MINISTRY OF FORESTRY REPUBLIC INDONESIASecuring Timber from Legal Sources

International Seminar in Tokyo for Tackling Illegal Logging, 2007
Tokyo, 26-27 February 2007
Presented by Dr. Hadi Daryanto
Secretary of Director General of Forest Production Development

1COMBATING ILLEGAL LOGGING IN INDONESIA

1. ILLEGAL LOGGING AND ITS ASSOCIATED TRADE HAS BEEN A
NATIONAL PROBLEMS•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SINCE THE FOREST LAW ENFORCEMENT &GOVERNANCE (FLEG) EAST ASIA MINISTERIAL CONFERENCEHELD IN BALI , INDONESIA IN SEPTEMBER 2001,
INDONESIA HAS DONE THE FOLLOWING STEPSMOU to combat illegal logging &The illegal trade inillegally logged timber & wood products
was signed on 18/April-2002 between UK & Indonesia

MOU concerning Cooperation in combatingillegal trade of Forest products
was signed on 18-December-2002
between Indonesia & China3Joint Announcement on the cooperationin combating illegal logging &The trade in illegally logged timber & wood products
between the Government of Republic of Indonesia&The Government of JapanWas signed on 24/Jun-2003

4LETTER OF INTENTBetween
THE MINISTRY OF FORESTRY OF REPUBLIC OF INDONESIAAndTHE USDA FOREST SERVICE OF UNITED STATES OF AMERICA
regarding
COOPERATION IN SUSTAINABLE FOREST MANAGEMENTWAS SIGNED IN JAKARTA ON 13th NOVEMBER 2006
ABOVE HAS BEEN FOLLOWED BYMEMORANDUM OF UNDERSTANDING (MOU)
between
THE GOVERNMENT OF REPUBLIC OF INDONESIAAndTHE UNITED STATES OF AMERICA onCOMBATING ILLEGAL LOGGING & ASSOCIATED TRADESIGNED ON 17th NOVEMBER 2006.
USDA = UNITED STATES DEPARTMENT OF AGRICULTURE5ACKNOWLEDGING THE EFFORTS BY THE EUROPEAN UNION TOCOMBAT ILLEGAL LOGGING AND ASSOCIATED TRADE UNDER THEEUROPEAN UNION FOREST LAW ENFORCEMENT,GOVERNMEANCE AND TRADE (FLEGT) ACTION PLAN WASADOPTED IN MAY 2003,INDONESIAN AND EU AGREE TO TACKLE ILLEGALLOGGING THROUGH A FLEGT PARTNERSHIP.

6•THE HON. M.S. KABAN, MINISTER OF FORESTRY INDONESIA METCOMMISSIONERS LOUIS MICHEL AND STAVROS DIMAS, RESPONSIBLEFOR DEVELOPMENT AND ENVIRONMENT, RESPECTIVELY, IN BRUSSELS
8 JANUARY 2007.

•THEY AGREED TO INITIATE FORMAL NEGOTIATIONS TOWARDSCONCLUSION OF A VOLUNTARY PARTNERSHIP AGREEMENT (VPA) ONFOREST LAW ENFORCEMENT, GOVERNANCE AND TRADE (FLEGT),WHICH WILL PROVIDE ASSURANCE THAT INDONESIAN FORESTPRODUCTS IMPORTED TO THE EU ARE VERIFIED TO BE LEGAL.

•THE AGREEMENT WILL ALSO PROVIDE FOR COOPERATION, INCLUDINGCAPACITY BUILDING, MARKET AND TECHNICAL STUDIES ANDKNOWLEDGE-SHARINGMinistry of Forestry Policy and Implemantation- ON 13 DECEMBER 2002, MOF AND MITI HAS SET UP NEW INSTITUTIONCALLED BRIK (FOREST INDUSTRY REVITALIZATION BODY). BRIK’S AIM ISTO STRENGTHEN THE CONTROL OF JOINT DECREES ISSUED BY TWOMINISTERS IN CHECKING THE LEGALITY OF THE FORESTRYPRODUCTS
DOCUMENTS AND
MAKE
ENDORSEMENT BEFOREFORESTRY PRODUCTS TO BE EXPORTED- MOU BETWEEN MOF AND PPATK (THE CENTER FOR ANALYSIS ANDREPORTING FINANCIAL TRANSACTION) TO ANALYSE MONEY LAUNDERINGLINK TO THE ILLEGAL LOGGING ACTIVITIES- SPECIAL FOREST POLICE (SPORC) IN 10 PROVINCES HAS BEEN POSTED- THE MAIN ACTIVITIES COMBATING ILLEGAL LOGGING ARE PRE-EMTIVE(e.g. P.R AND CAPACITY BUILDING TO LOCAL PEOPLE); PREVENTIVE(FOREST CONTROL AND SURVEILLANCE); AND REPRESIVE (FIELDOPERATIONAL WITH NATIONAL POLICE)

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DEVELOPMENT OF TIMBER LEGALITY STANDARD AND ITS
VERIFICATION SYSTEM- ON APRIL 4TH 2006 MOF STIPULATED DECREE NUMBER 70/MENHUT-II/2006 TO SETUP NATIONAL STEERING COMMITTEE AND MULTI STAKEHOLDER WORKINGGROUPS DECREE NUMBER 63/KUM-II/2006 FOR WOOD LEGALITY STANDARDHARMONIZATION.
- DEVELOPMENT AND HARMONIZATION OF THE LEGALITY STANDARD HAS BEENFACILITATED BY INDONESIAN ECOLABELLING INSTITUTE (LEI) TO INVOLVE MULTISTAKEHOLDERS IN INDONESIA (THE MINISTRY OF FORESTRY, BUSINESSASSOCIATION, ACADEMICIANS, CERTIFICATION BODY AND NGOs).
- THE DRAFT OF THE HARMONIZED STANDARD HAS BEEN DERIVED FROM THERESULT OF MoU UK- INDONESIA AND TFF’s DRAFT ON LEGALITY STANDARD,WHICH IS A RESULT OF COMPARATIVE STUDY FROM:1) KEURHOUT PROTOCOOL FOR THE VALIDATION OF CLAIMS OF LEGALTIMBER IN PARTICULAR WITH A VIEW ON LEGAL ORIGIN (TFF);
2) THE REQUIREMENTS FOR ‘VERIFIED LEGAL’ IN WWF’S NUSA HIJAUCONDITIONS OF PARTICIPATION (NTTA);
3) THE “OLB (ORIGINE ET LEGALITE DES BOIS) CERTIFICATION ANDCONTROL SYSTEM : ORIGIN AND LEGALITY OF TIMBER”(EUROCERTIFOR).
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RESULT OF REPRESIVE OPERATION BY FOREST POLICE MOF :• IN 2005 : 1.493 SUSPECTS;•281.491 M3 LOGS; 36.084.7 M3 SAWN TIMBER.
•HEAVY EQUIPMENT 45 UNIT; CONTAINER 179 UNIT

• IN 2006 : 423 SUSPECTS;•454.486 LOGS; 4.257.846 M3 SAWN TIMBER;•HEAVY EQUIPMENT 6 UNIT; TUG BOAT 2 UNIT; SAW MILL 3UNIT.

RESULT OF REPRESIVE ACTION BY NATIONAL POLICE :• PAPUA (2005): 186 SUSPECTS,•35.402 LOGS, 53.208.8 M3 LOGS; 329.610.18 M3 SAWN TIMBER;•HEAVY MACHINERIES 680 UNITS.

• PAPUA (2006): 315 SUSPECTS;•572.380 LOGS;•3 TUG BOATS; 41 SHIPS; 71 TRUCKS; 122 HEAVY MACHINERIES

9- On July 10th 2006 MoF ISSUED DECREE NUMBER P.51/MENHUT/2006
TO BETTER ADMINISTRATIVE WORK OF WOOD FROM PRIVATEFOREST WHICH WILL GUARANTEE THE LEGALITY OF THE LOGSHARVESTED.
- ON 29/AUGUST 2006 MINISTER OF FORESTRY ISSUED DECREE
NO. P-55/MENHUT-II/2006 TO ACHIEVE BETTER ADMINISTRATIVEWORK OF SUSTAINABLE FOREST MANAGEMENT ESPECIALLY IN
FOREST PRODUCTS DISTRIBUTION MONITORING SYSTEM, WHICHWILL GUARANTEE THE LEGALITY OF THE LOGS HARVESTED.
THE DECREE IS ALSO AS TECHNICAL GUIDELINE OF CHAIN OFCUSTODY10DECREE NO. P-55/MENHUT-II/2006
ON 29/AUGUST 2006
TO REPLACE P126, 2003
•skshh (Forest Products legality letter was used as aGeneral Term)
It covers following documents with respective legalactivities
LHC (Cruising Reports),
RKT (Annual Working Plan),
LHP (Cutting Report),SKSKB (Round Log Legality Letter),
FA (Transportation Invoice)

2. Chain of Custody is mandatory

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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CHART OF LEGAL DOCUMENTS FORLOGSFORESTCONCESSIONHOLDERorLOGS

ROUND LOGSINVOICELOGS

ROUND LOGSINVOICELAND
CLEARINGLOGSROUND LOGSLEGALITY DOCUMENTCOMMUNITY
FORESTSLOGSLOGSORIGINALGROWTH CERTIFICATE

IPK( CONVERTIONFORESTS)HTIINDUSTRIAL
PLANTATION

13= ROUND LOGSLEGALITY DOCUMENTROUND LOGSINVOICE

WOOD
INDUSTRYMILL
FACTORY

ROUND LOGSINVOICE

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 OFENDORSEMENT 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
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