate

7.500.01

0.44

7Import

2.00

0.47

0.50

42.20

42.80

45.01

Total

Othertimbersources are
estimated
constant

46.01

Source: Ministry of Forestry (2004 – 2006)
The timber supply sources can meet the need for forest industries such as
plywood (estimated raw materials for 2007 = 6 million m3), woodworking(4 million m3). The rest will be supplied to pulp & paper and furniture.
5

INDONESIAN EXPORT VOLUME OF PANEL
AND WOODWORKING (2004 – 2007)

M3
Product20042005

2006

2007*)

Panel

5,382,858

4,642,748

3,485,003

2,205,274

Woodworking

2,290,053

2,407,232

2,311,441

1,388,481

Source : BRIK*) Up to September 2007 (tentative)
Panel consists of HS. 4410 (particle board), HS. 4411 (fibreboard), andHS. 4412 (plywood).
6

COMPARISON BETWEENINDONESIAN PLYWOOD EXPORT AND
JAPAN PLYWOD IMPORT (M3)
EXPORT *)IMPORT **)COUNTRIESINA – JAPAN2004

2005

2006

2007***)

2004

2005

2006

2007****)

2,159,558

1,730,079

1,562,526

932,047

2,423,828

1,848,019

1,543,632

885,717

Note:*)
Source : BRIK**) Source : Japan Lumber Importer’s Association***) Up to September 2007****) Up to August 2007

The difference between export and import data is still in the range oftolerance. BRIK data based on shipment, while the import data based oncustom clearance in Japan. (An indication that BRIK data are credible).
.

7

TREND OF INDONESIAN PLYWOOD EXPORTTO JAPAN, USA, UK (M3)

Japan
USA
UK

The above figure shows that the plywood export to Japan, USA,and UK is declining.

8

JAPAN IMPORTS VOLUME OF PLYWOODFROM SELECTED COUNTRIES (2004 – 2007)

M3
JAPANORIGIN
2004200520062007*)INDONESIA

2,423,8281,848,019

1,543,632

885,717

MALAYSIA

1,995,388

2,177,180

2,579,193

1,399,932

334,116

403,186

622,247

461,575

CHINA

Source: Japan Lumber Importers’ Association*) Up to August 2007

9US IMPORTS VOLUME OF HARDWOOD PLYWOODFROM SELECTED COUNTRIES (2004 – 2007)

M3
USORIGIN
2004

2005

INDONESIA

509,311423,124

382,035

144,015

MALAYSIA

610,492

468,312512,668

180,680

1,160,343

1,432,137

2,032,986

874,410

CHINA

Source: USDA Foreign Ag. Service*) Up to June 2007

1020062007*)

UK IMPORTS VOLUME OF HARDWOOD PLYWOODFROM SELECTED COUNTRIES (2004 – 2007)
M3UK
ORIGIN200520062007*)INDONESIA

126,000

78,00029,00014,200

MALAYSIA

170,400

145,000

124,300

139,400

CHINA

101,600

191,000

217,000

241,900*) Up to August 2007

112004

FIELD INVESTIGATION

12-BRIK can carry out a random cross-check in the field to the relevant
government
agencies
over timber mutation report and otherdocument on the legality of logs transportation to ensure that thetimber is really derived from legal sources.

-Forest industries which have already been recognized as ETPIK members
are also subject to in-field inspection conducted by an integrated team of
the Ministry of Forestry, the Ministry of Industry, and the Ministry ofTrade or by an independent surveyor. Up to now, at least 2000 out of4400 ETPIK members have been verified in terms of theirlegality
aspect,production and export activities.

-(See the documentary film on BRIK Endorsement System and astatement of Inspection signed by forestry officers and BRIK staff).

-BRIK has a close collaboration with Indonesian Customs to identify
suspicious export goods. The recent investigation was conducted on 22
November 2007. The news is attached.

On 22 November 2007, Indonesian customs in cooperation with BRIK
confiscated 17 containers of ebony and 9 containers of rattan in Tanjung
Priok Port, Jakarta. Estimated value of the confiscated goods wasapproximately USD 2.4 million. Those containers were to be shipped toChina and Hongkong.
13

A STATEMENT OF INSPECTION

14

WHAT THE WORLD CAN ASSIST INDONESIATO CURB ILLEGAL LOGGING AND ILLEGAL TRADE

Report of the ITTO Technical Mission to Indonesia,Jakarta September 2001,
titled“Achieving
Sustainable Forest ManagementinIndonesia”
stipulated “Some claim that across border smugglingalone may account for about 10 million cu.m.”
TELAPAK’s disclosure on Merbau from Papua
ITTO statistics of discrepancy
To enable the Indonesia wood products competitive
as well in world market
15

THANK YOU
FOR YOUR ATTENTION

16

BRIKエンドースメントの限界
コンセッション内コンセッション外① 丸太
天然林
IUPHHK
コンセッション

② 丸太

BRIKエンドースメント

SKSKB
SKSKB

加工木材
輸出産業
林外
貯木場

FA-KB
FA-KO

木材利用権
IPK

③ 丸太

FA-KB

小径丸太

製材工場

林外
貯木場

FA-KB
人工林
IUPHHK
コンセッション

④ 丸太
小径丸太

FA-KB

林外
貯木場

FA-KB

COMBATING ILLEGAL LOGGING IN
INDONESIA
1. ILLEGAL LOGGING AND ITS ASSOCIATED TRADE HAS BEEN A
NATIONAL PROBLEMS
2. INDONESIA HAS SHOWN SERIOUSNESS IN THE EFFORTS OFELIMINATING ILLEGAL LOGGING, ESPECIALLY ILLEGAL TRADE(LOGS SMUGGLING)
3. PRESIDENT HAS DECLARED COMBATINGS ILLEGAL LOGGINGAND IT’S ASSOCIATED TRADE BY ISSUING PRESIDENTINSTRUCTION NO. 4 YEAR 2004

2LEGAL DOCUMENTS FOR LOGS OR PROCESSEDWOOD PRODUCTS ARE :1. SKSKB (LEGAL LOGS DOCUMENT)(From Forest Concession to designated place)
2. FA-KB (ROUND LOG INVOICE)(From 1st designated place to further designated place )3. FA-KO (PROCESSED WOOD PRODUCTS INVOICE )(From seller’s place to buyer’s place)
4. SKAU (CERTIFICATE OF ORIGIN)
5. SAL ( LEGAL LETTER FOR AUCTIONED LOGS AND SAWN
TIMBER )12

= ROUND LOGSLEGALITY LETTER= ROUND LOGSINVOICE

FOREST
CONCESSIONHOLDER

PRIMARY WOOD
INDUSTRIES
LOGS

IPK
( CONVERTION
FORESTS)(SMALL ROUNDLOGS)= ROUND LOGSINVOICELOGS
HTI
INDUSTRIAL
PLANTATION(SMALL ROUNDLOGS)(SMALL ROUND LOGS)LANDCLEARING( ROUND LOGS)ORIGINALGROWTHCERTIFICATE= ROUND LOGSINVOICE= ROUND LOGSINVOICE= ROUND LOGSLEGALITY LETTERCOMMUNITY
FORESTSLOGS13

Sawn Timber

Logs
Illegal exports

IllegalExports

Logs

DOMESTIC

Illegal Industry

Illegal export

Sawn
TimberPrimary Industry
Constructions
LegalExports

HouseholdConstructions

Secondary Industry
Products
Domestic

Household
MeubelComponents
Legal
Exports

HSDomestic

Legal Exports

Products

ABROADHS

Plywood

ROLE of BRIK ACCORDING
MINISTER OF TRADE’S DECREE 02/M-DAG/PER/2/2006
and DG OF FOREIGN TRADE DECREE 01/DAGLU/PER/3/2006
STIPULATED :REGULATION & IMPLEMENTATION PROCEDURES OF
ENDORSEMENT BY BRIK FOR EXPORT OF INDUSTRIAL
WOOD PRODUCTS.

DOCUMENTS TO BE ENDORSED BY BRIK ARE :1. Photocopy of SKSKB (Round log legality letter) &Photocopy of SAL (Legal letter for auctioned logs)
legalized by OFFICER OF FORESTRY DEPARTMENT
2. Photocopy of FA-KB (Round log Invoice); FA-KO (Processed WoodProducts) ; SKAU (Certificate of Origin)legalized by DESIGNATED OFFICER(s) who issued the FA-KB; FA-KO;SKAU
67