Proposal for a COUNCIL DECISION on the conclusion of the Voluntary Partnership Agreement between the European Union and the Republic of Indonesia on forest law enforcement, governance and trade in timber products to the European Union
Date: 2013-06-20
Institutions: European Commission
Subjects: Indonesia, association agreement (EU), forestry legislation, governance, import (EU), surveillance concerning imports, sustainable forest management, wood product

EUROPEAN 
COMMISSION 

Brussels, 20.6.2013  
COM(2013) 433 final 

2013/0205 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Voluntary Partnership Agreement between the European Union 
and the Republic of Indonesia on forest law enforcement, governance and trade in 
timber products to the European Union  

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EXPLANATORY MEMORANDUM 
The Action Plan on Forest Law Enforcement, Governance and Trade (FLEGT)1, endorsed by 
the  Council  in  20032,  proposes  a  set  of  measures,  including  support  for  timber-producing 
countries, multilateral collaboration to tackle trade in illegal timber, support for private-sector 
initiatives, and measures to discourage investment in activities that encourage illegal logging. 
The cornerstone of the Action Plan is the establishment of FLEGT partnerships between the 
EU  and  timber-producing  countries,  aimed  at  putting  a  stop  to  illegal  logging.  In  2005  the 
Council  adopted  Regulation  (EC)  No 2173/20053  establishing  a  mechanism  to  verify  the 
legality of timber imported into the EU under the FLEGT partnerships. 

In  December  2005  the  Council  authorised  the  Commission  to  negotiate  FLEGT  partnership 
agreements with timber-producing countries4.  

The Commission entered into negotiations with Indonesia in January 2007. The Commission 
was assisted by a number of Member States, in particular the UK, which provided resources 
to  facilitate  the  process  in  Indonesia.  The  Commission  has  kept  the  Council  updated  on 
progress,  with  reports  to  the  Working  Party  on  Forests  as  well  as  to  EU  Embassies  in 
Indonesia.  

The  Agreement  addresses  all  the  elements  of  the  negotiating  directives  adopted  by  the 
Council. In particular, it establishes the framework, institutions and systems for the FLEGT 
licensing  scheme.  It  sets  out  the  framework  for  monitoring  legal  compliance  and  for 
independent  auditing  of  the  system.  These  are  set  out  in  annexes  to  the  Agreement,  which 
provide  a  detailed  description  of  the  structures  that  will  underpin  the  assurance  of  legality 
afforded by a FLEGT licence.  

The  Voluntary  Partnership  Agreement  (VPA)  focuses  on  governance  and  law  enforcement 
and,  by  means  of  the  licensing  system,  provides  the  assurance  that  Indonesia's  timber  is 
legally  produced.  It  represents  a  major  commitment  by  Indonesia  to  address  the  persistent 
problem of illegal logging. The FLEGT licence will reassure the EU market that Indonesian 
timber products are from verified legal sources. 

The  legislation  for  which  compliance  must  be  verified  has  been  identified  following  an 
extensive  stakeholder  consultation  process  within  Indonesia.  Indonesia  will  work  with  an 
independent  auditor,  which  will  provide  regular,  public  reports  on  the  effectiveness  of  the 
system. The Agreement also aims to increase transparency in the sector, including through the 
application of Freedom of Information legislation in Indonesia.  

The  Agreement  goes  beyond  the  limited  product  coverage  proposed  in  Annex  II  to 
Regulation (EC) No 2173/2005 on the FLEGT scheme and covers a wide range of exported 
timber products.  

The Agreement makes provision for import controls at the EU’s borders, as provided for in 
Regulation  (EC)  No 2173/2005  on  the  FLEGT  scheme  and  Regulation  (EC)  No 1024/2008 
laying down detailed measures for implementing it. The Agreement includes a description of 
Indonesia's  FLEGT  licence,  which  uses  the  format  prescribed  in  the  above-mentioned 
Regulation.  

The  Agreement  establishes  a  mechanism  for  dialogue  and  cooperation  with  the  EU  on  the 
FLEGT  scheme,  via  the  Joint  Implementation  Committee.  It  also  establishes  principles  of 

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4 

COM(2003) 251. 
OJ C 268, 7.11.2003, p. 1. 
OJ L 347, 30.12.2005, p. 1. 
Restricted Council document 15102/05. 

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stakeholder participation, social safeguards, accountability and transparency, and monitoring 
of and reporting on implementation of the Agreement. 

The FLEGT licensing scheme is expected to be fully operational by late 2013. The licensing 
scheme will be assessed against the criteria laid down in the Agreement before the EU begins 
accepting FLEGT licences. 

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2013/0205 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Voluntary Partnership Agreement between the European Union 
and the Republic of Indonesia on forest law enforcement, governance and trade in 
timber products to the European Union  

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
first  subparagraphs  of  Article 207(3)  and  (4),  in  conjunction  with  Article 218(6)(a)(v)  and 
218(7), thereof, 

Having regard to the proposal from the European Commission, 
Having regard to the consent of the European Parliament5, 

Whereas: 

(1) 

(2) 

In  May  2003  the  European  Commission  adopted  a  Communication  to  the  European 
Parliament  and  to  the  Council  entitled  ‘Forest  Law  Enforcement,  Governance  and 
Trade  (FLEGT):  Proposal  for  an  EU  Action  Plan’6  which  called  for  measures  to 
address illegal logging by developing voluntary partnership Agreements with timber-
producing countries. Council conclusions on that Action Plan were adopted in October 
20037 and Parliament adopted a resolution on the subject on 11 July 20058. 
In  accordance  with  Council  Decision  No  2011/EU  XXX  of  […]9,  the  Voluntary 
Partnership Agreement between the European Union and the Republic of Indonesia on 
forest  law  enforcement,  governance  and  trade  in  timber  products  to  the  European 
Union (hereinafter referred to as ‘the Agreement’) was signed on […]10, subject to its 
conclusion. 

(3) 

The Agreement should be concluded, 

HAS ADOPTED THIS DECISION: 

Article 1 

The  Agreement  between  the  European  Union  and  the  Republic  of  Indonesia  on  forest  law 
enforcement,  governance  and  trade  in  timber  products  to  the  European  Union  is  hereby 
approved on behalf of the Union.  

The text of the Agreement is attached to this Decision. 

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6 
7 
8 
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10 

OJ C […], […], p. […]. 
COM(2003) 251. 
OJ C 268, 7.11.2003, p. 1. 
OJ C 157E, 6.7.2006, p. 482. 
OJ L [...], […], p. […]; please insert the number, date and publication reference for the doc 
OJ: please insert date of signature 

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The  President  of  the  Council  shall  designate  the  person(s)  empowered  to  give,  on  behalf  of 
the Union, the notification provided for in Article 23 of the Agreement, in order to express the 
consent of the Union to be bound by the Agreement. 

Article 2 

Article 3 

The Commission shall represent the Union in the Joint Implementation Committee set up in 
accordance with Article 14 of the Agreement.  

The  Member  States  may  participate  in  meetings  of  the  Joint  Implementation  Committee  as 
members of the Union delegation.  

For the purpose of amending the annexes to the Agreement pursuant to Article 22 thereof, the 
Commission  is  authorised,  in  accordance  with  the  procedure  laid  down  in  Article 11(3)  of 
Regulation (EC) No 2173/2005, to approve any such amendments on behalf of the Union. 

Article 4 

This Decision shall enter into force on the day of its adoption.  

Article 5 

This Decision shall be published in the Official Journal of the European Union.  

Done at Brussels,  

Article 6 

For the Council 
The President 
[…] 

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ANNEX 

VOLUNTARY PARTNERSHIP AGREEMENT BETWEEN THE EUROPEAN UNION 
AND THE REPUBLIC OF INDONESIA ON FOREST LAW ENFORCEMENT, 
GOVERNANCE AND TRADE IN TIMBER PRODUCTS INTO THE EUROPEAN 
UNION 

THE EUROPEAN UNION 

hereinafter referred to as “the Union” 

and 

THE REPUBLIC OF INDONESIA 

hereinafter referred to as “Indonesia” 

hereinafter referred to together as the “Parties”, 

RECALLING  The  Framework  Agreement  on  Comprehensive  Partnership  and  Cooperation 
between the Republic of Indonesia and the European Community signed on 9 November 2009 
in Jakarta; 

CONSIDERING  the  close  working  relationship  between  the  Union  and  Indonesia, 
particularly  in  the  context  of  the  1980  Cooperation  Agreement  between  the  European 
Economic  Community  and  Indonesia,  Malaysia,  the  Philippines,  Singapore  and  Thailand  - 
member countries of the Association of South-East Asian Nations; 

RECALLING the commitment made in the Bali Declaration on Forest Law Enforcement and 
Governance  (FLEG)  of  13  September  2001  by  countries  from  the  East  Asian  and  other 
regions  to  take  immediate  action  to  intensify  national  efforts  and  to  strengthen  bilateral, 
regional and multilateral collaboration to address violations of forest law and forest crime, in 
particular illegal logging, associated illegal trade and corruption, and their negative effects on 
the rule of law; 

NOTING  the  Communication  from  the  Commission  to  the  Council  and  the  European 
Parliament on a European Union Action Plan for Forest Law Enforcement, Governance and 
Trade  (FLEGT)  as  a  first  step  towards  tackling  the  urgent  issue  of  illegal  logging  and 
associated trade; 

REFERRING  to  the  Joint  Statement  between  the  Minister  of  Forestry  of  the  Republic  of 
Indonesia and the European Commissioners for Development and for Environment signed on 
8 January 2007 in Brussels; 

HAVING REGARD to the 1992 Non-Legally Binding Authoritative Statement of Principles 
for a Global Consensus on the management, conservation and sustainable development of all 
types  of  forests,  and  to  the  adoption  by  the  United  Nations  General  Assembly  of  the  Non 
Legally Binding Instrument on all types of forest; 

AWARE of the importance of principles set out in the 1992 Rio Declaration on Environment 
and Development in the context of securing sustainable forest management, and in particular 
of  Principle  10  concerning  the  importance  of  public  awareness  and  participation  in 
environmental issues and of Principle 22 concerning the vital role of indigenous people and 
other local communities in environmental management and development; 

RECOGNISING  efforts  by  the  Government  of  the  Republic  of  Indonesia  to  promote  good 
forestry  governance,  law  enforcement  and  the  trade  in  legal  timber,  including  through  the 
Sistem  Verifikasi  Legalitas  Kayu  (SVLK)  as  the  Indonesian  Timber  Legality  Assurance 

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System  (TLAS)  which  is  developed  through  a  multi-stakeholder  process  following  the 
principles of good governance, credibility and representativeness; 

RECOGNISING that the Indonesian TLAS is designed to ensure the legal compliance of all 
timber products; 

RECOGNISING  that  implementation  of  a  FLEGT  Voluntary  Partnership  Agreement  will 
reinforce sustainable forest management and contribute to combating climate change through 
reduced  emissions  from  deforestation  and  forest  degradation  and  the  role  of  conservation, 
sustainable management of forest and enhancement of forest carbon stocks (REDD+); 

HAVING REGARD to the Convention on International Trade in Endangered Species of Wild 
Fauna  and  Flora  (CITES)  and  in  particular  the  requirement  that  export  permits  issued  by 
parties  to  CITES  for  specimens  of  species  listed  in  Appendices  I,  II  or  III  be  granted  only 
under certain conditions, including that such specimens were not obtained in contravention of 
the laws of that party for the protection of fauna and flora; 

RESOLVED that the Parties shall seek to minimise any adverse impacts on indigenous and 
local communities and poor people which may arise as a direct consequence of implementing 
this Agreement; 

CONSIDERING the importance attached by the Parties to development objectives agreed at 
international level and to the Millennium Development Goals of the United Nations; 

CONSIDERING  the  importance  attached  by  the  Parties  to  the  principles  and  rules  which 
govern the multilateral trading systems, in particular the rights and obligations laid down in 
the  General  Agreement  on  Tariffs  and  Trade  (GATT)  1994  and  in  other  multilateral 
agreements establishing the World Trade Organisation (WTO) and the need to apply them in 
a transparent and non-discriminatory manner; 

HAVING REGARD to Council Regulation (EC) No 2173/2005 of 20 December 2005 on the 
establishment  of  a  FLEGT  licensing  scheme  for  imports  of  timber  into  the  European 
Community  and  to  Regulation  (EU)  No  995/2010  of  the  European  Parliament  and  of  the 
Council of 20 October 2010 laying down the obligations of operators who place timber and 
timber products on the market; 

REAFFIRMING 
discrimination and recognising the benefits to the Parties arising from this Agreement; 

the  principles  of  mutual  respect,  sovereignty,  equality  and  non-

PURSUANT to the respective laws and regulations of the Parties; 

HEREBY AGREE AS FOLLOWS: 

Article 1 

Objective 

1. 

2. 

The objective of this Agreement, consistent with the Parties’ common commitment 
to the sustainable management of all types of forest, is to provide a legal framework 
aimed at ensuring that all imports into the Union from Indonesia of timber products 
covered by this Agreement have been legally produced and in doing so to promote 
trade in timber products. 

This  Agreement  also  provides  a  basis  for  dialogue  and  co-operation  between  the 
Parties  to  facilitate  and  promote  the  full  implementation  of  this  Agreement  and 
enhance forest law enforcement and governance. 

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Article 2 

Definitions 

For the purposes of this Agreement, the following definitions shall apply: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

‘import  into  the  Union’  means  the  release  for  free  circulation  of  timber 
products  in  the  Union  within  the  meaning  of  Article  79  of  Regulation  (EEC) 
No 2913/1992 of 12 October 1992 establishing the Union Customs Code which 
cannot be qualified as 'goods of a non-commercial nature' as defined in Article 
1(6) of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down 
provisions for the implementation of Council Regulation (EEC) No 2913/1992 
establishing the Union Customs Code; 

 ‘export’ means the physical leaving or taking out of timber products from any 
part of the geographical territory of Indonesia; 

 ‘timber products’ means the products listed in Annex IA and Annex IB; 

'HS  Code'  means  a  four-  or  six-digit  commodity  code  as  set  out  in  the 
Harmonised  Commodity  Description  and  Coding  System  established  by  the 
International  Convention  on  the  Harmonised  Commodity  Description  and 
Coding System of the World Customs Organisation; 

‘FLEGT  licence’  means  an  Indonesian  Verified  Legal  (V-Legal)  document 
which  confirms  that  a  shipment  of  timber  products  intended  for  export  to  the 
Union  has  been  legally  produced.  A  FLEGT  licence  may  be  in  paper  or 
electronic form; 

 ‘licensing  authority’  means  the  entities  authorised  by  Indonesia  to  issue  and 
validate FLEGT licences; 

‘competent authorities’ means the authorities designated by the Member States 
of the Union to receive, accept and verify FLEGT licences; 

 ‘shipment’ means a quantity of timber products covered by a FLEGT licence 
that  is  sent  by  a  consignor  or  a  shipper  from  Indonesia  and  is  presented  for 
release for free circulation at a customs office in the Union; 

(i) 

 ‘legally-produced  timber’  means  timber  products  harvested  or  imported  and 
produced in accordance with the legislation as set out in Annex II. 

Article 3 

FLEGT Licensing Scheme 

1. 

A  Forest  Law  Enforcement,  Governance  and  Trade  licensing  scheme’  (hereinafter 
‘FLEGT  Licensing  Scheme’)  is  hereby  established  between  the  Parties  to  this 
Agreement.  It  establishes  a  set  of  procedures  and  requirements  aiming  at  verifying 
and  attesting,  by  means  of  FLEGT  licences,  that  timber  products  shipped  to  the 
Union were legally produced. In accordance with Council Regulation 2173/2005 of 
20 December 2005, the Union shall only accept such shipments from Indonesia for 
import into the Union if they are covered by FLEGT licences. 

2. 

The FLEGT Licensing Scheme shall apply to the timber products listed in Annex IA. 

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3. 

4. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

The  timber  products  listed  in  Annex  1B  may  not  be  exported  from  Indonesia  and 
may not be FLEGT licensed. 

The Parties agree to take all necessary measures to implement the FLEGT Licensing 
Scheme in accordance with the provisions of this Agreement. 

Article 4 

Licensing Authorities 

The Licensing Authority will verify that timber products have been legally produced 
in  accordance  with  the  legislation  identified  in  Annex  II.  The  Licensing  Authority 
will  issue  FLEGT  licences  covering  shipments  of  legally-produced  timber  products 
for export to the Union. 

The Licensing Authority shall not issue FLEGT licences for any timber products that 
are  composed  of,  or  include,  timber  products  imported  into  Indonesia  from  a  third 
country in a form in which the laws of that third country forbid export, or for which 
there  is  evidence  that  those  timber  products  were  produced  in  contravention  of  the 
laws of the country where the trees were harvested. 

The Licensing Authority will maintain and make publicly available its procedures for 
issuing  FLEGT  licences.  The  Licensing  Authority  will  also  maintain  records  of  all 
shipments  covered  by  FLEGT  licences  and  consistent  with  national  legislation 
concerning  data  protection  will  make  these  records  available  for  the  purposes  of 
independent  monitoring,  while 
the  confidentiality  of  exporters’ 
proprietary information. 

respecting 

Indonesia shall establish a Licence Information Unit that will serve as a contact point 
for communications between the competent authorities and the Licensing Authorities 
as set out in Annexes III and V. 

Indonesia  shall  notify  contact  details  of  the  Licensing  Authority  and  the  Licence 
Information  Unit  to  the  European  Commission.  The  Parties  shall  make  this 
information available to the public. 

Article 5 

Competent Authorities 

The  competent  authorities  shall  verify  that  each  shipment  is  covered  by  a  valid 
FLEGT licence before releasing that shipment for free circulation in the Union. The 
release  of  the  shipment  may  be  suspended  and  the  shipment  detained  if  there  are 
doubts regarding the validity of the FLEGT licence.  

The  competent  authorities  shall  maintain  and  publish  annually  a  record  of  FLEGT 
licences received. 

The  competent  authorities  shall  grant  persons  or  bodies  designated  as  independent 
market monitor access to the relevant documents and data, in accordance with their 
national legislation on data protection. 

The  competent  authorities  shall  not  perform  the  action  described  in  Article  5(1)  in 
the  case  of  a  shipment  of  timber  products  derived  from  species  listed  under  the 
Appendices of the CITES as these are covered by the provisions for verification set 

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out in the Council Regulation (EC) No 338/97 of 9 December 1996 on the protection 
of species of wild fauna and flora by regulating trade therein. 

5. 

The  European  Commission  shall  notify  Indonesia  of  the  contact  details  of  the 
competent authorities. The Parties shall make this information available to the public. 

Article 6 

FLEGT Licences 

1. 

2. 

3. 

4. 

1. 

2. 

1. 

2. 

3. 

FLEGT licences shall be issued by the Licensing Authority as a means of attesting 
that timber products have been legally produced. 

The FLEGT licence shall be laid out and completed in English.  

The Parties may, by agreement, establish electronic systems for issuing, sending and 
receiving FLEGT licences. 

The technical specifications of the licence are set out in Annex IV. The procedure for 
issuing FLEGT licences is set out in Annex V. 

Article 7 

Verification of Legally-Produced Timber 

Indonesia shall implement a TLAS to verify that timber products for shipment have 
been legally produced and to ensure that only shipments verified as such are exported 
to the Union. 

The  system  for  verifying  that  shipments  of  timber  products  have  been  legally 
produced is set out in Annex V. 

Article 8 

Release of Shipments covered by a FLEGT Licence 

The  procedures  governing  release  for  free  circulation  in  the  Union  for  shipments 
covered by a FLEGT licence are described in Annex III. 

Where the competent authorities have reasonable grounds to suspect that a licence is 
not valid or authentic or does not conform to the shipment it purports to cover, the 
procedures contained in Annex III may be applied. 

Where  persistent  disagreements  or  difficulties  arise  in  consultations  concerning 
FLEGT licences the matter may be referred to the Joint Implementation Committee. 

Article 9 

Irregularities 

The  Parties  shall  inform  each  other  if  they  suspect  or  have  found  evidence  of  any 
circumvention  or  irregularity  in  the  FLEGT  Licensing  Scheme,  including  in  relation  to  the 
following: 

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(a) 

 circumvention of trade, including by re-direction of trade from Indonesia to the 
Union via a third country; 

(b)  FLEGT  licences  covering  timber  products  which  contain  timber  from  third 

countries that is suspected of being illegally produced; or 

(c) 

fraud in obtaining or using FLEGT licences. 

Article 10 

Application of the Indonesian TLAS and Other Measures 

Using the Indonesian TLAS, Indonesia shall verify the legality of timber exported to 
non-Union  markets  and  timber  sold  on  domestic  markets,  and  shall  endeavour  to 
verify  the  legality  of  imported  timber  products  using,  where  possible,  the  system 
developed for implementing this Agreement. 

In  support  of  such  endeavours,  the  Union  shall  encourage  the  use  of  the 
abovementioned system with respect to trade in other international markets and with 
third countries. 

The Union shall implement measures to prevent the placing on the Union market of 
illegally-harvested timber and products derived therefrom. 

Article 11 

Stakeholder Involvement in the Implementation of the Agreement 

Indonesia will hold regular consultations with stakeholders on the implementation of 
this  Agreement  and  will  in  that  regard  promote  appropriate  consultation  strategies, 
modalities and programmes. 

The Union  will  hold regular  consultations with stakeholders on the implementation 
of this Agreement, taking into account its obligations under the 1998 Convention on 
Access to Information, Public Participation in Decision-making and Access to Justice 
in Environmental Matters (Aarhus Convention) 

Article 12 

Social Safeguards 

In order to minimize possible adverse impacts of this Agreement, the Parties agree to 
develop a better understanding of the impacts on the timber industry as well as on the 
livelihoods of potentially affected indigenous and local communities as described in 
their respective national laws and regulations. 

The  Parties  will  monitor  the  impacts  of  this  Agreement  on  those  communities  and 
other actors identified in paragraph 1, while taking reasonable steps to mitigate any 
adverse  impacts.  The  Parties  may  agree  on  additional  measures  to  address  adverse 
impacts. 

1. 

2. 

3. 

1. 

2. 

1. 

2. 

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Article 13 

Market Incentives 

Taking  into  account  its  international  obligations,  the  Union  shall  promote  a  favourable 
position in the Union market for the timber products covered by this Agreement. Such efforts 
will include in particular measures to support: 

(a)  public and private procurement policies that recognise a supply of and ensure a 

market for legally harvested timber products; and 

(b) 

a  more  favourable  perception  of  FLEGT-licensed  products  on  the  Union 
market. 

Article 14 

Joint Implementation Committee 

1. 

2. 

3. 

4. 

The  Parties  shall  establish  a  joint  mechanism  (hereinafter  referred  to  as  the  "Joint 
Implementation  Committee"  or  "JIC"), 
the 
implementation and review of this Agreement.  

issues  relating 

to  consider 

to 

Each Party shall nominate its representatives on the JIC which shall take its decisions 
by  consensus.  The  JIC  shall  be  co-chaired  by  senior  officials;  one  from  the  Union 
and the other from Indonesia. 

The JIC shall establish its rules of procedure.  

The  JIC  shall  meet  at  least  once  a  year,  on  a  date  and  with  an  agenda  which  are 
agreed  in  advance  by  the  Parties.  Additional  meetings  may  be  convened  at  the 
request of either of the Parties. 

5. 

The JIC shall: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

consider and adopt joint measures to implement this Agreement; 

review  and  monitor  the  overall  progress  in  implementing  this  Agreement 
including  the  functioning  of  the  TLAS  and  market-related  measures,  on  the 
basis  of  the  findings  and  reports  of  the  mechanisms  established  under 
Article 15; 

assess  the  benefits  and  constraints  arising  from  the  implementation  of  this 
Agreement and decide on remedial measures; 

examine reports and complaints about the application of the FLEGT licensing 
scheme in the territory of either of the Parties; 

agree on the date from which the FLEGT licensing scheme will start operating 
after an evaluation of the functioning of the TLAS on the basis of the criteria 
set out in Annex VIII; 

identify areas of cooperation to support the implementation of this Agreement; 

establish subsidiary bodies for work requiring specific expertise, if necessary; 

(h)  prepare,  approve,  distribute,  and  make  public  annual  reports,  reports  of  its 

meetings and other documents arising out of its work. 

(i) 

perform any other tasks it may agree to carry out. 

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Article 15 

Monitoring and Evaluation 

The Parties agree to use the reports and findings of the following two mechanisms to evaluate 
the implementation and effectiveness of this Agreement. 

(a) 

(b) 

Indonesia,  in  consultation  with  the  Union,  shall  engage  the  services  of  a 
Periodic Evaluator to implement the tasks as set out in Annex VI. 

the  Union,  in  consultation  with  Indonesia,  shall  engage  the  services  of  an 
Independent Market Monitor to implement the tasks as set out in Annex VII. 

1. 

2. 

1. 

2. 

Article 16 

Supporting Measures 

The provision of any resources necessary for measures to support the implementation 
of this Agreement, identified pursuant to Article 14(5) (f) above shall be determined 
in the context of the programming exercises of the Union and its Member States for 
cooperation with Indonesia.  

The  Parties  shall  ensure  that  activities  associated  with  the  implementation  of  this 
Agreement  are  coordinated  with  existing  and  future  development  programmes  and 
initiatives.  

Article 17 

Reporting and Public Disclosure of Information 

The Parties shall ensure that the workings of the JIC are as transparent as possible. 
Reports arising out of its work shall be jointly prepared and made public.  

The JIC shall make public a yearly report that includes inter alia, details on: 

(a)  quantities of timber products exported to the Union under the FLEGT licensing 

scheme, according to the relevant HS Heading; 

(b) 

the number of FLEGT licences issued by Indonesia; 

(c)  progress in achieving the objectives of this Agreement and matters relating to 

its implementation; 

(d) 

actions to prevent illegally-produced timber products being exported, imported, 
and placed or traded on the domestic market; 

(e)  quantities  of  timber  and  timber  products  imported  into  Indonesia  and  actions 
taken to prevent imports of illegally-produced timber products and maintain the 
integrity of the FLEGT Licensing Scheme; 

(f) 

cases  of  non-compliance  with  the  FLEGT  Licensing  Scheme  and  the  action 
taken to deal with them; 

(g)  quantities  of  timber  products  imported  into  the  Union  under  the  FLEGT 
licensing  scheme,  according  to  the  relevant  HS  Heading  and  Union  Member 
State in which importation into the Union took place; 

EN 

13 

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(h) 

(i) 

the number of FLEGT licences received by the Union; 

the  number  of  cases  and  quantities  of  timber  products  involved  where 
consultations took place under Article 8(2). 

In  order  to  achieve  the  objective  of  improved  governance  and  transparency  in  the 
forest  sector  and  to  monitor  the  implementation  and  impacts  of  this  Agreement  in 
both Indonesia and the Union, the Parties agree that the information as described in 
Annex IX shall be made publicly available. 

The  Parties  agree  not  to  disclose  confidential  information  exchanged  under  this 
Agreement,  in  accordance  with  their  respective  legislation.  Neither  Party  shall 
disclose  to  the  public,  nor  permit  its  authorities  to  disclose,  information  exchanged 
under 
trade  secrets  or  confidential  commercial 
information. 

this  Agreement  concerning 

Article 18 

Communication on Implementation 

The representatives of the Parties responsible for official communications concerning 
implementation of this Agreement shall be: 

For Indonesia: 

For the Union: 

The Director-General of Forest 
Utilisation, Ministry for Forestry 

The Head of Delegation 
of the European Union in Indonesia 

The  Parties  shall  communicate  to  each  other  in  a  timely  manner  the  information 
necessary for implementing this Agreement, including changes in paragraph 1 

3. 

4. 

1. 

2. 

Article 19 

Territorial Application 

This  Agreement  shall  apply  to  the  territory  in  which  the  Treaty  on  the  Functioning  of  the 
European Union is applied under the conditions laid down in that Treaty, on the one hand, and 
to the territory of Indonesia, on the other. 

Article 20 

Settlement of Disputes 

1. 

2. 

3. 

The  Parties  shall  seek  to  resolve  any  dispute  concerning  the  application  or 
interpretation of this Agreement through prompt consultations. 

If a dispute has not been settled by means of consultations within two months from 
the date of the initial request for consultations either Party may refer the dispute to 
the JIC which shall endeavour to settle it. The JIC shall be provided with all relevant 
information  for  an  in  depth  examination  of  the  situation  with  a  view  to  finding  an 
acceptable solution. To this end, the JIC shall be required to examine all possibilities 
for maintaining the effective implementation of this Agreement. 

In the event that the JIC is unable to settle the dispute within two months, the Parties 
may jointly seek the good offices of, or request mediation by, a third party. 

EN 

14 

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4. 

5. 

6. 

7. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

If it is not possible to settle the dispute in accordance with paragraph 3, either Party 
may  notify  the  other  of  the  appointment  of an  arbitrator;  the  other  Party  must  then 
appoint a second arbitrator within thirty calendar days of the appointment of the first 
arbitrator. The Parties shall jointly appoint a third arbitrator within two months of the 
appointment of the second arbitrator. 

The  arbitrators  decisions  shall  be  taken  by  majority  vote  within  six  months  of  the 
third arbitrator being appointed. 

The award shall be binding on the Parties and it shall be without appeal. 

The JIC shall establish the working procedures for arbitration. 

Article 21 

Suspension 

A Party wishing to suspend this Agreement shall notify the other Party in writing of 
its intention to do so. The matter shall subsequently be discussed between the Parties. 

Either  Party  may  suspend  the  application  of  this  Agreement.  The  decision  on 
suspension  and  the  reasons  for  that  decision  shall  be  notified  to  the  other  Party  in 
writing.  

The conditions of this Agreement will cease to apply thirty calendar days after such 
notice is given. 

Application of this Agreement shall resume thirty calendar days after the Party that 
has  suspended  its  application  informs  the  other  Party  that  the  reasons  for  the 
suspension no longer apply. 

Article 22 

Amendments 

Either Party wishing to amend this Agreement shall put the proposal forward at least 
three months before the next meeting of the JIC. The JIC shall discuss the proposal 
and if consensus is reached, it shall make a recommendation. If the Parties agree with 
the  recommendation,  they  shall  approve  it  in  accordance  with  their  respective 
internal procedures. 

Any amendment so approved by the Parties shall enter into force on the first day of 
the  month  following  the  date  on  which  the  Parties  notify  each  other  of  the 
completion of the procedures necessary for this purpose. 

The JIC may adopt amendments to the Annexes to this Agreement. 

Notification  of  any  amendment  shall  be  made  to  the  Secretary-General  of  the 
Council  of  the  European  Union  and  to  the  Minister  for  Foreign  Affairs  of  the 
Republic of Indonesia through diplomatic channels. 

EN 

15 

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Article 23 

1. 

2. 

3. 

4. 

Entry into Force, Duration and Termination 

This Agreement shall enter into force on the first day of the month following the date 
on which the Parties notify each other in writing of the completion of their respective 
procedures necessary for this purpose. 

Notification shall be made to the Secretary-General of the Council of the European 
Union and to the Minister for Foreign Affairs of the Republic of Indonesia through 
diplomatic channels  

This Agreement shall remain in force for a period of five years. It shall be extended 
for  consecutive  periods  of  five  years,  unless  a  Party  renounces  the  extension  by 
notifying  the  other  Party  in  writing  at  least  twelve  months  before  this  Agreement 
expires. 

Either  Party  may  terminate  this  Agreement  by  notifying  the  other  Party  in  writing. 
This  Agreement  shall  cease  to  apply  twelve  months  after  the  date  of  such 
notification. 

Article 24 

Annexes 

The Annexes to this Agreement shall form an integral part thereof. 

Article 25 

Authentic Texts 

This  Agreement  shall  be  drawn  up  in  duplicate  in  the  Bulgarian,  Czech,  Danish,  Dutch, 
English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, 
Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Indonesian 
(Bahasa  Indonesia)  languages,  each  of  these  texts  being  authentic.  In  case  of  divergence  of 
interpretation the English text shall prevail. 

IN  WITNESS  WHEREOF,  the  undersigned, being duly authorised thereto, have signed this 
Agreement. 

DONE at Brussels,  

For the European Union 

For the Republic of Indonesia 

EN 

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ANNEX I 

PRODUCT COVERAGE 

The list in this Annex refers to the Harmonised Commodity Description and Coding System 
established by the International Convention on the Harmonised Commodity Description and 
Coding System of the World Customs Union. 

ANNEX IA: THE HARMONISED COMMODITY CODES FOR TIMBER AND TIMBER 
PRODUCTS COVERED UNDER THE FLEGT LICENSING SCHEME 

Chapter 44: 

HS CODES 

 DESCRIPTION 

Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; 
wood  in  chips  or  particles;  sawdust  and  wood  waste  and  scrap, 
whether  or  not  agglomerated  in  logs,  briquettes,  pellets  or  similar 
forms. 

4401.21  

4401.22 

-  Wood in chips or particles - coniferous 

-  Wood in chips or particles - non coniferous 

Ex.4404 

-  Chipwood and the like 

Ex.4407 

-  Wood  sawn  or  chipped  lengthwise,  sliced  or  peeled,  planed,  sanded

or end-jointed, of a thickness exceeding 6 mm. 

4408 

4409.10 

4409.29 

4410 

4411 

Sheets  for  veneering  (including  those  obtained  by  slicing  laminated 
wood),  for  plywood  or  for  similar  laminated  wood  and  other  wood, 
sawn  lengthwise,  sliced  or  peeled,  whether  or  not  planed,  sanded, 
spliced or end-jointed, of a thickness not exceeding 6 mm. 

Wood  (including  strips  and  friezes  for  parquet  flooring,  not 
(tongued,  grooved,  rebated, 
assembled)  continuously 
chamfered,  V-jointed,  beaded,  moulded,  rounded  or  the  like)  along 
any of its edges, ends or faces, whether or not planed, sanded or end-
jointed. 

shaped 

-  Coniferous 

-  Non-coniferous – other 

Particle board, oriented strand board (OSB) and similar board (for 
example,  waferboard)  of  wood  or  other  ligneous  materials,  whether 
or not agglomerated with resins or other organic binding substances. 

Fibreboard  of  wood  or  other  ligneous  materials,  whether  or  not 

EN 

17 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
4412 

4413 

4414 

4415 

4416 

4417 

4418 

bonded with resins or other organic substances. 

Plywood, veneered panels and similar laminated wood 

Densified wood, in blocks, plates, strips or profile shapes. 

Wooden  frames  for  paintings,  photographs,  mirrors  or  similar 
objects. 

Packing  cases,  boxes,  crates,  drums  and  similar  packings,  of  wood; 
cable-drums  of  wood;  pallets,  box  pallets  and  other  load  boards,  of 
wood; pallet collars of wood. 

Casks,  barrels,  vats,  tubs  and  other  coopers'  products  and  parts 
thereof, of wood, including staves. 

Tools, tool bodies, tool handles, broom or brush bodies and handles, 
of wood; boot or shoe lasts and trees, of wood. 

Builders'  joinery  and  carpentry  of  wood,  including  cellular  wood 
panels, assembled flooring panels, shingles and shakes. 

Ex.4421.90 

Chapter 47: 

-  Wooden paving blocks 

HS CODES 

 DESCRIPTION 

4701 

4702 

4703 

4704 

4705 

Pulp  of  wood  or  of  other  fibrous  cellulosic  material;  recovered 
(waste and scrap) paper or paperboard: 

-  Mechanical wood pulp 

-  Chemical wood pulp, dissolving grades 

-  Chemical  wood  pulp,  soda  or  sulphate,  other  than  dissolving

grades. 

-  Chemical wood pulp, sulphite, other than dissolving grades 

-  Wood  pulp  obtained  by  a  combination  of  mechanical  and

chemical pulping processes 

EN 

18 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chapter 48: 

HS CODES 

 DESCRIPTION 

4802 

4803 

4804 

4805 

4806 

4807 

4808 

4809 

4810 

Uncoated  paper  and  paperboard,  of  a  kind  used  for  writing, 
printing  or  other  graphic  purposes,  and  non-perforated  punch-
cards  and  punch  tape  paper,  in  rolls  or  rectangular  (including 
square)  sheets,  of  any  size,  other  than  paper  of  heading  48.01  or 
48.03; hand-made paper and paperboard: 

Toilet or facial tissue stock, towel or napkin stock and similar paper 
of  a  kind  used  for  household  or  sanitary  purposes,  cellulose 
wadding  and  webs  of  cellulose  fibres,  whether  or  not  creped, 
crinkled,  embossed,  perforated, 
surface-
decorated or printed, in rolls or sheets. 

-coloured, 

surface 

Uncoated kraft paper and paperboard, in rolls or sheets, other than 
that of heading 48.02 or 48.03. 

Other  Uncoated  paper  and  paperboard,  in  rolls  or  sheets,  not 
further  worked  or  processed  than  as  specify  in  Note  3  to  this 
chapter. 

Vegetable  parchment,  greaseproof  papers,  tracing  papers  and 
glassine and other glazed transparent or translucent papers, in rolls 
or sheets. 

Composite  paper  and  paperboard  (made  by  sticking  flat  layers  of 
paper or paperboard together with an adhesive), not surface-coated 
or  impregnated,  whether  or  not  internally  reinforced,  in  rolls  or 
sheets. 

Paper  and  paperboard,  corrugated  (with  or  without  glued  flat 
surface sheets), creped, crinkled, embossed or perforated, in rolls or 
sheets, other than paper of the kind described in heading 48.03. 

Carbon paper, self-copy paper and other copying or transfer papers 
(including  coated  or  impregnated  paper  for  duplicator  stencils  or 
offset plates), whether or not printed, in rolls or sheets. 

Paper  and  paperboard,  coated  on  one  or  both  sides  with  kaolin 
(China clay) or other inorganic substances, with or without binder, 

EN 

19 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4811 

4812 

4813 

4814 

4816 

4817 

4818 

4821 

4822 

4823 

and  with  no  other  coating,  whether  or  not  surface-coloured, 
surface-decorated  or  printed,  in  rolls  or  rectangular  (including 
square) sheets, of any size. 

Paper,  paperboard, cellulose wadding  and  webs  of  cellulose  fibres, 
coated,  impregnated,  covered,  surface-coloured,  surface-decorated 
or printed, in rolls or rectangular (including square) sheets, of any 
size, other than goods of the kind described in heading 48.03, 48.09 
or 48.10. 

Filter blocks, slabs and plates, of paper pulp. 

Cigarette paper, whether or not cut to size or in the form booklets 
or tubes. 

Wallpaper  and  similar  wall  covering;  window  transparencies  of 
paper. 

Carbon paper, self-copy paper and other copying or transfer papers 
(other  than  those  of  heading  48.09),  duplicator  stencils  and  offset 
plates, of paper, whether or not put up in boxes. 

Envelopes, letter cards, plain postcards and correspondence cards, 
of  paper  or  paper  board;  boxes,  pouches,  wallets  and  writing 
compendiums, of paper or paperboard, containing an assortment of 
paper stationary. 

Toilet  paper  and  similar  paper,  cellulose  wadding  or  webs  of 
cellulose fibres, of a kind used for household or sanitary purposes, 
in  rolls  of  a  width  not  exceeding  36  cm,  or  cut  to  size  or  shape; 
handkerchief,  cleansing  tissues,  towels,  tablecloths,  serviettes, 
napkins  for  babies,  tampons,  bed  sheets  and  similar  household, 
sanitary  or  hospital  articles,  articles  of  apparel  and  clothing 
accessories,  of  paper  pulp,  paper,  cellulose  wadding  or  webs  of 
cellulose fibres. 

Paper or paperboard labels of all kinds, whether or not printed. 

Bobbins,  spools,  cops  and  similar  support  of  paper  pulp,  paper  or 
paper board whether or not perforated or hardened. 

Other  paper,  paperboard,  cellulose  wadding  and  webs  cellulose 
fibres,  cut  to  size  or  shape;  other  articles  of  paper  pulp,  paper, 
paperboard, cellulose wadding or webs of cellulose fibres. 

EN 

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Chapter 94:  

HS CODES 

 DESCRIPTION 

Other seats, with wooden frames: 

9401.61. 

9401.69. 

-  Upholstered 

-  Other 

Other furniture and parts thereof  

9403.30  

9403.40  

9403.50 

9403.60  

-  Wooden furniture of a kind used in offices 

-  Wooden furniture of a kind used in the kitchen 

-  Wooden furniture of a kind used in the bedroom 

-  Other wooden furniture 

Ex. 9406.00. 

-  Pre-fabricated constructions made of wood 

ANNEX 
PROHIBITED FROM EXPORT UNDER INDONESIAN LAW 

IB:  THE  HARMONISED  COMMODITY  CODES  FOR  TIMBER 

Chapter 44:  

HS CODES 

DESCRIPTION 

4403 

Ex. 4404 

Wood  in  the  rough, whether or not stripped of bark or sapwood, 
or roughly squared: 

-  Hoopwood;  split  poles;  piles,  pickets  and  stakes  of  wood,
pointed  but  not  sawn 
lengthwise;  wooden  sticks,  roughly
trimmed, but not turned, bent or otherwise worked, suitable for the
  manufacture  of  walking-sticks,  umbrellas,  tool  handles  or  the

like. 

4406 

Railway or tramway sleepers (cross-ties) of wood.  

Ex. 4407 

-  Wood  sawn  or  chipped  lengthwise,  sliced  or  peeled,  not  planed,
not sanded or not end-jointed, of a thickness exceeding 6 mm. 

EN 

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ANNEX II 

LEGALITY DEFINITION 

INTRODUCTION 

Indonesian  timber  is  deemed  legal  when  its  origin  and  production  process  as  well  as 
subsequent  processing,  transport  and  trade  activities  are  verified  as  meeting  all  applicable 
Indonesian laws and regulations. 

Indonesia  has  five  legality  standards  articulated  through  a  series  of  principles,  criteria, 
indicators and verifiers, all based on the underlying laws, regulations and procedures. 
These five standards are: 

• 

• 

• 

• 

• 

Legality Standard 1: the standard for concessions within production forest zones on 
state-owned lands; 

Legality  Standard  2:  the  standard  for  community  plantation  forests  and  community 
forests within production forest zones on state-owned lands; 

Legality Standard 3: the standard for privately-owned forests;  

Legality Standard 4: the standard for timber utilisation rights within non-forest zones 
on state-owned lands; 

Legality  Standard  5:  the  standard  for  primary  and  downstream  forest  based 
industries. 

These  five  legality  standards  apply  to  different  types  of  timber  permits  as  set  out  in  the 
following table: 

Permit type 

Description 

IUPHHK-
HA/HPH 
IUPHHK-
HTI/HPHTI 
IUPHHK-RE 

IUPHHK- 
HTR 

Permit to utilise forest 
products from natural forests 
Permit to establish and manage 
industrial forest plantation 
Permit for forest ecosystem 
restoration 
Permit for community forest 
plantations 

IUPHHK-
HKM 

Permit for community forest 
management 

Private Land  No permit required 

IPK/ILS 

IUIPHHK 

Permit  to  utilise  timber  from 
non-forest zones 
Permit for establishing and 

Land ownership / 
resource 
management or 
utilisation 
State owned/ 
company managed 
State owned/ 
company managed 
State owned/ 
company managed 
State owned/ 
community 
managed 
State owned/ 
community 
managed 
Privately owned/ 
privately utilised  
State owned/ 
privately utilised 
Not applicable 

Applicable 
legality 
standard 

1 

1 

1 

2 

2 

3 

4 

5 

EN 

22 

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Permit type 

Description 

IUI Lanjutan 
or IPKL 

managing a primary processing 
company 
Permit for establishing and 
managing a secondary 
processing company 

Land ownership / 
resource 
management or 
utilisation 

Applicable 
legality 
standard 

Not applicable 

5 

These five legality standards and the associated verifiers are outlined below. 

EN 

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ANNEX II - LEGALITY STANDARD 1: THE STANDARDS FOR CONCESSIONS WITHIN PRODUCTION FOREST ZONES  

No  Principles 

Criteria 

Indicators 

Verifiers 

1  P1. Legal status of
area and right
to utilise 

K1.1 Forest 

1.1.1  Permit holder can 

management unit 
(concessionaires) 
is located within 
the production 
forest zone. 

demonstrate that the 
timber utilisation 
permit (IUPHHK) is 
valid 

Forest concession right 
certificate  

Proof of payment for the timber 
forest product utilisation permit. 

2. 

 P2. Comply with the

K2.1  Permit holder

  system and
  procedures for
  harvesting. 

  possesses a
  harvest plan

for the cutting

  area that has
  been
  approved by

the competent
  administrative
  authorities. 

2.1.1 The competent 
administrative 
authority has approved 
the work plan 
documents: master 
plan, annual work 
plan, including their 
attachments. 

The approved master plan & 
attachments, drawn up based on 
a comprehensive forest 
inventory conducted by 
technically competent staff. 

The approved annual work plan, 
drawn up based on the master 
plan  
Maps, drawn up by technically 
competent staff, which describe 
the layout and boundaries of the 
areas covered by the plan of 
work  

Related Regulations11 

Government Regulation 
PP72/2010  

Regulation of the Minister 
for Forestry P50/2010  

Regulation of the Minister 
for Forestry P12/2010 

Regulation of the Minister 
for Forestry P62/2008  

Regulation of the Minister 
for Forestry P56/2009 
Regulation of the Minister 
for Forestry P60/2011 

11 

Indicates main regulations, which also covers subsequent amendments 

EN 

24 

EN 

 
  
                                                 
 
 
 
 
No  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

Map indicating logging 
exclusion zones within the 
Annual Work Plan and evidence 
of implementation on the 
ground. 

Harvesting locations (blocks or 
compartments) on the map are 
clearly marked and verified on 
the ground. 

K2.2 Work plan is
  valid  

2.2.1 Forest permit holder

  has a valid work plan
  in compliance with
  applicable regulations

Timber forest product utilisation 
master plan document & 
attachments (ongoing 
applications are acceptable) . 

The location and extractable 
volumes of natural forest logs 
within areas to be 
harvestedcorespond with the 
work plan. 

Regulation of the Minister 
for Forestry P62/2008  

Regulation of the Minister 
for Forestry P56/2009  

Regulation of the Minister 
for Forestry P60/2011 

Permit for equipment and 
equipment transfer  

Regulation of the Minister 
for Forestry P53/2009 

2.2.2  Permits for all

  harvesting equipment
  are valid and can be
  verified in the field.
(not applicable to a
state forest company) 

EN 

25 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
No  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

3.  P3. The legality of
  the transport or
  the change of
  ownership of
  round logs. 

K3.1 Permit holders
ensure that all
the logs
transported
from a log yard
in the forest to
a primary forest
products
industry, or
registered log
trader, including
via an
intermediate log
yard, is
physically
identified and
accompanied by
valid documents.

Approved Timber Production 
Report documents  

Regulation of the Minister 
for Forestry P55/2006  

3.1.1 All the large diameter
logs harvested or
commercially
extracted have been
reported in a Timber
Production Report  

3.1.2 All the timber

transported out of the
permit areas is
accompanied by a
valid transport
document. 

Valid transport documents and 
attachments accompany logs 
from the log yard to primary 
forest products industry or 
registered log trader , including 
via intermediate log yards 

Regulation of the Minister 
for Forestry P55/2006  

3.1.3 The round logs have

been harvested in the
areas set out in the
forest utilisation
permit  

Timber administration 
marks/barcode (PUHH) on logs.

Regulation of the Minister 
for Forestry P55/2006  

Permit holder applies timber 
marking consistently 

EN 

26 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

K3.2 Permit holder
  has settled
  the payment of
  applicable fees
  and levies for
  the commercial
  extraction of
  timber 

3.2.1 Permit holder 

shows

  proof of payment of
  Reforestation Fund
  and/or Forest
  Resources Fee,  which
  corresponds to the log
  production and the
  applicable tariff. 

Payment Orders for 
Reforestation Funds and/or 
Forest Resources Fee.  

Proof of Deposit made for the 
Payment of Reforestation Fund 
and/or Forest Resources Fee 
and the Payment Slips. 

Payment of the Reforestation 
Funds and/or Forest Resources 
Fee is consistent with log 
production and the applicable 
tariff.  

Government Regulation 
PP22/1997  

Government Regulation 
PP 51/1998 

Regulation of the Minister 
for Forestry P18/2007  

Regulation of the Minister 
for Trade 22/M-
DAG/PER/4/2012 

Government Regulation 
PP59/1998  

EN 

27 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
No  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

K3.3 Inter-island

  transportation
  and trade 

3.3.1 Permit holders who
ship logs are
Registered Inter-
Island Timber
Traders  (PKAPT). 

PKAPT documents 

Regulation of the Minister 
for Industry and Trade 
68/2003 

Joint Regulation of the 
Minister for Forestry, 
Minister for 
Transportation, and 
Minister for Industry and 
Trade 22/2003 

3.3.2  The vessel used to

transport round logs
is Indonesian
flagged and
possesses a valid
permit to operate. 

Registration documents which 
show the identity of the vessel 
and valid permit. 

Regulation of the Minister 
for Industry and Trade 
68/2003 

Joint Regulation of the 
Minister for Forestry, 
Minister for 
Transportation, and 
Minister for Industry and 
Trade 22/2003 

EN 

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EN 

 
  
 
 
 
 
 
   
 
 
 
 
 
No  Principles 

Criteria 

Indicators 

Verifiers 

4. 

P4. Compliance with
  environmental
  and social aspects
  related to  timber
  harvesting  

K4.1 Permit holder

4.1.1  Permit holder has

EIA documents  

  EIA documents
  approved by the
  competent
  authorities which
  cover the entire work
  area. 

has an approved
Environmental
Impact
Assessment
(EIA)
document and
has
implemented
measures
identified in it.  

4.1.2 Permit holder has
  environmental
  management plan
  and environmental
  monitoring plan
  implementation
  reports indicating the
  actions taken to
  mitigate
  environmental
  impacts and provide
  social benefits.  

Environmental management 
plan and environmental 
monitoring plan documents 

Proof of implementation of the 
environmental management 
plan and monitoring of 
significant environmental and 
social impacts 

Related Regulations 

Government Regulation 
PP27/1999  

Regulation of the Minister 
for Forestry and Plantation 
602/1998  

Government Regulation 
PP27/1999 

EN 

29 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
No  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

5.  P5. Compliance with

  labor laws and
  regulations 

K.5.1  Fulfilment of
  occupational
  safety and
  health (OSH)
  requirements 

5.1.1 Availability of OSH 
procedures and their 
implementation  

K.5.2  Fulfillment of

5.2.1 Freedom of 

  workers’ rights 

association for 
workers 

Implementation of OSH 
procedures 

OSH equipment 

Employment injury records 

Regulation of the Minister 
for Manpower & 
Transmigration 01/1978 
Regulation of the Minister 
for Forestry P12/2009 

Workers belong to workers 
unions or company policies 
allow workers to establish or get 
involved in union activities 

Act 21/2000 
Regulation of the Minister 
for Manpower & 
Transmigration 16/2001 

5.2.2 Existence of 

collective labour 
agreements  

Collective labour agreement 
documents or company policy 
documents on labour rights 

Act 13/2003 
Regulation of the Minister 
for Manpower & 
Transmigration 16/2011 

5.2.3 Company does not 

employ minors/ 
underage workers 

There are no underage workers   Act 13/2003  
Act 23/2003 
Act 20/2009 

EN 

30 

EN 

 
  
 
 
 
LEGALITY STANDARD 2: THE STANDARD FOR COMMUNITY PLANTATION FORESTS AND COMMUNITY FORESTS WITHIN 
PRODUCTION FOREST ZONES  

Indicators 

Verifiers 

Related Regulations 

No  Principles 

1. 

  P1. Legal status of area 
and right to utilise 

Criteria 

K1.1 Forest 

management unit 
is located within 
the production 
forest zone. 

1.1.1  Permit holder can 

demonstrate that the 
timber utilisation 
permit (IUPHHK) is 
valid. 

Forest concession right 
certificate  

Regulation of the Minister 
for Forestry P55/2011  

Proof of payment for the 
timber forest product 
utilisation permit. 

Regulation of the Minister 
for Forestry P37/2007  

Regulation of the Minister 
for Forestry P49/2008 
Regulation of the Minister 
for Forestry P12/2010 

Approved annual work plan 
document. 

Regulation of the Minister 
for Forestry P62/2008  

Map indicating logging 
exclusion zones in the anual 
work plan and evidence of 
implementation on the 
ground. 

Harvesting block location are 
clearly marked and can be 
verified on the ground.  

2. 

  P2. Comply with the 
system and 
procedures for 
harvesting  

2.1.1 The competent 
administrative 
authority has 
approved the annual 
work plan document. 

K2.1Permit holder has
a harvesting plan
for the cutting
area that has
been approved by
the competent
administrative
authorities 

EN 

31 

EN 

 
  
 
 
 
 
 
 
 
No  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

K2.2 Work plan is
  valid  

2.2.1  Forest pemit holder

  has a valid work plan
  in compliance with
  applicable
  regulations. 

Timber Forest Product 
Utilisation Master Plan 
document and attachments 
(on-going applications are 
acceptable) 

Regulation of the Minister 
for Forestry P62/2008  

The location and extractable 
volumes of logs within the 
area to be established to 
timber estate are to 
correspond to the work plan. 

Permits for equipment and 
equipment transfer. 

Regulation of the Minister 
for Forestry P53/2009. 

Approved Timber Production 
Report documents 

Regulation of the Minister 
for Forestry P55/2006  

2.2.2 Permits for all

  harvesting equipment
  are valid and can be
  physically verified in
  the field. 

K2.3 Permit holders

2.3.1 All large diameter

  logs which have been
  harvested or
  commercially
  extracted are
  reported in the
  Timber Production
  Report. 

ensure that all the
logs transported
from a log yard in
the forest to a
primary forest
products industry
or registered log
trader, including
via an
intermediate log   

EN 

32 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

yard are
physically
identified and
accompanied by
valid documents. 

2.3.2  All the logs

transported out of
the permit area are
accompanied by a
legal transport
document. 

2.3.3 The round logs have
been harvested ina
the areas set out in
the forest utilisation
permit  

2.3.4 Permit holder can 

show the existence of 
log transport 
documents 
accompanying logs 
transported from log 
yard. 

Legal 
transport  documents 
attachments 
and 
relevant 
from  the  Log  Yard  to  the 
Intermediate  Log  Yard  and 
from  Intermediate  Log  Yard 
to  primary  industry  and/or 
registered log trader. 

Timber administration 
marks/barcode (PUHH) on 
logs. 

Permit holder applies timber 
marking consistently.  

Log Transport Document to 
which is attached a log list 
document. 

Regulation of the Minister 
for Forestry P55/2006  

Regulation of the Minister 
for Forestry P55/2006  

Regulation of the Minister 
for Forestry P55/2006  

EN 

33 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

K2.4 Permit holder has 

paid applicable 
fees and levies 
required for the 
commercial 
extraction of 
timber 

2.4.1 Permit holders show
  proof of payment of
  Forest Resources
  Fee which
  corresponds to the log
  production and the
  applicable tariff. 

Payment Order for Forest 
Resources Fee 

Regulation of the Minister 
for Forestry P18/2007  

Proof of Payment of Forest 
Resources Fee 

Payment of the Forest 
Resources Fee is consistent 
with log production and the 
applicable tariff.  

Regulation of the Minister 
for Trade 22/M-
DAG/PER/4/2012 

Regulation of the Minister 
for Forestry and 
Plantation 622/1999 

3. 

  P3. Compliance

 withenvironmental
 and social aspects
 pertaining to timber
 harvesting  

K3.1 Permit holder has
  an approved
  Environmental
  Impact
  Assessment
  (EIA)
  document and
  has implemented
  measures
  identified in it.  

3.1.1 Permit holder has

EIA documents  

  environmental impact
  assessment
  documents approved
  by the competent
  authorities which
  cover the entire work
  area. 

EN 

34 

EN 

 
  
 
 
 
No.  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

Government Regulation 
PP27/1999 

3.1.2 Permit holder has
 environmental
 management and
 monitoring
 implementation
 reports taken to
 mitigate
 environmental
 impacts and provide
 social benefits. 

Relevant environmental 
management and monitoring 
documents  

Proof of implementation of
environmental management
and monitoring of significant 
environmental and social 
impacts 

EN 

35 

EN 

 
  
 
 
 
 
LEGALITY STANDARD 3: THE STANDARD FOR PRIVATELY-OWNED FORESTS 

No.  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

1. 

P1. Timber 

K1.1  Legality of 

ownership can 
be verified  

ownership or land 
title in relation to 
the timber 
harvesting area. 

EN 

1.1.1  Private land or forest 
owner can prove 
ownership or use 
rights of the land.  

Valid land ownership or land 
tenure documents (land title 
documents recognized by 
competent authorities)  

Land Cultivation Right. 
Deed of Establishment of the 
Company 

Business licence for companies 
engaging in trading business 
(SIUP) 

Company registration (TDP) 

Tax payer registration (NPWP) 

Map of the area of private 
forest and boundaries 
delineated on the ground. 

Act 5/1960 

Regulation of the 
Minister for Forestry 
P33/2010  

Government Regulation 
PP12/1998 

Regulation of the 
Minister for Trade 
36/2007  

Regulation of the 
Minister for Trade 
37/2007  

Act 6/1983  
Act 13/2003 
Act 23/2003 
Act 20/2009 

Certificate of Timber Origin or 
Log Transport Document  

Invoice/ sales receipt/ freight 
clearance. 

Regulation of the 
Minister for Forestry 
P30/2012  

1.1.2  Management units

(either owned
individually or by a
  group) demonstrate
  valid timber

transportation

  documents. 

36 

EN 

 
  
 
 
 
No.  Principles 

No.  Principles 

Criteria 

Criteria 

Indicators 

Indicators 

Verifiers 

Verifiers 

1.1.3   Management units
  show proof of
  payment of
  applicable
  charges related to
  trees present prior to
  the transfer of rights
  or tenure of the area. 

Proof of payment of 
Reforestation Fund and/or 
Forest Resources Fee and 
compensation to the state for 
the value of stumpage cut. 

Related Regulations 

Related Regulations 

Regulation of the 
Minister for Forestry 
P18/2007 

2.  P2. Compliance
  with
  environmental
  and social
  aspects related
  to timber
  harvesting in the
  case of areas
  subject to Land
  Cultivation
  Rights 

K2.1 Permit holder has 
an approved 
Environmental 
Impact Assessment 
(EIA) document 
and has 
implemented 
measures identified 
in it.  

3.  P3. Compliance with

K3.1 Fulfilment of 

occupational safety 
and health (OSH) 
requirements 

  labor laws and
  regulations in 
the  case of areas
  subject to Land
  Cultivation
  Rights 

EIA documents 

2.1.1 Permit holder has EIA
  documents approved
  by the competent
  authorities which
  cover the entire work
  area. 

Government Regulation 
PP27/1999  

Regulation of the 
Minister for Forestry and 
Plantation 602/1998  

3.1.1 Availability of OSH 
procedures and their 
implementation  

Implementation of OSH 
procedures 

OSH equipment 

Employment injury records 

Regulation of the 
Minister for Manpower 
& Transmigration 
01/1978 

Regulation of the 
Minister for Forestry 
P12/2009 

EN 

37 

EN 

 
  
 
 
 
No.  Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

K.3.2  Fulfillment of

3.2.1 Freedom of 

  workers’ rights 

association for 
workers 

Workers belong to workers 
unions or company policies 
allow workers to establish or 
get involved in union activities 

3.2.2  Existence of 

collective labour 
agreements  

Collective labour agreement 
documents or company policy 
documents on labour rights 

Act 21/2000 

Regulation of the 
Minister for Manpower 
& Transmigration 
16/2001 

Act 13/2003 

Regulation of the 
Minister for Manpower 
& Transmigration 
16/2011 

3.2.3 Company does not 
employ minors 
underage workers 

There are no underage workers   Act 13/2003  

Act 23/2003 

Act 20/2009 

EN 

38 

EN 

 
  
 
 
 
LEGALITY STANDARD 4: THE STANDARD FOR TIMBER UTILISATION RIGHTS WITHIN NON-FOREST ZONES  

No.  Principles  

Criteria  

Indicators  

Verifiers  

Related Regulations 

1. 

P1.  Legal status of 

K.1.1. Timber

area and right to 
utilise 

harvesting
permit within
non-forest zone
without altering
the legal status
of the forest. 

K1.2  Timber

  harvesting
  permit within
  non-forest zone
  which leads to a
  change in the
legal status of
the forest  

Regulation of the 
Minister for Forestry 
P18/2011  

Regulation of the 
Minister for Forestry 
P14/2011  

Regulation of the 
Minister for Forestry 
P33/2010  

1.1.1  Harvesting operation
  authorised under
  Other Legal Permit
  (ILS) / conversion
  permits (IPK) in a
  lease area.  

ILS/IPK permits for harvesting 
operations in the lease area  

Maps attached to the ILS/IPK 
permits of the lease area and 
evidence of compliance on the 
ground. 

1.2.1  Timber harvesting
  authorised under a
  land conversion permit 
(IPK).  

Business permit and maps 
attached to the permit (this 
requirement applies to both IPK 
holders and business permit 
holders)  

IPK in conversion areas 

Maps attached to IPK 

Documents authorising changes 
in the legal status of the forest 
(this requirement applies to 
both IPK permit holders and 
business permit holders) 

EN 

39 

EN 

 
  
 
 
 
 
 
 
 
 
 
No.  Principles  

Criteria  

Indicators  

Verifiers  

Related Regulations 

K1.3  Permit to extract

1.3.1. Timber harvesting is

HTHR permit  

timber forest
  products from a
state forest area
for

  Reforestation-
  based Plantation
  Forest (HTHR)
  activities 

  authorised under a
  permit to extract
  timber forest products
  from reforestation-
  based plantation
  forests in areas
  designated for
  reforestation-based
  plantation forests
  (HTHR) 

Maps attached to HTHR and 
evidence of compliance on the 
ground 

K2.1  IPK/ILS plan and 
implementation 
complies with land 
use planning.  

2.1.1  Approved work plan
for the areas covered

  by IPK/ ILS  

IPK/ILS work plan documents  

Valid equipment permit  

2.1.2  The permit holder

Forest inventory documents  

  can demonstrate that
  the transported logs
  are from areas under
  valid land conversion
  permit/ other use
  permits (IPK/ILS)  

40 

Timber Production Report 
documents (LHP) 

Regulation of the 
Minister for Forestry 
P59/2011  

Regulation of the 
Minister for Forestry 
P62/2008  

Regulation of the 
Minister for Forestry 
P53/2009 

Regulation of the 
Minister for Forestry 
P62/2008  

Regulation of the 
Minister for Forestry 
P55/2006  

2. 

P2. Compliance with 

legal systems 
and procedures 
for tree 
harvesting and 
for the 
transportation of 
logs 

EN 

EN 

 
  
 
 
 
 
 
 
 
No.  Principles  

Criteria  

Indicators  

No.  Principles  

Criteria  

Indicators  

Verifiers  

Verifiers  

Related Regulations 

Related Regulations 

Regulation of the 
Minister for Forestry 
P18/2007 

K2.2  Payment of 

2.2.1  Evidence of payment

government fees 
and levies and 
compliance with 
timber 
transportation 
requirements 

  of charges.  

2.2.2  Permit holder has
  valid timber
  transportation
  documents  

Proof of payment of 
Reforestation Funds, Forest 
Resources Fee and 
compensation to the state for 
the value of stumpage cut. 

Logs Transportation Invoice 
(FAKB) and log list for small 
diameter logs  

Regulation of the 
Minister for Forestry 
P55/2006  

Log Legality Document 
(SKSKB) and log list for large 
diameter logs  

3.  P3. Compliance with 

labor laws  and 
regulations  

K.3.1 Fulfillment of
  occupational
  safety and health
  (OSH)
  requirements 

3.1.1 Availability of OSH 
procedures and their 
implementation  

Implementation 
procedures 

OSH equipment 

of 

OSH 

Employment injury records 

K.3.2 Fulfillment of

3.2.1 Freedom of 

  workers’ rights 

association for 
workers 

Workers belong to workers 
unions or company policies 
allow workers to establish or 
get involved in union activities 

Regulation of the 
Minister for Manpower 
& Transmigration 
01/1978 

Regulation of the 
Minister for Forestry 
P12/2009 

Act 21/2000 

Regulation of the 
Minister for Manpower 
& Transmigration 
16/2001 

EN 

41 

EN 

 
  
 
 
No.  Principles  

Criteria  

Indicators  

Verifiers  

Related Regulations 

3.2.2  Existence of 

collective labour 
agreements  

Collective labour agreement 
documents or company policy 
documents on labour rights 

Act 13/2003 

Regulation of the 
Minister for Manpower 
& Transmigration 
16/2011 

3.2.3 Company does not

There are no underage workers  Act 13/2003  

 employ minors/
 underage workers 

Act 23/2003 

Act 20/2009 

EN 

42 

EN 

 
  
 
 
 
 
LEGALITY STANDARD 5: THE STANDARD FOR PRIMARY AND DOWNSTREAM FOREST-BASED INDUSTRY  

Principles 

Criteria 

Indicators 

Verifiers 

1.1.1  Processing industry 

units are in possession 
of valid permits  

P1. Timber forest product 
processing industry 
supports the realization 
of legal trade in 
timber.  

K1.1. Business units in 
the form of :  

(a)  Processing 

industry, and  
(b) Exporters of 
processed 
products are in 
possession of 
valid permits 

The deed of establishment of 
the company and latest 
amendments to the deed (the 
Company’s Establishment 
Deed) 

Permit to engage in trading 
business (Business Licence 
/SIUP) or trading permit, 
which may be Industrial 
Business Permit (IUI) or 
Permanent Business Permit 
(IUT) or Industrial 
Registration Certificate (TDI) 

Nuisance/ disturbance permit 
(permit issued to the company 
for affecting the environment 
around which it operates its 
business) 

Company Registration 
Certificate (TDP) 

Tax Payer Identification 
Number (NPWP) 

Related Regulations 

Regulation of the 
Minister for Law & 
Human Rights M.01-
HT.10/2006 
Regulation of the 
Minister for Trade 
36/2007  
Regulation of the 
Minister for Trade 
37/2007 
Act 6/1983  
Government Regulation 
PP80/2007 
Regulation of the 
Minister for Forestry 
P35/2008  
Regulation of the 
Minister for Forestry 
P16/2007  
Regulation of the 
Minister for Trade 
39/2011  
Regulation of the 
Minister for Industry 
41/2008  
Reg. of the Minister for 
Environment 13/2010 

EN 

43 

EN 

 
  
Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

Availability of Environmental 
Impact Assessment documents 

Availability of Industrial 
Business Permit (IUI) or 
Permanent Business Permit 
(IUT) or Industrial 
Registration Certificate (TDI) 

Availability of Raw Materials 
Stock Planning (RPBBI) for 
Forest Products Primary 
Industry (IPHH). 

The exporters have the status 
of Registered Exporters of 
Forestry Industry Products 
(ETPIK). 

Regulation of the 
Minister for Trade 
P64/2012 

1.1.2  Exporters of

  processed timber
  products have valid
  permits as both
  producers and
  exporters of timber
  products.  

EN 

44 

EN 

 
  
 
 
 
 
 
Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

Deed of establishment  

Act 6/1983  

Tax Payer Registration 
(NPWP) 

Registration of the traders as 
Non-Producer Exporters of 
Forestry Industry Products 
(ETPIK Non Produsen). 

Regulation of the 
Minister for Trade 
P64/2012 

K1.2 Business units
  in the form of
  groups of
  artisans /
  household
  industries are
  legally
  registered 

1.2.1  The business groups
  (cooperatives /
  limited partnership
  (CV) / other
  business groups) are
  legally established.  

1.2.2  Traders of

  processed timber
  products have valid
  registration as
  exporters and are
  supplied by small
  and medium
  certified
  processing industry
  not registered as
  exporters 

Agreement or contract of 
collaboration with a 
processing industry unit which 
has timber legality certificate 
(S-LK) 

EN 

45 

EN 

 
  
 
 
 
 
 
Principles 

Criteria 

Indicators 

Verifiers 

P2.  Business units apply
  timber tracking
  system which
  ensures that the
  origin of the timber
  can be traced  

K2.1  Existence and

2.1.1  Business units can

  application of a
  system which
  traces timber in
  the forest
  products  

  demonstrate that the
  timber received
  comes from legal
  sources. 

Sales and purchase documents 
and or contract of supply of 
materials and or proof of 
purchase and equipped with 
forest products legality 
documents / letter of 
attestation of the legality of 
forest products  

Approved report on the 
transfer of timber and/or proof 
of transfer and or official 
report on the examination of 
timber; letter of attestation of 
the legality of forest products 

Imported timber is 
accompanied by Import 
Notification documents and 
information concerning the 
origin of the timber as well as 
documents certifying the 
legality of the timber and 
country of harvest  

Related Regulations 

Regulation of the 
Minister for Forestry 
P55/2006  

Regulation of the 
Minister for Forestry 
P30/2012  

Regulation of the 
Minister for Forestry 
P62/2008  

Regulation of the 
Minister for Forestry 
P56/2009  

EN 

46 

EN 

 
  
 
Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

Log transport documents  

Transport documents (SKAU/ 
Nota) with corresponding 
official reports from the 
officer of the local authority 
with respect to used timber 
from demolished buildings/ 
structures, unearthed timber 
and buried timber.  

Transport documents in the 
form of FAKO/ Nota for 
industrial waste wood  

Documents/ reports on 
changes in the stock of round 
logs (LMKB) /reports on 
changes in the stock of small-
diameter round logs 
(LMKBK)/reports on changes 
in the stock of processed 
timber forest products 
(LMHHOK) 

Supporting documents, that is, 
Raw Materials Stock Planning 
(RPBBI), letter of decision 
officially certifying the annual 
work plan (SK RKT) 

EN 

47 

EN 

 
  
 
 
 
 
 
Principles 

Criteria 

Indicators 

Verifiers 

2.1.2  Business units apply
  a timber tracking
  system and operate
  within permitted
  production levels  

Tally sheets on the use of raw 
materials and on production 
outputs. 

Output reports on the 
production of processed 
products. 

The production of the unit 
does not exceed the permitted 
production capacity.  

Related Regulations 

Regulation of the 
Minister for Forestry 
P55/2006 

Regulation of the 
Minister for Industry 
41/2008  

Regulation of the 
Minister for Forestry 
P35//2008  

EN 

48 

EN 

 
  
 
 
 
Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

2.1.3  Production process

  in collaboration with
  another party
  (another industry or
  with artisans/
  household
  industries) provides
  for tracking of
  timber 

Contract of collaboration or 
service contract for product 
processing with another party 

The collaborating party has 
valid permits as set out under 
Principle 1  

Segregation/ separation of 
produced products. 

Documentation of raw 
materials, processes, 
production and where 
applicable of exports if export 
is conducted through the 
business unit / another 
company with which 
collaboration agreement is 
entered into. 

Regulation of the 
Minister for Trade 
37/M-DAG/PER/9/2007 

Act 6/1983  

Regulation of the 
Minister for Forestry 
P35/2008  

Regulation of the 
Minister for Forestry 
P16/2007  

Regulation of the 
Minister for Trade 
39/M-
DAG/PER/12/2011  

Regulation of the 
Minister for Industry 
41/M- IND/PER/6/2008  

Regulation of the 
Minister for Forestry 
P55/2006 

EN 

49 

EN 

 
  
 
 
 
 
 
 
Principles 

Criteria 

Indicators 

Verifiers 

Related Regulations 

P3.  Legality of the trade
  or the change of
  ownership of
  processed timber.  

K3.1  Inter-island

3.1.1  The business unit

PKAPT documents  

  transportation
  and trade
  complies with
  applicable
  legislation.  

  shipping processed
  timber products
  inter-island are
  Registered Inter-
  island Timber
  Traders (PKAPT). 

PKAPT report documents 

Regulation of the 
Minister for Industry and 
Trade 
68/MPP/Kep/2/2003 

Joint Regulation of the 
Minister for Forestry, 
Minister for 
Transportation, and 
Minister for Industry and 
Trade 22/2003 

3.1.2  The vessel used to
  transport processed
  timber is
  Indonesian-flagged
  and possesses valid
  permits to operate. 

Documents showing identity 
of vessel. Registration 
documents which show the 
identity of the vessel and valid 
permit. 

The identity of vessel agrees 
with that stated in the log or 
timber transport documents  

Regulation of the 
Minister for Forestry 
P55/2006  
Regulation of the 
Minister for Forestry 
P30/2012  
Regulation of the 
Minister for 
Transportation 
KM71/2005 

EN 

50 

EN 

 
  
 
 
 
 
 
 
Principles 

Criteria 

Indicators 

Verifiers 

3.1.3  Registered Inter-
  island Timber
  Traders (PKAPT)
  can demonstrate
  that the transported
  timber originates
  from legitimate
  sources  

Log or timber transport 
documents 

Timber administration 
marks/barcode (PUHH) on 
logs. 

Related Regulations 

Joint Regulation of the 
Minister for Forestry, 
Minister for 
Transportation, and 
Minister for Industry and 
Trade 22/2003 

Regulation of the 
Minister for Forestry 
P55/2006 

Regulation of the 
Minister for Forestry 
P30/2012  

Joint Regulation of the 
Minister for Forestry, 
Minister for 
Transportation, and 
Minister for Industry and 
Trade 22/2003 

EN 

51 

EN 

 
  
 
 
 
 
 
 
 
Principles 

Criteria 

Indicators 

K3.2  Shipping of

3.2.1  Shipping of

  processed
  timber for
  export
  complies with
  applicable
  legislation. 

  processed timber
  for export with
  Export Notification
  (PEB) documents 

Verifiers 

PEB 

Packing list 

Invoice 

B/L (bill of lading) 

Export licence documents (V-
Legal)  

Results of technical 
verification (Surveyor’s 
Report) for products for which 
technical verification is 
mandatory 

Proof of payment of export 
duty, where applicable. 

Other relevant documents 
(including CITES permits) for 
types of wood whose trade is 
restricted  

Related Regulations 

Act 17/2006 (Customs)  

Regulation of the 
Minister for Finance 
223/PMK.011/2008.  

Regulation of the 
Directorate General for 
Customs P-40/BC/2008  

Regulation of the 
Directorate General for 
Customs P-06/BC/2009  

Regulation of the 
Minister for Trade 
P64/2012 

Presidential Decree 
43/1978 

Regulation 
Minister 
447/2003 

of 

the 
for  Forestry 

EN 

52 

EN 

 
  
 
 
 
 
 
Principles 

Criteria 

Indicators 

Verifiers 

P4. Fulfilment of labour

regulations as far 
as  processing industry
concerned 

is 

K.4.1 Fulfilment of 
occupational 
safety and health 
(OSH) 
requirements 

4.1.1  Availability of OSH 
procedures and 
implementation  

K.4.2 Fulfilment of the 
rights of workers 

4.2.1  Freedom of 

association for 
workers  

4.2.2  Existence of 

collective labour 
agreement or 
company policy on 
labour rights 

4.2.3  Company does not 
employ minor/ 
underage workers  

Implementation of OSH 
procedures. 

OSH equipment such as 
lightweight fire extinguishers, 
personal protective equipment 
and evacuation routes 

Employment injury records 

Trade union or a company 
policy that allows employees/ 
workers to establish a trade 
union or get involved in trade 
union activities 

Availability of collective 
labour agreement or company 
policy documents on labour 
rights 

Related Regulations 

Regulation of the 
Minister for Manpower 
& Transmigration 
01/1978 

Regulation of the 
Minister for Forestry 
P12/2009 

Regulation of the 
Minister for Manpower 
& Transmigration 
16/2001 

Act 13/2013 

Regulation of the 
Minister for Manpower 
& Transmigration 
16/2011 

There are no underage workers  Act 13/2003 

Act 23/2003 

Act 20/2009 

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ANNEX III 

CONDITIONS FOR THE RELEASE FOR FREE CIRCULATION IN THE UNION OF 
INDONESIAN FLEGT-LICENSED TIMBER PRODUCTS 

1. 

1.1. 

1.2. 

Lodging of the licence 

The licence shall be lodged with the competent authority of the Union Member State 
in  which  the  shipment  covered  by  that  licence  is  presented  for  release  for  free 
circulation. This can be done electronically or by other expeditious means.  

A licence shall be accepted if it meets all the requirements set out in Annex IV and 
no  further  verification  in  accordance  with  sections  3,  4  and  5  of  this  Annex  is 
deemed necessary. 

1.3. 

A licence may be lodged before the arrival of the shipment it covers.  

2. 

2.1. 

2.2. 

2.3. 

Acceptance of the licence 

Any  licence  which  does  not  meet  the  requirements  and  specifications  set  out  in 
Annex IV is invalid. 

Erasures  in  or  alterations  to  a  licence  shall  only  be  accepted  if  such  erasures  or 
alterations have been validated by the Licensing Authority.  

A licence shall be considered as void if it is lodged with the competent authority after 
the  expiry  date  indicated  in  the  licence.  The  extension  of  the  validity  of  a  licence 
shall  not  be  accepted  unless  that  extension  has  been  validated  by  the  Licensing 
Authority. 

2.4. 

A  duplicate  or  replacement  licence  shall  not  be  accepted  unless  it  has  been  issued 
and validated by the Licensing Authority.  

2.5.  Where  further  information  is  required  on  the  licence  or  on  the  shipment,  in 
accordance  with  this  Annex,  the  licence  shall  be  accepted  only  after  the  required 
information has been received.  

2.6.  Where  the  volume  or  weight  of  the  timber  products  contained  in  the  shipment 
presented for release for free circulation does not deviate by more than ten per cent 
from  the  volume  or  weight  indicated  in  the  corresponding  licence,  it  shall  be 
considered that the shipment conforms to the information provided in the licence in 
so far as volume or weight is concerned. 

2.7. 

3. 

3.1. 

3.2. 

3.3. 

The  competent  authority  shall,  in  accordance  with  the  applicable  legislation  and 
procedures, inform the customs authorities as soon as a licence has been accepted. 

Verification of the validity and authenticity of the licence 

In case of doubt concerning the validity or authenticity of a licence, a duplicate or a 
replacement  licence,  the  competent  authority  may  request  additional  information 
from the Licence Information Unit.  

The Licence Information Unit may request the competent authority to send a copy of 
the licence in question. 

If necessary the Licensing Authority shall withdraw the licence and issue a corrected 
copy  which  will  be  authenticated  by  the  stamped  endorsement  'Duplicate'  and 
forward it to the competent authority. 

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3.4. 

3.5. 

3.6. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

4.6. 

5. 

5.1. 

If no answer is received by the competent authority within twenty-one calendar days 
of  the  request  for  additional  information  from  the  Licence  Information  Unit,  as 
specified  in  section  3.1  of  this  Annex,  the  competent  authority  shall  not  accept  the 
licence and shall act in accordance with applicable legislation and procedures. 

If the validity of the licence is confirmed, the Licence Information Unit shall inform 
the  competent  authority  forthwith,  preferably  by  electronic  means.  The  copies 
returned shall be authenticated by the stamped endorsement 'Validated on'.  

If  following  the  provision  of  additional  information  and  further  investigation,  it  is 
determined that the licence is not valid or authentic the competent authority shall not 
accept  the  licence  and  shall  act  in  accordance  with  applicable  legislation  and 
procedures.  

Verification of the conformity of the licence with the shipment 

If further verification of the shipment is considered necessary before the competent 
authorities can decide whether a licence can be accepted, checks may be carried out 
to establish whether the shipment in question conforms to the information provided 
in  the  licence  and/or  to  the  records  relating  to  the  relevant  licence  held  by  the 
Licensing Authority. 

In case of doubt as to the conformity of the shipment with the licence the competent 
authority  concerned  may  seek  further  clarification  from  the  Licence  Information 
Unit. 

The Licence Information Unit may request the competent authority to send a copy of 
the licence or the replacement in question. 

If necessary, the Licensing Authority shall withdraw the licence and issue a corrected 
copy  which  must  be  authenticated  by  the  stamped  endorsement  'Duplicate'  and 
forwarded to the competent authority. 

If no answer is received by the competent authority within twenty one calendar days 
upon  request  of  the  further  clarification  as  specified  in  section  4.2  above,  the 
competent  authority  shall  not  accept  the  licence  and  shall  act  in  accordance  with 
applicable legislation and procedures.  

If following the provision of additional information and further investigation, it has 
been  determined  that  the  shipment  in  question  does  not  conform  with  the  licence 
and/or to the records relating to the relevant licence held by the Licensing Authority, 
the competent authority shall not accept the licence and shall act in accordance with 
applicable legislation and procedures. 

Other matters 

Costs incurred while the verification is being completed shall be at the expense of the 
importer,  except  where  the  applicable  legislation  and  procedures  of  the  Union 
Member State concerned determine otherwise.  

5.2.  Where persistent disagreements or difficulties arise from the verification of licences 

6. 

6.1. 

the matter may be referred to the JIC. 

EU Customs declaration 

The number of the licence that covers the timber products that are being declared for 
release  for  free  circulation  shall  be  entered  in  Box  44  of  the  Single  Administrative 
Document on which the customs declaration is made. 

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6.2.  Where the customs declaration is made by means of a data-processing technique the 

7. 

7.1. 

reference shall be provided in the appropriate box. 

Release for Free Circulation 

Shipments  of  timber  products  shall  be  released  for  free  circulation  only  when  the 
procedure described in section 2.7 above has been duly completed. 

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REQUIREMENTS AND TECHNICAL SPECIFICATIONS OF FLEGT LICENCES 

ANNEX IV 

1. 

1.1. 

1.2. 

1.3. 

1.4. 

1.5. 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

2.5. 

2.6. 

General requirements of FLEGT licences 

A FLEGT licence may be in paper or electronic form. 

Both  paper-based  and  electronic  licences  shall  provide  the  information  specified  in 
Appendix 1, in accordance with the notes for guidance set out in Appendix 2. 

A  FLEGT  licence  shall  be  numbered  in  a  manner  that  allows  the  Parties  to 
distinguish  between  a  FLEGT  licence  covering  shipments  destined  for  Union 
markets and a V-Legal Document for shipments destined for non-Union markets. 

A FLEGT licence shall be valid from the date on which it is issued. 

The period of validity of a FLEGT licence shall not exceed four months. The date of 
expiry shall be indicated on the licence. 

A FLEGT licence shall be considered void after it has expired. In the event of force 
majeure  or  other  valid  causes  beyond  the  control  of  the  licensee,  the  Licensing 
Authority  may  extend  the  period  of  validity  for  an  additional  two  months.  The 
Licensing Authority shall insert and validate the new expiry date when granting such 
an extension. 

A FLEGT licence shall be considered void and returned to the Licensing Authority if 
the timber products covered by that licence have been lost or destroyed prior to its 
arrival in the Union.  

Technical specifications with regard to paper-based FLEGT licences 

Paper-based licences shall conform to the format set out in Appendix 1. 

The paper size will be standard A4. The paper will have watermarks showing a logo 
that will be embossed on the paper in addition to the seal. 

A FLEGT licence shall be completed in typescript or by computerised means. It may 
be completed in manuscript, if necessary. 

The  stamps  of  the  Licensing  Authority  shall  be  applied  by  means  of  a  stamp. 
However,  an  embossment  or  perforation  may  be  substituted  for  the  Licensing 
Authority stamp.  

The  Licensing  Authority  shall  use  a  tamper-proof  method  to  record  the  quantity 
allocated in such a way as to make it impossible to insert figures or references. 

The  form  shall  not  contain  any  erasures  or  alterations,  unless  those  erasures  or 
alterations  have  been  authenticated  by  the  stamp  and  signature  of  the  Licensing 
Authority. 

2.7. 

A FLEGT licence shall be printed and completed in English.  

3. 

Copies of FLEGT Licences 

3.1. 

A FLEGT licence shall be drawn up in seven copies, as follows: 

i.  an ‘Original’ for the competent authority on white paper; 

ii.  a ‘Copy for Customs at destination’ on yellow paper; 

iii.  a ‘Copy for the Importer’ on white paper; 

iv.  a ‘Copy for the Licensing Authority’ on white paper; 

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v.  a ‘Copy for the Licensee’ on white paper; 

vi.  a ‘Copy for the Licence Information Unit’ on white paper;  

vii. a ‘Copy for Indonesian Customs’ on white paper 

The copies marked ‘Original’, ‘Copy for Customs at destination’ and ‘Copy for the 
Importer’  shall  be  given  to  the  licensee,  who  shall  send  them  to  the  importer.  The 
importer shall lodge the original with the competent authority and the relevant copy 
with the customs authority of the Member State of the Union in which the shipment 
covered  by  that  licence  is  declared  for  release  for  free  circulation.  The  third  copy 
marked ‘Copy for the Importer’ shall be retained by the importer for the importer’s 
records.  

The fourth copy marked 'Copy for the Licensing Authority’ shall be retained by the 
Licensing  Authority  for  its  records  and  for  possible  future  verification  of  licences 
issued. 

The fifth copy marked 'Copy for the Licensee' shall be given to the licensee for the 
licensee’s records. 

The sixth copy marked ‘Copy for the Licence Information Unit’ shall be given to the 
Licence Information Unit for its records. 

The  seventh  copy  marked  ‘Copy  for  Indonesian  Customs’  shall  be  given  to  the 
customs authority of Indonesia for exportation purposes. 

FLEGT licence lost, stolen or destroyed  

In  the  event  of  loss,  theft  or  destruction  of  the  copy  marked  ‘Original’  or  the  copy 
marked  ‘Copy  for  Customs  at  destination’  or  both,  the  licensee  or  the  licensee’s 
authorised  representative  may  apply  to  the  Licensing  Authority  for  a  replacement. 
Together with the application, the licensee or the licensee’s authorised representative 
shall provide an explanation for the loss of the original and/or the copy. 

If  it  is  satisfied  with  the  explanation,  the  Licensing  Authority  shall  issue  a 
replacement  licence  within  five  working  days  of  receipt  of  the  request  from  the 
licensee. 

The  replacement  shall  contain  the  information  and  entries  that  appeared  on  the 
licence  it  replaces,  including  the  licence  number,  and  shall  bear  the  endorsement 
'Replacement Licence'. 

In the event that the lost or stolen licence is retrieved, it shall not be used and must be 
returned to the Licensing Authority.  

Technical specifications with regard to electronic FLEGT licences 

The FLEGT licence may be issued and processed using electronic systems.  

In Member States of the Union which are not linked to an electronic system a paper-
based licence shall be made available. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

5. 

5.1. 

5.2. 

APPENDICES 

1. 

2. 

Licence Format 

Notes for Guidance. 

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Appendix 1: Licence Format 

EN 

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Appendix 2 Notes for Guidance 

General: 

– 

– 

– 

– 

Complete in capitals. 

ISO codes, where indicated, refer to the international standard two letter code for any 
country. 

Box 2 is for use by the Indonesian authorities only 

Headings A and B for use of FLEGT licensing to the EU only 

Heading A  Destination 

Insert  'European  Union'  if  the  licence  covers  a  shipment 
destined for the European Union.  

Heading B 

FLEGT licence 

Insert  'FLEGT'  if  the  licence  covers  a  shipment  destined  for 
the European Union. 

Box 1 

Issuing authority 

Indicate  the  name,  address,  and  registration  number  of  the 
Licensing Authority. 

Box 2 

Information  for  use 
by Indonesia 

Indicate the name and address of the importer, the total value 
(in USD) of the shipment, as well as the name and the two-
letter  ISO  code  of  the  country  of  destination  and  where 
applicable of the country of transit.  

Box 3  

V-Legal/licence 
number  

Indicate the issuing number. 

Box 4 

Date of expiry 

Period of validity of the licence. 

Box 5 

Country of export 

This  refers  to  the  partner  country  from  where  the  timber 
products were exported to the EU. 

Box 6 

ISO code 

Indicate  the  two-letter  ISO  code  for  the  partner  country 
referred to in Box 5. 

Box 7 

Means of transport 

Indicate the means of transport at the point of export. 

Box 8 

Licensee 

Indicate the name and address of the exporter,  including the 
registered exporter ETPIK and tax payer numbers. 

Box 9 

Commercial 
Description 

Indicate the commercial description of the timber product(s). 
The  description  should  be  sufficiently  detailed  to  allow  for 
classification into the HS. 

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Box 10  

HS code 

Box 11 

Common and 
scientific names 

Box 12 

Countries of harvest 

Box 13 

ISO codes 

For  the  ‘Original’,  ‘Copy  for  Customs  at  Destination’  and 
‘Copy  for  Importer’  indicate  the  four-digit  or  six-digit 
commodity  code  established  pursuant  to  the  Harmonised 
Commodity  Description  and  Coding  System.  For  copies  for 
use within Indonesia (copies (iv) to (vii) as set out in Article 
3.1  of  Annex  IV)  indicate  the  ten-digit  commodity  code  in 
accordance with the Indonesia Customs Tariff Book. 

Indicate  the  common  and  scientific  names  of  the  species  of 
timber  used  in  the  product.  Where  more  than  one  species  is 
included in a composite product, use a separate line. May be 
omitted  for  a  composite  product  or  component  that  contains 
multiple  species  whose  identity  has  been  lost  (e.g.  particle 
board). 

Indicate the countries where the species of timber referred to 
in Box 10 was harvested. Where a composite product include 
for all sources of wood used. May be omitted for a composite 
product  or  component  that  contains  multiple  species  whose 
identity has been lost (e.g. particle board). 

Indicate the ISO code of the countries referred to in box 12. 
May  be  omitted  for  a  composite  product  or  component  that 
contains  multiple  species  whose  identity  has  been  lost  (e.g. 
particle board). 

Box 14 

Volume (m3) 

Indicate the overall volume in m3. May be omitted unless the 
information referred to in box 15 has been omitted.  

Box 15 

Net weight (kg) 

Indicate  the  overall  weight  of  the  shipment  at  the  time  of 
measurement  in  kg.  This  is  defined  as  the  net  mass  of  the 
timber  products  without 
immediate  containers  or  any 
packaging, other than bearers, spacers, stickers etc. 

Box 16 

Number of units 

Indicate  the  number  of  units,  where  a  manufactured  product 
is best quantified in this way. May be omitted. 

Box 17 

Distinguishing marks

Insert  barcode  and  any  distinguishing  marks  where 
appropriate  e.g.  lot  number,  bill  of  lading  number.  May  be 
omitted.  

Box 18 

Signature  and  stamp 
of issuing authority 

The  box  shall  be  signed  by  the  authorised  official  and 
stamped  with  the  official  stamp  of  the  Licensing  Authority. 
The signatories' name, as well as place and date shall also be 
indicated. 

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INDONESIAN TIMBER LEGALITY ASSURANCE SYSTEM  

ANNEX V 

1. 

Introduction 

Objective:  To  provide  assurance  that  harvesting,  transportation,  processing  and 
selling  of  round  logs  and  processed  timber  products  comply  with  all  relevant 
Indonesian laws and regulations. 

Known for its pioneering role in combating illegal logging and the trade in illegally 
harvested  timber  and  timber  products,  Indonesia  hosted  the  East  Asia  Ministerial 
Conference  on  Forest  Law  Enforcement  and  Governance  (FLEG)  in  Bali,  in 
September 2001, which resulted in the Declaration on Forest Law Enforcement and 
Governance’  (Bali  Declaration).  Since  then,  Indonesia  has  continued  to  be  at  the 
forefront  of  international  cooperation  in  combating  illegal  logging  and  associated 
trade. 

As  part  of  international  efforts  to  address  these  issues,  a  growing  number  of 
consumer countries have committed themselves to take measures to prevent trade in 
illegal timber on their markets, whilst producer countries have committed themselves 
to provide a mechanism assuring the legality of their timber products. It is important 
to establish a credible system to guarantee the legality of harvesting, transportation, 
processing and trade of timber processed timber products. 

The Indonesian Timber Legality Assurance System (TLAS) provides assurance that 
timber  and  timber  products  produced  and  processed  in  Indonesia  come  from  legal 
sources and are in full compliance with relevant Indonesian laws and regulations, as 
verified by independent auditing and monitored by civil society.  

1.1. 

Indonesian laws and regulations as foundation of the TLAS 

The  Indonesian  regulation  on  the  ‘Standards  and  Guidelines  on  the  Assessment  of 
Performance  of  Sustainable  Forest  Management  and  the  Verification  of  Timber 
Legality  in  the  State  and  Privately-owned  Forests’  (Forestry  Minister’s  Regulation 
P.38/Menhut-II/2009)  establish  the  TLAS  as  well  as  the  sustainability  scheme 
(SFM), to improve forest governance; to suppress illegal logging and the associated 
timber  trade  and  to  ensure  the  credibility  and  improve  the  image  of  Indonesia’s 
timber products.  

The TLAS comprises the following elements:  

1. 

2. 

Legality Standards, 

Control of Supply Chain, 

3.  Verification Procedures, 

4. 

Licensing Scheme,  

5.  Monitoring. 

TLAS is the basic system used to assure the legality of timber and timber products 
produced in Indonesia for export to the Union and to other markets. 

1.2. 

Development of the TLAS: a multi-stakeholder process  

Since  2003,  a  wide  range  of  Indonesian  forestry  stakeholders  have  been  actively 
engaged  in  developing,  implementing  and  evaluating  the  TLAS,  thereby  providing 
better  oversight,  transparency  and  credibility  in  the  process.  In  2009,  the  multi-

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stakeholder  process  resulted  in  the  issuance  of  Forestry  Minister’s  Regulation 
P.38/Menhut-II/2009,  followed  by  DG  Forest  Utilization  Technical  Guidelines 
No.6/VI-SET/2009 and No.02/VI-BPPHH/2010.  

2. 

Scope of the TLAS 

Indonesian forest resources can broadly be divided into two types of ownership: state 
forests and privately owned forests/lands. State forests consist of production forests 
for  long-term  sustainable  timber  production  under  a  variety  of  permit  types  and 
forest areas that can be converted for non-forestry purposes such as for settlement or 
plantations.  The  application  of  TLAS  on  state  forests  and  privately  owned 
forests/lands is set out in Annex II.  

The  TLAS  covers  timber  and  timber  products  from  all  permit  types  as  well  as  the 
operations of all timber traders, downstream processors and exporters.  

The TLAS requires that imported timber and timber products are cleared at customs 
and  comply  with  Indonesia’s  import  regulations.  Imported  timber  and  timber 
products must be accompanied by documents providing assurance of the legality of 
the timber in its country of harvest. Imported timber and timber products will have to 
enter  into  a  controlled  supply  chain  that  complies  with  the  Indonesian  rules  and 
regulations. Indonesia will provide guidance on how to implement the above.  

Certain timber products may contain recycled materials. Indonesia provides guidance 
on how the use of recycled materials will be dealt with under the TLAS.  

Impounded timber is not included in the TLAS and therefore cannot be covered by a 
FLEGT licence.  

The TLAS  covers  timber products destined for  domestic and international  markets. 
All  Indonesian  producers,  processors,  and  traders  (operators)  will  be  verified  for 
legality, including those supplying the domestic market.  

2.1. 

TLAS legality standards 

The TLAS has five timber legality standards. These standards and their verification 
guidelines are set out in Annex II. 

The  TLAS  also  incorporates  the  ‘Standard  and  Guidelines  on  Assessment  of 
Performance  in  Sustainable  Forest  Management  (SFM)’.  The  assessment  of 
sustainable forest management using the SFM standard also verifies that the auditee 
complies  with  the  relevant  legality  criteria.  SFM-certified  organisations  operating 
within  production  forest  zones  on  state-owned  lands  (permanent  forest  domain) 
adhere to both relevant legality and SFM standards.  

3. 

Control of the Timber Supply Chain 

The permit holder (in the case of concessions) or landowner (in the case of private 
land) or company (in the case of traders, processors and exporters) shall demonstrate 
that every node of their supply chain is controlled and documented as set out in the 
Minister  for  Forestry  Regulations  P.55/Menhut-II/2006  and  P.30/Menhut-II/2012 
(hereinafter referred to as the Regulations). These Regulations require provincial and 
district  forestry  officials  to  undertake  field  verification  and  validate  the  documents 
which are submitted by permit holders, landowners, or processors at each node of the 
supply chain.  

The  operational  controls  at  each  point  in  the  supply  chain  are  summarised  in 
Diagram 1; the guidance for imports is being developed. 

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All  consignments  in  the  supply  chain  must  be  accompanied  by  relevant  transport 
documents. Companies must apply appropriate systems to segregate between timber 
and  timber  products  from  verified  sources  with  timber  and  timber  products  from 
other  sources,  and  maintain  records  that  distinguish  between  these  two  sources. 
Companies  at  each  point  in  the  supply  chain  are  required  to  record  whether  the 
involved logs, products or timber consignment are TLAS-verified.  

Operators  in  the  supply  chain  are  required  to  keep  records  on  received,  stored, 
processed  and  delivered  timber  and  timber  products  so  as  to  enable  subsequent 
reconciliation  of  quantitative  data  between  and  within  nodes  of  the  supply  chain. 
Such data shall be made available for provincial and district forestry officials to carry 
out reconciliation tests. Main activities and procedures, including reconciliation, for 
each stage of the supply chain are further explained in the Appendix of this Annex. 

Payment of 
fees 

Log listing 

Transport 
documents 

Log balance 
t

Log yard 

Transport 
document 

Log balance 
report 

Intermediate log 
yard 

Timber 
cruising 

Annual work 
plan 

Log listing 

Log felling 
report 

Felling site 

Log landing 

State forests 

Private forests 

Felling site 

Log landing 

Land title 

Log listing 

Transport 
documents 

Log balance 
report 

Tally sheet 

Processed 
products 
balance report 

Transport 
t
d

Primary 
processing 

Registered 
exporter’s 
certificate to 
trade in forest 
industry 
products

Raw material 
balance report 

Tally sheet 

Processed 
products 
balance report 

Transport 
documents 

Export 
declaration 

Customs 
clearance

Secondary 
processing 

Point of 
export 

Registered 
exporter’s 
certificate to 
trade in forest 
industry 
products 

Diagram 1: Control of the supply chain which shows the required key documents at 
each point in the supply chain. 

4. 

Institutional set-up for Legality Verification and Export Licensing 

4.1. 

Introduction 

The Indonesian TLAS is based on an approach known as 'operator-based licensing' 
which  has  much  in  common  with  product  or  forest  management  certification 
systems.  The  Indonesian  Ministry  of  Forestry  nominates  a  number  of  conformity 
assessment bodies (LP and LV) which it authorizes to audit the legality of operations 
of timber producers, traders, processors and exporters ('operators').  

The conformity assessment bodies (CAB) are accredited by the Indonesian National 
Accreditation  Body  (KAN).  CAB  are  contracted  by  operators  who  want  their 
operations  to  be  certified  as  legal  and  are required  to  operate  according  to  relevant 
ISO  guidelines.  They  report  the  outcome  of  the  audits  to  the  auditee  and  to  the 
Ministry of Forestry.  

The CAB ensure that the auditees operate in compliance with the Indonesian legality 
definition  as  contained  in  Annex  II,  including  controls  to  prevent  material  from 
unknown  sources  entering  their  supply  chains.  When  an  auditee  is  found  to  be 
compliant, a legality certificate with a validity of 3 (three) years is issued.  

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LVs  also  act  as  export  licensing  authorities  and  check  verified  exporters'  supply 
chain control systems. If compliant, they issue export licences in the form of V-Legal 
Documents. Thus exports without an export permit are prohibited. 

Indonesia  has  enacted  a  regulation  which  allows  civil  society  groups  to  raise 
objections on the legality verification of an operator by CAB or in the event of illegal 
activities detected during operations. In case of complaints about the operations of a 
conformity assessment body, civil society groups can file complaints with KAN.  

The  relationship  between  different  entities  involved  in  implementing  the  TLAS  is 
2:
illustrated 

Diagram 

in 

Government (Ministry of Forestry) as regulatory body   

Accreditation body (KAN) 

complaints 

Independent Monitor (CSO) 

Accreditation 
certificate  

   accreditation 

Conformity Assessment 
Body/ Licensing Authority 

complaints  

Timber legality 
or SFM certificate  

audit 

appeal  

V-Legal Document
or FLEGT licence 

Auditee

4.2. 

Conformity assessment bodies  

The conformity assessment bodies play a key role in the Indonesian system. They are 
contracted to verify the legality of the production, processing and trade activities of 
individual companies in the supply chain, including the integrity of the supply chain. 
LV also issue V-Legal Documents for individual shipments of exported timber. 

the  performance  of  Forest  Management  Units  (FMUs)  against 

There  are  two  types  of  CAB:  (i)  assessment  bodies  (Lembaga  Penilai/LP)  which 
audits 
the 
sustainability standard; and (ii) verification bodies (Lembaga Verifikasi/LV), which 
audit FMUs and forest-based industries against the legality standards.  

In order to ensure those audits that verify the legality standards as set out in Annex II 
are  of  the  highest  quality,  the  LP  and  LV  are  required  to  develop  the  necessary 
management 
impartiality, 
transparency,  and  assessment  process  requirements  as  outlined  in  ISO/IEC  17021 
(SFM  Standard  for  LPs)  and/or  ISO/IEC  Guide  65  (Legality  Standards  for  LVs). 
These requirements are specified in the TLAS Guidelines.  

competency, 

consistency, 

addressing 

systems 

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LVs can also act as Licensing Authorities. In this case the LVs issue export licences 
to cover  timber  products destined to international markets. For non-Union markets, 
the  Licensing  Authorities  will  issue  V-Legal  Documents,  and  as  for  the  Union 
market,  FLEGT  licenses  will  be  issued  in  accordance  with  the  requirements  as 
outlined  in  Annex  IV.  Indonesia  is  developing  detailed  procedures  for  the  V-Legal 
Document or FLEGT licensing of export consignments. 

The  LVs  are  contracted  by  the  auditees  to  carry  out  legality  audits  and  will  issue 
TLAS legality certificates and V-Legal document or FLEGT licences for exports to 
international markets. LPs will audit timber producing concessions against the SFM 
standard. LPs do not issues export licences. 

4.3. 

Accreditation body 

The Indonesian National Accreditation Body (Komite Akreditasi Nasional - KAN) is 
responsible  for  the  accreditation  of  CAB.  In  case  of  problem  with  a  LP  or  LV, 
complaints can be submitted to the KAN. 

On  14  July  2009,  the  KAN  signed  a  Memorandum  of  Understanding  with  the 
Ministry  of  Forestry  to  provide  accreditation  services  for  the  TLAS.  KAN  is  an 
independent  accreditation  body  established 
through  Government  Regulation 
(Peraturan  Pemerintah/PP)  102/2000  concerning  National  Standardisation  and 
Presidential  Decree  (Keputusan  Presiden/Keppres)  78/2001  regarding  the  National 
Accreditation Committee.  

The KAN operates under the guidance of ISO/IEC 17011 (General Requirements for 
Accreditation Bodies Accrediting Conformity Assessment Bodies). It has developed 
internal TLAS-specific supporting documents for the accreditation of LPs (DPLS 13) 
and LVs (DPLS 14). In addition, the KAN will develop requirements and guidance 
for the accreditation of LVs for export licensing. 

KAN  is  internationally  recognised  by  the  Pacific  Accreditation  Cooperation  (PAC) 
and  the  International  Accreditation  Forum  (IAF)  to  accredit  certification  bodies  for 
Quality  Management  Systems,  Environmental  Management  Systems  and  Product 
Certification. KAN is also recognised by the Asia Pacific Laboratory Accreditation 
Cooperation  (APLAC)  and  the  International  Laboratory  Accreditation  Cooperation 
(ILAC).  

4.4. 

Auditees 

Auditees are operators which are subject to legality verification. They include forest 
management units (concessionaires or timber utilization permit holders, community-
based forest permit holders, private forest/land owners) and forestry-based industries. 
The  forest  management  units  and  forest-based  industries  must  comply  with  the 
applicable  TLAS  standard.  For  export  purposes,  the  forest-based  industries  must 
comply  with  export  licensing  requirements.  The  system  allows  auditees  to  submit 
appeals to the LP or LV on the conduct of or results of audits.  

4.5. 

Independent monitor 

Civil  society  plays  a  key  role  in  the  Independent  Monitoring  (IM)  of  the  TLAS. 
Findings  from  the  Independent  Monitor  can  also  be  used  as  part  of  the  Periodic 
Evaluation (PE) which is required under this Agreement. 

In the event of an assessment-related irregularity, complaints by civil society shall be 
submitted directly to the concerned LP or LV. If no appropriate response is given to 
the complaints, civil society entities may file a report to the KAN. For accreditation-

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related irregularities, complaints shall be submitted directly to the KAN. Whenever 
civil society entities discover wrongdoings by operators, they can lodge complaints 
with the relevant LP or LV.  

4.6. 

The Government  

The  Ministry  of  Forestry  regulates  the  TLAS  and  authorises  the  accredited  LPs  to 
undertake SFM assessment and LVs to undertake legality verification and to issue V-
Legal Documents. 

Furthermore,  the  Ministry  of  Forestry  also  regulates  the  Licence  Information  Unit 
(LIU)  as  a  unit  responsible  for  information  exchange  which  receives  and  stores 
relevant  data  and  information  on  the  issuance  of  V-Legal  Documents  and  which 
responds to queries from competent authorities or stakeholders.  

5. 

Legality Verification 

5.1. 

Introduction  

Indonesian timber is deemed legal when its origin and production process as well as 
subsequent  processing,  transport  and  trade  activities  are  verified  as  meeting  all 
applicable  Indonesian  laws  and  regulations,  as  set  out  in  Annex  II.  LVs  carry  out 
conformity assessments to verify compliance. 

5.2. 

Legality verification process 

In  accordance  with  ISO/IEC  Guide  65  and  the  TLAS  Guidelines,  the  legality 
verification process consists of the following: 

Application and contracting: The permit holder submits to the LV an application that 
defines  the  scope  of  verification,  permit  holder’s  profile  and  other  necessary 
information.  A  contract  between  the  permit  holder  and  the  LV,  setting  out  the 
conditions for verification, is required prior to the commencement of the verification 
activities. 

Verification  plan:  After  the  signing  of  the  verification  contract,  the  LV  prepares  a 
verification  plan,  which  includes  nomination  of  the  audit  team,  verification 
programme and schedule of activities. The plan is communicated to the auditee and 
the  dates  of  verification  activities  agreed  upon.  This  information  shall  be  made 
available in advance for the independent monitors through the websites of LVs and 
the Ministry of Forestry or mass media. 

Verification  activities:  The  verification  audit  consists  of  three  stages:  (i)  opening 
audit  meeting,  (ii)  document  verification  & field  observation  and  (iii)  closing  audit 
meeting. 

• 

• 

Opening audit meeting: the audit’s objective, scope, schedule and methodology 
are discussed with the auditee, so as to allow the auditee to raise questions on 
methods and conduct of verification activities; 

Document verification and field observation stage: in order to collect evidence 
on  the  auditee’s  compliance  with  the  Indonesian  TLAS  requirements,  LV 
checks the auditee’s systems and procedures, relevant documents and records. 
LV carries out field checks to verify compliance, including cross-checking the 
findings  of  official  inspection  reports.  LV  also  checks  the  auditee’s  timber 
traceability system to ensure that, with adequate evidence, all timber meets the 
legality requirements.  

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• 

Closing  audit  meeting:  the  verification  results,  in  particular  any  non-
compliances  that  may  be  detected,  are  presented  to  the  auditee.  The  auditee 
may raise questions on the verification results and provide clarification on the 
evidence presented by the LV. 

Reporting  and  decision  making:  The  audit  team  draws  up  a  verification  report, 
following a structure provided by the Ministry of Forestry. The report is shared with 
the auditee within fourteen calendar days after the closing audit meeting. A copy of 
the  report,  which  includes  a  description  of  any  findings  of  non-compliances,  is 
submitted to the Ministry of Forestry. 

The report is used primarily to decide on the outcome of the verification audit by the 
LV. The LV takes the decision on whether to issue a legality certificate based on the 
verification report prepared by the audit team. 

In  cases  of  non-compliance,  the  LV  will  refrain  from  issuing  a  legality  certificate, 
which will prevent the timber from entering the supply chain of verified legal timber. 
Once  the  non-compliance  has  been  addressed,  the  operator  may  resubmit  a  request 
for legality verification.  

Infringements,  which  are  discovered  by  LV  during  the  verification  and  reported  to 
the  Ministry  of  Forestry,  shall  be  handled  by  the  responsible  authorities  in 
accordance with administrative or judicial procedures. If an operator is suspected of 
breaching regulations, the national, provincial and district authorities may decide to 
halt the operator’s activities. 

Issuance  of  the  legality  certificate  and  recertification:  the  LV  will  issue  a  legality 
certificate  if  an  auditee  is  found  to  comply  with  all  the  indicators  in  the  legality 
standard, including the rules on control of the timber supply chain.  

The  LV  may  report  at  any  time  to  the  Ministry  of  Forestry  on  issued,  changed, 
suspended  and  withdrawn  certificates  and  every  three  months  shall  issue  a  report. 
The Ministry of Forestry will then publish these reports on its website.  

A legality certificate is valid for a period of three years, after which the operator is 
subject  to  a  re-certification  audit.  The  re-certification  shall  be  done  prior  to  the 
expiry date of the certificate. 

Surveillance: Operators with a legality certificate are subject to annual surveillance 
that  follow  the  principles  of  the  verification  activities  summarised  above.  The  LV 
may also carry out surveillance earlier than scheduled before the annual audit if the 
scope of the verification has been extended. 

The surveillance team draws up a surveillance report. A copy of the report, including 
a description of any non-compliance found, is submitted to the Ministry of Forestry. 
Non-compliances  detected  by  the  surveillance  will  result  in  to  suspension  or 
withdrawal of the legality certificate. 

Infringements  discovered  by  the  LV  during  the  surveillance  and  reported  to  the 
Ministry of Forestry shall be handled by the relevant authorities, in accordance with 
administrative or judicial procedures.  

Special  audits:  Operators  with  a  legality  certificate  are  obliged  to  report  to  the  LV 
any  significant  changes  in  ownership,  structures,  management,  and  operations  that 
affect  the  quality  of  its  legality  controls  during  the  period  of  validity  of  the 
certificate.  The  LV  may  carry  out  special  audits  to  investigate  any  complaints  or 
disputes  filed  by  the  independent  monitors,  government  institutions  or  other 

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stakeholders  or  upon  receipt  of  the  operator’s  report  on  changes  that  affect  the 
quality of its legality controls  

5.3. 

Government responsibility for enforcement 

The  Ministry  of  Forestry,  as  well  as  provincial  and  district  forestry  offices  are 
responsible  for  the  control  of  timber  supply  chains  and  checking  of  related 
documents  (e.g.  annual  work  plans,  log  felling  reports,  log  balance-sheet  reports, 
transport documents, logs/raw material/processed products balance-sheet reports and 
production  tally  sheets).  In  the  event  of  inconsistencies,  forestry  officials  may 
withhold approval of the control documents resulting in a suspension of operations.  

Infringements  detected  by  forestry  officials  or  by  independent  monitors  are 
communicated  to  the  LV,  which  upon  verification  may  lead  the  LV  to  suspend  or 
withdraw  the  awarded  legality  certificate.  Forestry  officials  may  take  appropriate 
follow-up action in accordance with the regulatory procedures.  

The  Ministry  of  Forestry  also  receives  copies  of  the  verification  reports  and 
subsequent  surveillance  and  special  audit  reports  issued  by  the  LVs.  Infringements 
discovered by the LVs, by forestry officials or by independent monitors are handled 
in accordance with administrative and judicial procedures. If an operator is suspected 
of breaching regulations, the national, provincial and district authorities may decide 
to suspend or halt the operator’s activities. 

6. 

FLEGT Licensing  

The  Indonesian  FLEGT  licence  is  known  as  the  “V-Legal  Document”.  This  is  an 
export  licence  that  provides  evidence  that  the  timber  products  exported  meet  the 
Indonesian legality standard as set out in Annex II and were sourced from a supply 
chain  with  adequate  controls  against  the  inflow  of  timber  from  unknown  sources. 
The V-Legal Document is issued by the LVs who act as Licensing Authorities and 
will  be  used  as  a  FLEGT  licence  for  shipments  to  the  Union  once  the  parties  have 
agreed to start the FLEGT licensing scheme. 

Indonesia  will  clearly  define  the  procedures  for  issuing  V-Legal  Documents  and 
communicate  these  procedures  to  the  exporters  and  any  other  parties  concerned 
through  its  licensing  authorities  (the  LVs)  and  the  website  of  the  Ministry  of 
Forestry. 

The  Ministry  of  Forestry  has  established  a  Licence  Information  Unit  to  maintain  a 
database with copies of all V-Legal Documents and LV non-compliance reports. In 
the event of an inquiry concerning the authenticity, completeness, and validity of the 
V-Legal  Document  or  FLEGT  licence,  the  competent  authorities  in  the  Union  will 
contact  the  Licence  Information  Unit  in  the  Ministry  of  Forestry  for  further 
clarification.  This  unit  will  communicate  with  the  relevant  LV.  The  Licence 
Information  Unit  will  respond  to  the  competent  authorities  upon  receipt  of  the 
information from the LV. 

The  V-Legal  Document  is  issued  at  the  point  at  which  the  export  consignment  is 
established  prior  to  the  transportation  to  the  point  of  export.  The  procedure  is  as 
follows: 

6.1. 

6.2. 

The  V-Legal  Document  is  issued  by  the  LV,  which  holds  a  contract  with  the 
exporter, for the consignment of timber products to be exported. 

The exporter’s internal traceability system shall provide evidence on the legality of 
timber for export licensing. This system shall at minimum cover all the supply chain 

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related  controls  from  the  stage  where  the  raw  materials  (such  as  logs  or  semi-
processed products) were dispatched to the processing mill, within the mill site itself 
and from the mill to the point of export. 

6.2.1.  With  regard  to  the  primary  industry,  the  exporter’s  traceability  system  shall  at 
minimum  cover  transportation  from  the  log  landing  or  log  yard  and  all  the 
subsequent stages until the point of export. 

6.2.2.  With  regard  to  the  secondary  industry,  the  traceability  system  shall  at  minimum 
cover  transportation  from  the  primary  industry  and  all  subsequent  stages  until  the 
point of export. 

6.2.3. 

6.2.4. 

If managed by the exporter, any previous stage of the supply chain as referred to in 
6.2.1 and 6.2.2 shall also be included in the exporter’s internal traceability system. 

If managed by a legal entity than the exporter, the LV shall verify that the previous 
stages  of  the  supply  chain  as  referred  to  in  6.2.1  and  6.2.2  are  controlled  by  the 
exporter’s  supplier(s)  or  sub-supplier(s),  and  that  the  transport  documents  state 
whether  the  timber  originates  or  does  not  originate  from  a  felling  site  that  has  not 
been certified for legality.  

6.2.5.  For  a  V-Legal  Document  to  be  issued,  all  suppliers  in  the  exporter’s  supply  chain 
that  make  up  the  consignment  must  have  been  covered  by  a  valid  legality  or  SFM 
certificate and must demonstrate that at all stages in the supply chain the supply of 
legally verified timber has been kept segregated from supplies not covered by a valid 
legality or SFM certificate. 

6.3. 

To obtain a V-Legal Document, a company must be a registered exporter (an ETPIK 
holder) who possesses a valid legality certificate. The ETPIK holder submits a letter 
of  application  to  the  LV  and  attaches  the  following  documents  to  demonstrate  that 
the timber raw materials in the product originate only from verified legal sources: 

6.3.1.  A summary of the transport documents for all timber/raw materials received by the 

factory since the last audit (up to max twelve months); and 

6.3.2.  Summaries  of  Timber/Raw  Material  Balance-Sheet  Reports  and  Processed  Timber 

Balance-Sheet Reports since the last audit (up to max twelve months); 

6.4. 

The LV then carries out the following verification steps: 

6.4.1.  Data reconciliation based on the summaries of the transport documents, Timber/Raw 
Material Balance-Sheet Report, and Processed Timber Balance-Sheet Report; 

6.4.2.  Control  of  the  recovery  rate(s)  for  each  type  of  product,  based  on  analysis  of  the 
Timber/Raw  Material  Balance-Sheet  Report  and  Processed  Timber  Balance-Sheet 
Report; 

6.4.3.  Where  necessary,  a  field  visit  may  be  conducted  after  data  reconciliation  so  as  to 
ensure  consistency  with  the  information  to  be  specified  in  the  V-Legal  Document. 
This may be done through export consignments sample checking and inspecting the 
factory operation and record-keeping. 

6.5. 

Result of verification: 

6.5.1. 

If an ETPIK holder complies  with legality and supply  chain  requirements, then the 
LV issues a V-Legal Document in the format presented in Annex IV; 

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6.5.2.  An  ETPIK  holder  meeting  the  above  mentioned  requirements  is  allowed  to  use 
conformity  marking  on  the  products  and/or  packaging.  Guidelines  on  the  use  of 
conformity marking have been developed. 

6.5.3. 

If an ETPIK holder does not comply with the legality and supply chain requirements, 
LV will issue a non-compliance report instead of V-Legal Document. 

6.6. 

The LV shall:  

6.6.1.  Forward a copy of a V-Legal Document or non-compliance report to the Ministry of 

Forestry within twenty four hours from the time the decision was taken; 

6.6.2.  Submit a comprehensive report and a public summary report outlining the number of 
V-Legal  Documents  issued  as  well  as  the  number  and  type  of  non-compliances 
detected  to  the  Ministry  of  Forestry  once  every  three  months  with  copies  to  KAN, 
Ministry of Trade, and Ministry of Industry;  

7. 

Monitoring 

The  Indonesian  TLAS  includes  civil  society  monitoring  (Independent  Monitoring) 
and  Comprehensive  Evaluation  (CE).  To  make  the  system  even  more  robust  for  a 
FLEGT-VPA, a Period Evaluation (PE) component is added. 

IM is carried out by civil society to assess compliance of the operators, LPs, and LVs 
with  the  Indonesian  TLAS  requirements  including  accreditation  standards  and 
guidelines.  Civil  society  is  defined  in  this  context  as  Indonesian  legal  entities 
including forestry NGOs, communities living in and around the forest, and individual 
Indonesian citizens. 

CE is carried out by multi-stakeholder team which review the Indonesian TLAS and 
identify  gaps  and  possible  system  improvements  as  mandated  by  the  Ministry  of 
Forestry.  

The objective of PE is to provide independent assurance that the Indonesian TLAS is 
functioning  as  described,  thereby  enhancing  the  credibility  of  the  FLEGT  licences 
issued. PE makes use of the findings and recommendations of IM and CE. Terms of 
Reference for PE are set out in Annex VI. 

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Appendix – Control of the Supply Chain 

1. 

Description  of  the  operational  control  of  the  supply  chain  for  timber  from  state-
owned forests 

1.1. 

Felling Site 

(a)  Main activities: 

– 

– 

– 

– 

– 

– 

Timber cruising (enumeration of trees) by the permit holder;  

Preparation of a Timber Cruising Report by the permit holder;  

Verification and approval of the Timber Cruising Report by the district forestry 
official; 

Submission of a Proposed Annual Work Plan by the permit holder; 

Approval of the Annual Work Plan by the provincial forestry official; 

Harvesting  operations  by  the  permit  holder,  including  skidding  of  logs  to  the 
log-landing site. 

(b)  Procedures: 

– 

– 

– 

– 

– 

– 

Timber cruising (enumeration of trees) is conducted by the permit holder using 
tags.  These  tags  are  made  up  of  three  detachable  sections,  attached  to  the 
stump,  harvested  log,  and  the  operator  report.  Each  section  contains  the 
necessary information required for timber tracking, including the number of the 
tree and its location ; 

The  permit  holder  prepares  a  Timber  Cruising  Report,  which  contains 
information  on 
the  number,  estimated  volume,  preliminary  species 
identification  and  location  of  trees  to  be  harvested,  and  a  summary,  using 
official Ministry of Forestry Forms; 

The permit  holder submits the Timber Cruising Report to the district forestry 
official. The official conducts both a document-based and field verification of 
the Timber Cruising Report on a sample basis. The official approves the Report 
if all is in order; 

The Timber Cruising Report provides the basis for the Proposed Annual Work 
Plan,  which  is  prepared  by  the  permit  holder  and  submitted  to  the  provincial 
forestry officer for review and approval. The official reviews and cross-checks 
the Proposed Annual Work Plan against the approved Timber Cruising Report 
and approves the work plan if all is in order; 

Once  the  Annual  Work  Plan  is  approved  by  the  official,  the  permit  holder  is 
allowed to commence harvesting operations; 

During  harvesting  operations,  tags  are  used  to  ensure  that  the  log  is  from  an 
approved felling site, as described above. 

1.2. 

Log-Landing Site 

(a)  Main activities: 

–  Where necessary, cross cutting of the logs by the permit holder, and marking of 

such logs so as to ensure consistency with the Log Production Report; 

– 

Scaling (measurement) and grading of logs by the permit holder; 

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– 

– 

– 

Preparation of a log-list by the permit holder; 

Submission of Proposed Log Production Report by the permit holder; 

Approval of the Log Production Report by the district forestry official.  

(b)  Procedures: 

– 

– 

– 

– 

– 

– 

– 

– 

– 

The permit holder marks all cross-cut logs; 

The permanent physical marking of logs consists of the original tree ID number 
and other marks enabling the log to be linked to the approved felling site; 

The permit holder scales and grades all logs and records the information on the 
logs in a log-list using an official Ministry of Forestry Form; 

Based  on  the  log-list,  the  permit  holder  prepares  a  periodic  Log  Production 
Report and a summary report using official Ministry of Forestry Forms; 

The  permit  holder  periodically  submits  the  Log  Production  Report  and 
summary to the district forestry official for approval; 

The  district  forestry  official  carries  out  sample-based  physical  verification  of 
the  reports.  The  result  of  the  physical  verification  is  summarised  in  a  log-
verification-list using an official Ministry of Forestry Form; 

Subject to a positive outcome of the physical verification the official approves 
the Log Production Report;  

Once  logs  have  been  verified  by  the  official  they  must  be  stacked  separately 
from any non-verified logs;  

The  Log  Production  Report  is  used  to  calculate  the  required  payment  of  the 
Forest Resources Fee and to the Reforestation Fund (as applicable). 

(c)  Data reconciliation: 

For natural forest concessions: 

The  district  forestry  official  checks  the  number  of  logs,  the  tags  and  the  total 
cumulative  volume  of  logs  extracted  and  declared  in  the  Log  Production  Report 
against the quota approved in the Annual Work Plan.  

For timber plantation concession:  

The district forestry official checks the total cumulative volume of logs extracted and 
declared  in  the  Log  Production  Report  against  the  approved  quota  in  the  Annual 
Work Plan.  

1.3. 

Log-Yard 

Logs  are  transported  from  the  log-landing  site  to  log  yards  and  then  either  directly 
transported to a processing mill or to an intermediate log-yard. 

(a)  Main activities: 

– 

– 

– 

Preparation of a log-list by the permit holder; 

Invoicing by the district forest office and payment of relevant amount for the 
Forest  Resources  Fee  and  to  the  Reforestation  Fund  by  the  permit  holder. 
Based on the log-list, the district forestry official conducts a field inspection; 

Subject to a positive result of the field inspection, issuance by the official of a 
Log Transport Document, to which is annexed a log-list; 

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– 

Preparation of a Log Balance-Sheet Report by the permit holder. 

(b)  Procedures: 

– 

– 

– 

– 

– 

– 

– 

The  permit  holder  submits  a  request  to  settle  the  relevant  fees  to  the  district 
forestry official in charge of billing, based on the log–list, which is attached to 
the request;  

Based  on  the  aforementioned  request,  the  district  forestry  official  issues  an 
invoice or invoices for settlement by the permit holder;  

The permit holder pays the amount set out in the Forest Resources Fee and/or 
Reforestation Fund Invoice(s) and the district forestry official issues a receipt 
or receipts for this payment; 

The  permit  holder  submits  a  request  for  the  issuance  of  Log  Transportation 
Documents,  accompanied  by  the  payment  receipt,  log-list,  and  Log  Balance-
Sheet Report; 

The district forestry official carries out administrative and physical verification 
of the logs to be transported and prepares a verification report;  

Subject  to  a  positive  outcome  of  the  verification,  the  district  forestry  official 
issues the Log Transport Documents; 

The permit holder prepares/updates the Log Balance-Sheet Report to record the 
quantity of incoming, stored and outgoing logs at the logyard. 

(c)  Data reconciliation: 

The  district  forestry  official  checks  the  Log  Balance-Sheet  Report  comparing 
inflows,  outflows  and  storage  of  logs  at  the  log  yard,  based  on  Log  Production 
Reports and relevant Log Transport Documents. 

1.4. 

Intermediate Log-Yard 

Intermediate log-yards are used if logs are not transported from the concession area 
directly to the mill yard. Intermediate log-yards are used in particular for inter-island 
transportation of logs or if the transport mode is changed.  

The  permit  for  establishment  of  an  intermediate  log-yard  is  granted  by  the  forestry 
official based on a proposal submitted by the permit holder. An intermediate log-yard 
permit is valid for five years, but can be extended following review and approval by 
the forestry official.  

(a)  Main activities: 

– 

– 

– 

– 

Termination of the validity of the Log Transport Document by an official; 

Preparation of Log Balance-Sheet Report by the permit holder; 

Preparation of log-list by the permit holder; 

The  permit  holder  completes  the  Log  Transport  Document  following  the 
format provided by the Ministry of Forestry. 

(b)  Procedures 

– 

The  district  forestry  official  physically  verifies  the  number,  species,  and 
dimensions of incoming logs by counting them (census) or on a sample basis if 
the number of logs exceeds 100; 

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– 

– 

– 

– 

Subject  to  a  positive  outcome  of  the  verification,  the  official  terminates  the 
validity of the Log Transport Document for the incoming logs; 

The permit holder prepares a Log Balance-Sheet Report as a means to control 
the inflow and outflow of logs at the intermediate log-yard; 

For the outgoing logs, the permit holder prepares a log-list, which is linked to 
the previous Log Transport Documents; 

The Log Transport Document for moving logs from the intermediate log yard 
is completed by the permit holder. 

(c)  Data reconciliation: 

The  district  forestry  official  checks  the  consistency  between  the  logs  transported 
from the log-yard and the logs entering the intermediate log-yard.  

The  permit  holder  updates  the  Log  Balance-Sheet  Report,  which  records  inflows, 
outflows and storage of logs at the intermediate log-yard, based on the relevant Log 
Transport Documents. 

2. 

Description of the operational control of supply chains of timber from for privately 
owned forest/lands 

Timber  harvesting  operations  on  privately-owned  forest/land  are  regulated  by 
Minister  of  Forestry  Regulation  P.30/Menhut-II/2012  (hereinafter  referred  to  as  the 
Regulation). 

There  are  no  legal  requirements  for  the  private  owners  of  forest/lands  to  affix  ID 
marks on trees inventoried for harvesting or on logs. Log yards and intermediate log 
yards are generally not used for timber harvested from privately-owned forest/lands. 

Control procedures for timber from privately-owned forest/lands differ between logs 
obtained from trees which were on the site when the land title was acquired and logs 
obtained  from  trees  that  have  been  planted  since  the  title  was  acquired.  They  also 
depend on the tree species harvested. The payment of the Forest Resources Fee and 
to the Reforestation Fund applies to logs from trees already present on the site when 
the land title was awarded but does not apply to logs from trees established after the 
award of the land title.  

In  the  case  of  logs  harvested  from  trees  established  after  granting  of  the  land  title, 
there are two scenarios: 

– 

– 

for  species  listed  in  Article  5(1)  of  the  Regulation,  the  owner  prepares  an 
invoice, which serves as the transport document.  

for  other  species,  the  head  of  the  village  or  appointed  official  issues  the 
transport document.  

In the case of logs harvested from trees present on a site before the granting of the 
land title, the district forestry official issues the transport document. 

Felling/Log-Landing Site 

(a)  Main activities: 

– 

Recognition of the property right; 

–  Where necessary, cross-cutting 

– 

Scaling (measurement); 

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– 

– 

– 

Preparation of a log-list; 

Invoicing by the district forestry office and payment of the invoiced amount by 
the owner of the Forest Resources Fee and/or to the Reforestation Fund;  

Issuance or preparation of the transport document. 

(b)  Procedures: 

– 

– 

The private forest/land owner requests recognition of his or her property right;  

Once the forest/land property right is recognised, the owner prepares a log-list 
after measurement of the logs; 

In the case of logs harvested from trees present on a site before the granting of the 
land title: 

– 

– 

– 

– 

– 

– 

The owner submits a log-list and a request to settle the Forest Resources Fee 
and Reforestation Fund payment to the district forestry official  

The  official  conducts  document  checks  and  physical  verification  of  the  logs 
(dimensions, species identification, and number of logs); 

Subject  to  a  positive  outcome  of  the  document  checks  and  physical 
verification,  the  district  forestry  official  issues  a  Forest  Resources  Fee  and 
Reforestation Fund Invoice for settlement by the owner;  

The  landowner  submits  the  receipt  for  payment  of  the  Forest  Resources  Fee 
and to the Reforestation Fund to the head of village, together with a request for 
issuance of a Log Transport Document; 

The head of village conducts document checks and physical verification of the 
logs (dimensions, species identification, and number of logs); 

Based on the above, the head of village issues the Log Transport Document. 

In the case of logs harvested from trees established after granting of the land title: 

Species listed in Article 5(1) of the Regulation: 

– 

– 

– 

The owner marks the logs and identifies the species; 

The owner prepares a log-list; 

Based  on  the  above,  the  owner  prepares  an  invoice  following  the  format 
provided  by  the  Ministry  of  Forestry,  which  also  serves  as  the  transport 
document.  

Other species not listed in Article 5(1) of the Regulation: 

– 

– 

– 

– 

– 

The owner marks the logs and identifies the species; 

The owner prepares a log-list; 

The owner submits the log-list and a request for issuance of a Log Transport 
Document to the head of village or appointed official; 

The  head  of  village  or  appointed  official  conducts  document  checks  and 
physical  verification  of  the  logs  (species  identification,  number  of  logs, 
location of harvest); 

Based  on  the  above,  the  head  of  village  or  appointed  official  issues  the  Log 
Transport  Document  following  the  format  provided  by  the  Ministry  of 
Forestry. 

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(c)  Data reconciliation: 

The head of village or appointed official or the district forestry official compares the 
volume of harvested logs with the log-list. 

3. 

Description  of  the  operational  control  of  timber  supply  chains  for  industry  and  for 
export. 

3.1. 

Primary/Integrated Industry 

(a)  Main activities: 

– 

– 

– 

– 

– 

– 

– 

Preparation of Log Balance-Sheet Report by the processing mill; 

Physical verification of logs by the district forestry official; 

Termination of the validity of Log Transport Document by an official; 

Preparation of Raw Material and Products Tally Sheet by the mill; 

Preparation of Processed Timber Balance-Sheet Report by the mill; 

The mill completes in the Timber Products Transport Document following the 
format provided by the Ministry of Forestry; 

Preparation of sales report of the mill. 

(b)  Procedures: 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

The mill prepares a Log Balance-Sheet Report as a means to record the flow of 
logs in to and within the mill; 

The  mill  submits  copies  of  the  Log  Transport  Documents  corresponding  to 
each batch of logs received by the mill to the district forestry official; 

The  official  verifies  the  information  in  the  reports  by  comparing  with  the 
physical products. This may be done on the basis of a sample if there are over 
100 items;  

Subject  to  a  positive  outcome  of  the  verification,  the  official  terminates  the 
validity of the Log Transport Documents; 

The  official  files  copies  of  the  Log  Transport  Documents  and  prepares  a 
Summary List of the Log Transport Documents, following the format provided 
by the Ministry of Forestry; 

Copies  of  the  Log  Transport  Documents  whos  validity  that  have  been 
terminated by an official are handed over to the company for filing; 

A  summary  of  the  Log  Transport  Documents  is  submitted  to  the  district 
forestry office at the end of each month; 

The mill prepares raw material and product tally sheets by production line as a 
means  to  control  the  input  of  logs  and  output  of  timber  products  and  to 
calculate the recovery rate; 

The  mill  prepares  a  Processed  Timber  Balance-Sheet  Report  as  a  means  to 
report on flows of timber product within and from the mill, as well as stocks;  

The  company  or  mill  sends  sales  reports  of  the  mill  to  the  district  forestry 
office on a regular basis. 

(c)  Data reconciliation: 

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The company checks the Log Balance-Sheet Report comparing inflows, outflows and 
storage of logs based on Log Transport Documents. 

The  Production  Tally  Sheet  is  used  to  reconcile  input  and  output  volume  of 
production lines and the recovery rate is compared with the published average rate.  

The  company  checks  the  Processed  Products  Balance-Sheet  Report  comparing 
inflows,  outflows  and  storage  of  products  based  on  Timber  Product  Transport 
Documents. 

The district forestry official checks the reconciliation carried out by the company.  

3.2. 

Secondary Industry 

(a)  Main activities: 

– 

– 

– 

– 

Preparation  of  Processed  Timber  (semi-processed  products)  and  Processed 
Products Balance-Sheet Reports by the factory; 

Preparation of invoices by the factory, which also serve as transport documents 
for processed timber products; 

Preparation of Processed Timber Balance-Sheet Report by the factory; 

Preparation of Sales Report by the company or factory. 

(b)  Procedures: 

– 

– 

– 

The  factory  files  the  Processed  Timber  Transport  Documents  (for  incoming 
material)  and  prepares  a  summary  of  these  documents,  which  is  submitted  to 
the district forestry official; 

The factory uses the Processed Timber and Processed Products Tally Sheet by 
production  lines  as  a  means  to  report  on  flows  of  materials  into  the  factory, 
output of products and to calculate the raw material recovery rate; 

The factory prepares a Processed Timber Balance-Sheet Report as a means to 
check  flows  of  materials  into  the  mill,  output  of  timber  products  and  stocks 
held The company or factory prepares invoices for processed products, which 
else serves as the transport document, and files copies of the invoices. A timber 
products list is annexed to each invoice;  

– 

The company or factory sends Sales Reports to the district forestry office. 

(c)  Data reconciliation: 

The factory checks the Processed Timber Balance-Sheet Report comparing inflows, 
outflows and storage of materials based on Processed Timber Transport Documents 
and Processed Timber Tally Sheet. 

The Production Tally Sheet is used to check input and output volume of production 
lines and the recovery rate is evaluated.  

The  company  checks  the  Processed  Products  Balance-Sheet  Report,  comparing 
inflows, outflows and storage of products based on invoices. 

The  above  is  subject  to  checks  under  the  Forest  Utilization  Director-General 
Regulation P.8/VI-BPPHH/2011.  

4. 

Export 

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The  procedures  and  reconciliation  processes  for  export  of  timber  originating  from 
state-owned forests and privately-owned forest/land are identical. 

(a)  Main activities: 

– 

– 

– 

– 

– 

The Ministry of Trade issues a Forestry Industry Products Registered Exporters 
Certificate (ETPIK) to the exporter; 

The Exporter requests the issuance of a V-Legal Document/FLEGT licence for 
each export consignment; 

The LV verifies the relevant conditions have been met and issues the V-Legal 
Document/FLEGT licence; 

The exporter prepares an Export Declaration Document, which is submitted to 
Customs;  

The Customs issues an Export Approval Document for Customs clearance. 

(b)  Procedures: 

– 

– 

– 

– 

The exporter requests the LV to issue a V-Legal Document/FLEGT licence; 

The  LV  issues  a  V-Legal  Document/FLEGT  licence  after  a  document-based 
and  physical  verification,  so  as  to  ensure  that  the  timber  or  timber  products 
come from legally verified sources and are thus produced in compliance with 
the legality definition described in Annex II; 

The  exporter  submits  an  Export  Declaration  Document  to  which  are  attached 
the  invoice,  Packing  List,  Export  Duty  Receipt/Bukti  Setor  Bea  Keluar  (if 
regulated),  ETPIK  Certificate,  V-Legal  Document/FLEGT  licence,  Export 
Permit/Surat Persetujuan Ekspor (if regulated), Surveyor Report (if regulated), 
and CITES Document (where applicable) to the Customs for approval; 

Subject  to  a  positive  outcome  of  the  verification  of  the  Export  Declaration 
Document,  Customs  issues  an  Export  Approval  Document/Nota  Pelayanan 
Ekspor.

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TERMS OF REFERENCE FOR PERIODIC EVALUATION 

ANNEX VI 

1. 

Objective  

Periodic Evaluation (PE) is an independent evaluation done by an independent third 
party, referred to as Evaluator. The objective of PE is to provide assurance that the 
TLAS  is  functioning  as  described,  thereby  enhancing  the  credibility  of  the  FLEGT 
licences issued under this Agreement. 

2. 

1. 

2. 

Scope 

PE shall cover: 

The functioning of control measures from the point of production in the forest to the 
point of export of timber products. 

The  data  management  and  timber  traceability  systems  supporting  the  TLAS,  the 
issuance of FLEGT licences as well as the production, licensing and trade statistics 
relevant to this Agreement. 

3. 

Output 

The  output  of  PE  comprises  regular  reports  presenting  evaluation  findings  and 
recommendations  on  measures  to  be  undertaken  to  address  gaps  and  system 
weaknesses identified by the evaluation. 

4. 

Main activities 

PE activities include inter alia: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

5. 

5.1. 

5.2. 

(a) 

Audits  of  compliance  by  all  bodies  undertaking  control  functions  within  the 
provisions of the TLAS; 

Evaluation of the effectiveness of supply chain controls from the point of production 
in the forest to the point of export from Indonesia; 

Assessment  of  the  adequacy  of  data  management  and  timber  traceability  systems 
supporting the TLAS as well as the issuance of FLEGT licences;  

Identification  and  recording  of  cases  of  non-compliance  and  system  failures,  and 
prescribing necessary corrective actions; 

Assessment  of  the  effective  implementation  of  corrective  actions  previously 
identified and recommended; and 

Reporting findings to the Joint Implementation Committee (JIC). 

Evaluation Methodology 

The Evaluator shall use a documented and evidence-based methodology which meets 
the  requirements  of  ISO/IEC  19011,  or  equivalent.  This  shall  include  adequate 
checks of relevant documentation, operating procedures and records of the operations 
of  the  organisations  responsible  for  implementing  the  TLAS,  identification  of  any 
cases  of  non-compliance  and  system  failures,  and  issuance  of  requests  for 
corresponding corrective action.  

The Evaluator shall, inter alia: 

Review  the  process  for  accreditation  of  Independent  Assessment  and  Verification 
Bodies (LP and LV); 

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(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

Review  documented  procedures  of  each  body  involved  in  TLAS  implementation 
controls for completeness and coherence; 

Examine  implementation  of  documented  procedures  and  records,  including  work 
practices, during visits to offices, forest harvesting areas, log yards/log ponds, forest 
checking stations, mill sites and export and import points; 

Examine  information  collected  by  the  regulatory  and  enforcement  authorities,  LPs 
and LVs and other bodies identified in the TLAS to verify compliance;  

Examine  data  collection  by  private  sector  organisations  involved  in  TLAS 
implementation; 

Assess  the  availability  of  public  information  set  out  in  Annex  IX  including  the 
effectiveness of information disclosure mechanisms; 

Make  use  of  the  findings  and  recommendations  of  Independent  Monitoring  and 
Comprehensive  Evaluation  reports,  as  well  as  reports  of  the  Independent  Market 
Monitor; 

Seek the views of stakeholders and use information received from stakeholders who 
are either directly or indirectly involved in the implementation of the TLAS; and 

Use appropriate sampling and spot check methods to evaluate the work of the forest 
regulatory agencies, LPs and LVs, industries, and other relevant actors at all levels of 
forest  activities,  supply  chain  control,  timber  processing  and  export  licensing, 
including cross checks with information on timber imports from Indonesia provided 
by the Union. 

6. 

Qualifications of the Evaluator 

The  Evaluator  shall  be  a  competent,  independent  and  impartial  third  party  that 
complies with the following requirements: 

The  Evaluator  shall  demonstrate  the  qualifications  and  capability  to  meet  the 
requirements of ISO/IEC Guide 65 and ISO/IEC 17021, or equivalent, including the 
qualification  to  offer  assessment  services  covering  the  forest  sector  and  forest 
products supply chains; 

The  Evaluator  shall  not  be  directly  involved  in  forest  management,  timber 
processing,  trade  in  timber  or  control  of  the  forest  sector  in  Indonesia  or  in  the 
Union;  

The  Evaluator  shall  be  independent  from  all  other  components  of  the  TLAS  and 
Indonesia’s forest regulatory authorities and shall have systems to avoid any conflict 
of  interest.  The  Evaluator  shall  declare  any  potential  conflict  of  interest  that  may 
arise and take effective action to mitigate it; 

The Evaluator and its employees undertaking the evaluation tasks shall have proven 
experience of auditing tropical forest management, timber processing industries and 
related supply chain controls; 

The  Evaluator  shall  have  a  mechanism  in  place  for  receiving  and  dealing  with 
complaints that arise from its activities and findings. 

Reporting 

The PE report shall comprise: (i) a full report containing all relevant information on 
the evaluation, its findings (including cases of non-compliance and system failures) 

(a) 

(b) 

(c) 

(d) 

(e) 

7. 

7.1. 

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and  recommendations;  and  (ii)  a  public  summary  report  based  on  the  full  report, 
covering key findings and recommendations; 

The  full  report  and  the  public  summary  report  shall  be  submitted  to  the  JIC  for 
review and approval before releasing the reports to the public; 

Upon  the  request  of  the  JIC  the  Evaluator  shall  provide  additional  information  to 
support or clarify its findings; 

The Evaluator shall notify the JIC of all received complaints and the actions taken to 
resolve them. 

7.2. 

7.3. 

7.4. 

8. 

Confidentiality 

The Evaluator shall maintain the confidentiality of data it receives while carrying out 
its activities. 

Appointment, periodicity and financing 

The Evaluator shall be appointed by Indonesia after consultation with the Union in 
the JIC; 

PE shall be carried out at intervals of no more than twelve months starting from the 
date as agreed by the JIC in accordance with Article 14 (5) (e) of the Agreement.  

9. 

9.1. 

9.2. 

9.3. 

The financing of the PE shall be decided by the JIC.  

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ANNEX VII 

TERMS OF REFERENCE FOR INDEPENDENT MARKET MONITORING 

1. 

Objective of Independent Market Monitoring 

Independent  Market  Monitoring  (IMM)  is  market  monitoring  done  by  an  independent  third 
party  referred  to  as  Monitor.  The  objective  of  Independent  Market  Monitoring  (IMM)  is  to 
collect  and  analyse  information  on  the  acceptance  of  Indonesian  FLEGT-licensed  timber  in 
the  Union  market,  and  review  impacts  of  Regulation  (EU)  No  995/2010  of  the  European 
Parliament  and  of  the  Council  of  20  October  2010  laying  down  the  obligation  of  operators 
who place timber and timber products on the market and of related initiatives such as public 
and private procurement policies. 
2. 

Scope 

IMM shall cover:  

2.1. 

2.2. 

2.3. 

2.4. 

The  release  for  free  circulation  of  Indonesian  FLEGT-licensed  timber  at  points  of 
entry in the Union; 

The performance of Indonesian FLEGT-licensed timber in the Union market and the 
impact of market-related measures taken in the Union on the demand for Indonesian 
FLEGT-licensed timber; 

The performance of non-FLEGT-licensed timber in the Union market and the impact 
of  market-related  measures  taken  in  the  Union  on  the  demand  for  non-FLEGT-
licensed timber;  

Examination of the impact of other market-related measures taken in the Union such 
as public procurement policies, green building codes and private sector action such 
as trade codes of practice and corporate social responsibility. 

3. 

Output 

The  output  of  IMM  will  comprise  regular  reports  to  the  Joint  Implementation  Committee 
(JIC) containing its findings and recommendations on measures to strengthen the position of 
Indonesian FLEGT-licensed timber in the Union market and to improve the implementation 
of  market-related  measures  to  prevent  illegally  harvested  timber  from  being  placed  on  the 
Union market.  

4. 

Main Activities 

IMM includes inter alia: 

4.1. 

(a) 

(b) 

(c) 

Evaluation of: 

progress with and impact of the implementation of policy measures to tackle trade in 
illegally harvested timber in the Union. 

trends in imports of timber and timber products by the Union from Indonesia as well 
as other VPA and non-VPA timber exporting countries; 

actions by pressure groups that could affect demand for timber and timber products 
or markets for Indonesia’s forest products trade. 

4.2. 

Reporting findings and recommendations to the JIC. 

5. 

5.1. 

EN 

Monitoring Methodology 

The  Monitor  shall have a documented and evidence-based methodology.  This shall 
identification  of  any 
include  adequate  analysis  of  relevant  documentation, 

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inconsistencies  in  the  available  trade  data  and  information,  and  in-depth  interviews 
with  relevant  actors  on  key  indicators  of  the  impacts  and  effectiveness  of  market-
related measures.  
The Monitor shall conduct observations and analysis on, inter alia: 
The current market situation and trends in the Union for timber and timber products; 

Public  procurement  policies  and  their  treatment  of  FLEGT-  and  non-FLEGT- 
licensed timber and timber products in the Union; 

Legislation  affecting  the  timber  industry,  the  trade  in  timber  and  timber  products 
within the Union and imports of timber and timber products into the Union; 

Price  differentials  between  FLEGT-  and  non–FLEGT-  licensed  timber  and  timber 
products in the Union; 

Market  acceptance,  perception  and  market  share  of  FLEGT-licensed  and  certified 
timber and timber products in the Union; 

Statistics  and  trends  on  volumes  and  values  of  imports  at  different  Union  ports  of 
FLEGT-  and  non-FLEGT-licensed  timber  and  timber  products  from  Indonesia  as 
well as other VPA and non-VPA timber exporting countries; 

Descriptions  of,  including  any  changes  to,  the  legal  instruments  and  processes  by 
which  competent  authorities  and  border  control  authorities  in  the  Union  validate 
FLEGT  licences  and  release  shipments  for  free  circulation,  as  well  as  penalties 
imposed for non-compliance; 

Possible  difficulties  and  constraints  faced  by  exporters  and  importers  in  bringing 
FLEGT-licensed timber into the Union;  

The effectiveness of campaigns to promote FLEGT-licensed timber in the Union; 

The  Monitor  shall  recommend  market  promotion  activities  to  further  enhance  the 
market acceptance of Indonesian FLEGT-licensed timber 

5.2. 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

5.3. 

6. 

Qualifications of the Independent Market Monitor 

The Monitor shall: 

(a) 

(b) 

(c) 

7. 

7.1. 

7.2. 

be  an  independent  third  party  with  a  proven  track  record  of  professionalism  and 
integrity  in  monitoring  the  Union  timber  and  timber  products  market  and  related 
trade issues;  

be familiar with the trade in and markets for Indonesian timber and timber products, 
in  particular,  hardwood  and  for  those  countries  in  the  Union  producing  similar 
products; 

have  systems  to  avoid  any  conflict  of  interest.  The  Monitor  shall  declare  any 
potential conflict of interest that may arise and take effective action to mitigate it. 

Reporting 

Reports  shall  be  submitted  biennially  and  comprise:  (i)  a  full  report  containing  all 
relevant findings and recommendations; and (ii) a summary report based on the full 
report. 
The full report and the summary report shall be submitted to the JIC for review and 
approval before releasing the reports to the public; 

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7.3. 

8. 

Upon  the  request  of  the  JIC  the  Monitor  shall  provide  additional  information  to 
support or clarify its findings. 
Confidentiality 

The  Monitor  shall  maintain  the  confidentiality  of  data  it  receives  while  carrying  out  its 
activities. 

9. 

9.1. 

9.2. 

9.3. 

Appointment, periodicity and financing 

The Monitor shall be appointed by the Union after consultation with Indonesia in the 
JIC;  
IMM  shall  be  carried  out  at  intervals  of  no  more  than  twenty  four  months  starting 
from  the  date  as  agreed  by  the  JIC  in  accordance  with  Article  14(5)  (e)  of  the 
Agreement 
The financing of IMM shall be decided by the JIC  

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CRITERIA FOR ASSESSING THE OPERATIONALITY OF THE INDONESIAN 
TIMBER LEGALITY ASSURANCE SYSTEM 

ANNEX VIII: 

Background 

An  independent  technical  evaluation  of  the  Indonesian  TLAS  will  be  carried  out  before 
FLEGT licensing of timber exports to the Union starts. This technical evaluation will aim at: 
(i)  examining  the  function  of  the  TLAS  in  practice  to  determine  whether  it  delivers  the 
intended results and (ii) examining any revisions made to the TLAS after this Agreement was 
signed;  

The criteria for this evaluation are set out below: 

1. 

2. 

3. 

4. 

5. 

1. 

Definition of legality 

Control of the supply chain 

Verification procedures 

Licensing of exports 

Independent monitoring 

Definition of Legality  

Legally produced timber should be defined on the basis of the laws applicable in Indonesia. 
The definition used must be unambiguous, objectively verifiable and operationally workable 
and, as a minimum, include those law and regulations which cover: 

• 

• 

• 

• 

• 

Harvesting rights: Granting of legal rights to harvest the timber within legally 
designated and/or gazetted boundaries; 

Forest  operations:  Compliance  with  legal  requirements  regarding  forest 
management including compliance with relevant environmental and labour law 
and regulations; 

Fees  and  taxes:  Compliance  with  legal  requirements  concerning  taxes, 
royalties  and  fees  directly  related  to  timber  harvesting  rights  and  to  timber 
harvesting;  

Other users: Respect for other parties’ legal tenure or rights of use of land and 
resources  that  may  be  affected  by  timber  harvesting  rights,  where  such  other 
rights exist; 

Trade and customs: Compliance with legal requirements for trade and customs 
procedures.  

Key Questions:  

• 

• 

Have  the  definition  of  legality  and  the  legality  verification  standards  been 
amended since this Agreement was concluded?  

Have  the  relevant  labour  laws  and  regulations  been  included  in  the  legality 
definitions as per Annex II? 

In the event of amendments to the legality definition, key questions will include: 

•  Were  all  relevant  stakeholders  consulted  about  these  amendments  and  any 
subsequent  changes  to  the  legality  verification  system  through  a  process  that 
took adequate account of their viewpoints? 

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• 

• 

• 

Is it clear what legal instrument underpins each new element of the definition? 
Are  criteria  and  indicators  that  can  be  used  to  test  compliance  with  each 
element  of  the  definition  specified?  Are  the  criteria  and  indicators  clear, 
objective and operationally workable?  

Do  the  criteria  and  indicators  clearly  identify  the  roles  and  responsibilities  of 
all relevant parties and does verification assess their performance?  

Does  the  definition  of  legality  include  the  main  areas  of  existing  law  and 
regulations  outlined  above?  If  not,  why  were  certain  areas  of  law  and 
regulations left out from the definition?  

2. 

Control of the Supply Chain 

Systems to control the supply chain must provide credible assurance that timber products can 
be  traced  throughout  the  supply  chain  from  harvesting  or  point  of  import  to  the  point  of 
export. It will not always be necessary to maintain physical traceability for a log, log load or 
timber product from the point of export back to the forest of origin, but it is always needed 
between  the  forest  and  the  first  point  of  mixing  (e.g.  a  timber  terminal  or  a  processing 
facility). 

2.1. 

Rights of use 

There is clear delineation of areas where forest resource use rights have been allocated and 
the holders of those rights have been identified. 

Key Questions:  

• 

• 

• 

Does the control system ensure that only timber originating from a forest area 
with valid use rights enters the supply chain? 

Does  the  control  system  ensure  that  enterprises  carrying  out  harvesting 
operations have been granted appropriate rights of use for the concerned forest 
areas ? 

Are the procedures for issuing rights of harvesting and the information on such 
rights, including their holders, available in the public domain? 

2.2. 

Methods for controlling the supply chain 

There  are  effective  mechanisms  for  tracing  timber  throughout  the  supply  chain  from 
harvesting to the point of export. The approach for identifying timber may vary, ranging from 
the use of labels for individual items to reliance on documentation accompanying a load or a 
batch.  The  selected  method  should  reflect  the  type  and  value  of  timber  and  the  risk  of 
contamination with unknown or illegal timber. 

Key Questions:  

• 

• 

• 

Are  all  supply  chain  alternatives,  including  different  sources  of  timber, 
identified and described in the control system? 

Are  all  stages  in  the  supply  chain  identified  and  described  in  the  control 
system? 

Have methods to identify the product origin and to prevent mixing with timber 
from unknown sources in the following stages of the supply chain been defined 
and documented? 

• 

standing timber 

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• 

• 

• 

• 

• 

• 

• 

logs in the forest 

transport and interim storage (log yards/ponds, interim log yards/ponds) 

arrival at processing facility and storage of materials 

entry into and exit from production lines at processing facility  

storing of processed products at the processing facility 

exit from processing facility and transport 

arrival at point of export 

•  Which  organisations  are  in  charge  of  controlling  the  timber  flows?  Do  they 
have  adequate  human  and  other  resources  for  carrying  out  the  control 
activities? 

• 

• 

In the event of concrete findings that unverified timber enters into the supply 
chain,  have  any  weaknesses  in  the  control  system  being  identified  e.g.  the 
absence  of  an  inventory  of  standing  timber  before  harvesting  from  private 
forest/lands? 

Does  Indonesia  have  a  policy  on  the  inclusion  of  recycled  materials  in  the 
Indonesian TLAS and if so, has guidance on how to include recycled materials 
been developed? 

2.3. 

Quantitative data management: 

There  are  robust  and  effective  mechanisms  for  measuring  and  recording  the  quantities  of 
timber or timber products at each stage of the supply chain, including reliable and accurate 
pre-harvest estimations of the standing timber volume in each harvesting site. 

Key questions:  

• 

Does  the  control  system  produce  quantitative  data  of  inputs  and  outputs, 
including  conversion  ratios  where  applicable,  at  the  following  stages  of  the 
supply chain: 

• 

• 

• 

• 

• 

• 

• 

• 

standing timber 

logs in the forest (at log landings) 

transported and stored timber (log yards/ponds, interim log yards/ponds) 

arrival at the processing facility and storing of materials  

entry into and exit from production lines 

storing of processed products at the processing facility 

exit from processing facility and transport 

arrival at point of export 

•  Which  organisations  are  responsible  for  keeping  records  on  the  quantitative 
data? Are they adequately resourced in terms of personnel and equipment? 

•  What is the quality of the controlled data? 

• 

Are  all  quantitative  data  recorded  in  a  way  that  makes  it  possible  to  verify 
quantities with the prior and subsequent stages in the supply chain in a timely 
manner? 

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•  What information on the supply chain control is made publicly available? How 

can interested parties access this information? 

2.4. 

Segregation of legally verified timber from timber of unknown sources 

Key Questions:  

• 

Are there sufficient controls in place to exclude timber from unknown sources 
or timber which was harvested without legal harvesting rights? 

•  What  control  measures  are  applied  to  ensure  that  verified  and  unverified 

materials are segregated throughout the supply chain?  

2.5. 

Imported timber products 

There are adequate controls to ensure that imported timber and derived products have been 
legally imported. 

Key Questions:  

• 

How is the legal import of timber and derived products demonstrated?  

•  What documents are required to identify the country of harvest and to provide 
assurance  that  imported  products  originate  from  legally  harvested  timber,  as 
referred to in Annex V? 

• 

Does  the  TLAS  identify  imported  timber  and  timber  products  throughout  the 
supply chain until they are mixed for manufacturing of processed products? 

•  Where imported timber is used, can the country of harvest origin be identified 

on the FLEGT licence (may be omitted for reconstituted products)? 

3. 

Verification Procedures 

Verification provides adequate checks to ensure the legality of timber. It must be sufficiently 
robust and effective to ensure that any non-compliance with requirements, either in the forest 
or within the supply chain, is identified and prompt action is taken. 

3.1. 

Organisation 

Verification  is  carried  out  by  a  third-party  organisation  which  has  adequate  resources, 
management  systems,  skilled  and  trained  personnel,  as  well  as  robust  and  effective 
mechanisms to control conflicts of interest. 

Key Questions:  

• 

• 

• 

• 

Do  the  verification  bodies  have  a  valid  accreditation  certificate  issued  by  the 
National Accreditation Body (KAN)? 

Does the government appoint bodies to undertake the verification tasks? Is the 
mandate (and associated responsibilities) clear and in the public domain? 

Are institutional roles and responsibilities clearly defined and applied? 

Do the verification bodies have adequate resources for carrying out verification 
against the legality definition and the systems for controlling the timber supply 
chain? 

• 

Do the verification bodies have a fully documented management system that: 

• 

ensures  its  personnel  have  the  necessary  competence  and  experience  to 
carry out effective verification? 

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• 

• 

• 

• 

applies internal control / supervision? 

includes mechanisms to control conflicts of interest? 

ensures transparency of the system? 

defines and applies verification methodology? 

3.2. 

Verification with respect to the definition of legality 

There is a clear definition that sets out what has to be verified. The verification methodology 
is  documented  and  ensures  that  the  process  is  systematic,  transparent,  evidence-based, 
carried out at regular intervals and covers everything included within the definition. 

Key Questions:  

• 

Does  the  verification  methodology  used  by  the  verification  bodies  cover  all 
elements  of  the  legality  definition  and  include  tests  of  compliance  with  all 
indicators? 

• 

Do the verification bodies:  

• 

• 

• 

check documentation, operating records and on-site operations (including 
through spot checks)? 

collect information from external interested parties? 

record their verification activities?  

• 

Are the verification results made publicly available? How can interested parties 
access this information? 

3.3. 

Verification of systems for controlling the integrity of the supply chain 

There is a clear scope of criteria and indicators to be verified which covers the entire supply 
chain.  The  verification  methodology  is  documented,  ensures  that  the  process  is  systematic, 
transparent,  evidence-based,  carried  out  at  regular  intervals,  covers  all  criteria  and 
indicators  within  the  scope  and  includes  regular  and  timely  reconciliation  of  data  between 
each stage in the chain. 

Key Questions:  

• 

Does  the  verification  methodology  fully  cover  checks  on  supply  chain 
controls? Is this clearly spelt out in the verification methodology? 

•  What  evidence  is  there  to  demonstrate  application  of  verification  of  supply 

chain controls? 

•  Which  organisations  are  responsible  for  data  verification?  Do  they  have 
adequate  human  and  other  resources  for  carrying  out  the  data  management 
activities? 

• 

• 

Are  there  methods  for  assessing  correspondence  between  standing  timber, 
harvested logs and timber entering the processing facility or point of export? 

Are there methods to assess the coherence between inputs of raw materials and 
the  outputs  of  processed  products  at  sawmills  and  other  plants?  Do  these 
methods include specification and periodic updating of conversion ratios? 

•  What information systems and technologies are applied for storing, verifying, 
and recording data? Are there robust systems in place for securing the data? 

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Are  the  verification  results  on  supply  chain  control  made  publicly  available? 
How can the interested parties access this information? 

3.4. 

Mechanisms for handling complaints  

There  are  adequate  mechanisms  for  handling  complaints  and  disputes  that  arise  from  the 
verification process.  

Key Questions: 

• 

• 

• 

• 

Do  verification  bodies  have  a  complaints  mechanism  that  is  available  to  all 
interested parties?  

Do the verification bodies have mechanisms in place to receive and respond to 
objections from the independent monitors?  

Do the verification bodies have mechanisms in place to receive and respond to 
infringements / breaches detected by government officials? 

Is  it  clear  how  complaints  are  received,  documented,  escalated  (where 
necessary) and responded to? 

3.5. 

Mechanisms for dealing with non-compliance  

There are adequate  mechanisms  for  dealing with cases of non-compliance identified during 
the verification process or brought forward through complaints and independent monitoring. 

Key Questions: 

• 

• 

• 

• 

• 

Is  there  an  effective  and  functioning  mechanism  for  requiring  and  enforcing 
appropriate  corrective  decision  on  verification  results  and  action  where 
breaches are identified?  

Does the verification system define the above requirement? 

Have mechanisms been developed for handling cases of non-compliance? Are 
these applied in practice? 

Are  there  adequate  records  available  on  cases  of  non-compliance  and  of 
correction  of  the  verification  results,  or  on  other  actions  taken?  Is  there  an 
evaluation of the effectiveness of such actions?  

Is there a mechanism for reporting to the government on verification findings 
of the verification bodies? 

•  What  kind  of  information  on  cases  of  non-compliance  goes  into  the  public 

domain? 

4. 

Licensing of Exports 

Indonesia has assigned overall responsibility for issuing V-Legal Document/FLEGT licences 
to licensing authorities. FLEGT licences are issued for individual shipments destined to the 
Union. 

4.1. 

Organisational set-up 

Key Questions: 

•  Which bodies are assigned responsibility for issuing FLEGT licences? 

• 

Does  the  Licensing  Authority  have  a  valid  accreditation  certificate  issued  by 
KAN? 

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• 

• 

• 

Are  the  roles  of  the  Licensing  Authority  and  its  personnel  with  regard  to  the 
issuance of FLEGT licences clearly defined and publicly available? 

Are the competence requirements defined and internal controls established for 
the personnel of the Licensing Authority? 

Does the Licensing Authority have adequate resources for carrying out its task? 

4.2. 

Issuing of V-Legal Documents and their use for FLEGT licensing 

Adequate arrangements have been made to use V-Legal Documents for FLEGT licensing. 

Key Questions: 

• 

Does the Licensing Authority have publicly available documented procedures 
for issuing a V-Legal Document? 

•  What evidence is there that these procedures are properly applied in practice? 

• 

• 

• 

Are there adequate records on issued V-Legal Documents and on cases where 
V-Legal Documents were not issued? Do the records clearly show the evidence 
on which the issuing of V-Legal Documents is based? 

Does  the  Licensing  Authority  have  adequate  procedures  to  ensure  that  each 
shipment of timber meets the requirements of the legality definition and supply 
chain controls?  

Have  the  requirements  for  issuing  licences  been  clearly  defined  and 
communicated to exporters and to other concerned parties? 

•  What kind of information on issued licences goes into the public domain? 

• 

• 

Do the FLEGT licences comply with the technical specifications contained in 
Annex IV? 

Has Indonesia developed a numbering system for FLEGT licences that enables 
differentiation between FLEGT licences destined to the Union market and V-
Legal Documents destined to non-Union markets? 

4.3. 

Queries on issued FLEGT licences  

There  is  an  adequate  mechanism  in  place  for  handling  queries  from  competent  authorities 
with regard to FLEGT licences, as set out in Annex III. 

Key Questions: 

• 

• 

• 

• 

Has  a  Licence  Information  Unit  been  assigned  and  established,  inter  alia,  to 
receive and respond to inquiries from the competent authorities? 

Have  clear  communication  procedures  been  established  between  the  Licence 
Information Unit and the competent authorities? 

Have  clear  communication  procedures  been  established  between  the  Licence 
Information Unit and the Licensing Authority? 

Are there channels for Indonesian or international stakeholders to inquire about 
issued FLEGT licences?  

4.4. 

Mechanism for handling complaints 

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There  is  an  adequate  mechanism  for  handling  complaints  and  disputes  that  arise  from 
licensing.  This  mechanism  makes  it  possible  to  deal  with  any  complaint  relating  to  the 
operation of the licensing scheme. 

Key Questions: 

• 

• 

Is there a documented procedure for handling complaints that is available to all 
interested parties? 

Is  it  clear  how  complaints  are  received,  documented,  escalated  (where 
necessary) and responded to? 

5. 

Independent Monitoring 

Independent  Monitoring  (IM)  is  conducted  by  Indonesia’s  civil  society  and  is  independent 
from  other  elements  of  the  TLAS  (those  involved  in  the  management  or  regulation  of  forest 
resources  and  those  involved  in  the  independent  audit).  One  of  the  key  objectives  is  to 
maintain the credibility of the TLAS by monitoring the implementation of verification. 

Indonesia  has  formally  recognized  the  IM  function  and  allows  civil  society  to  submit 
complaints  when  irregularities  in  the  accreditation,  assessment  and  licensing  processes  are 
found.  

Key Questions: 

• 

• 

• 

• 

• 

• 

Has the government made the guidelines for IM publicly available? 

Do the guidelines provide clear requirements on the eligibility of organisations 
to perform IM functions to ensure impartiality and avoid conflicts of interest?  

Do  the  guidelines  provide  procedures  to  access  the  information  contained  in 
Annex IX? 

Can civil society access the information contained in Annex IX in practice? 

Do  the  guidelines  provide  procedures  for  the  submission  of  complaints?  Are 
these procedures publicly available? 

Have  reporting  and  public  disclosure  provisions  that  apply  to  verification 
bodies been clarified and established? 

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ANNEX IX 

PUBLIC DISCLOSURE OF INFORMATION 

1. 

1. Introduction 

The Parties are committed to ensuring that key forestry-related information is made available 
to the public.  

This  Annex  provides  for  this  objective  to  be  met  by  outlining  (i)  the  forestry-related 
information  to  be  made  available  to  the  public,  (ii)  the  bodies  responsible  for  making  that 
information available, and (iii) the mechanisms by which it can be accessed.  

The  aim  is  to  ensure  that  (1)  JIC  operations  during  implementation  of  this  Agreement  are 
transparent  and  understood;  (2)  a  mechanism  exists  for  the  Parties  as  well  as  relevant 
stakeholders to access key forestry-related information; (3) TLAS functioning is strengthened 
through the availability of information for independent monitoring; and (4) larger objectives 
of this Agreement are achieved. The public availability of information represents an important 
contribution to reinforcing Indonesia’s forest governance. 

2. 

Mechanisms to access information 

This  Annex  is  in  line  with  the  Indonesian  Law  on  Freedom  of  Information  No.  14/2008. 
According to this Law, it is mandatory for every public institution to develop regulations on 
access to information by the public. The Law distinguishes four categories of information: (1) 
information available and actively disseminated on a regular basis; (2) information that should 
be made public without delay; (3) information that is available at all times and provided upon 
request; and (4) information that is restricted or confidential.  

The Ministry of Forestry (Ministry of Forestry), provincial and district offices, the National 
Accreditation Body (KAN), the conformity assessment body (CAB), the licensing authorities 
are all significant institutions in the functioning of the TLAS and therefore obliged as part of 
their duties to disclose forestry-related information to the public.  

To  implement  the  said  Law,  the  Ministry  of  Forestry,  provincial  and  district  offices  and  all 
other  public  agencies  including  KAN  have  developed  or  are  developing  procedures  for 
making information available to the public.  

The  KAN  is  also  required  to  make  information  available  to  the  public  under  ISO/IEC 
17011:2004,  clause  8.2-Obligation  of  the  accreditation  body.  Verification  bodies  and 
licensing authorities are required to make information available to the public under Minister 
for Forestry Regulations and ISO/IEC 17021:2006 clause 8.1-Publicly accessible information 
and ISO/IEC Guide 65:1996 clause 4.8-Documentation. 

Civil  society  organisations  function  as  one  of  the  sources  of  forestry-related  information 
under Minister for Forestry Regulations. 

The  Minister  for  Forestry  has  issued  Regulation  No.  P.7/Menhut-II/2011  dated  2  February 
2011, which provides that requests for information held by the Ministry of Forestry are to be 
addressed to the Director of the Centre for Public Relations of the Ministry of Forestry in a 
“one-door”  information  policy.  Further  implementing  guidance  is  being  developed  by 
Ministry of Forestry. Information available at regional, provincial, and district forestry offices 
can be accessed directly.  

To  make  this  Annex  operable,  the  procedures/guidelines/instructions  for  the  mentioned 
institutions  to  respond  to  requests  for  information  need  to  be  developed  and  approved.  In 
addition, the reporting and public disclosure provisions that apply to verification bodies and 
Licensing Authorities will be clarified.  

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3. 

Categories  of  information  used  to  reinforce  monitoring  and  evaluation  of  the 
functioning of the TLAS  

Laws  and  regulations:  All  laws,  regulations,  standards,  and  guidelines  listed  in  the  legality 
standards.  

Land and forest allocation: land allocation maps and provincial spatial plans, procedures for 
land  allocation,  forest  concession  or  utilisation  rights  and  other  rights  of  exploitation  and 
processing,  and  related  document  such  as  concession  maps,  forest  area  release  permit,  land 
title documents and land title maps.  

Forest  management  practices:  forest  use  plans,  annual  work  plans  including  maps  and 
equipment  permit,  minutes  of  consultation  meetings  with  communities  living  in  and  around 
permit area required for the development of the annual work plans, forest timber exploitation 
work plan and annexes, Environmental Impact Assessment documents and minutes of public 
consultation meetings required for the development of the Environmental Impact Assessment 
reports, log production reports, and stand inventory data in state-owned forest land. 

Transport  and  supply  chain  information,  e.g.  log  or  forest  product  transport  documents  and 
annexes  and  timber  reconciliation  reports,  inter-island  timber  transportation  registration 
documents, and documents showing ship identity. 

Processing and industry information: e.g. company establishment deed, business licence and 
company  registration  number,  report  of  the  Environmental  Impact  Assessment,  industrial 
business  licence  or  industrial  registration  numbers,  industrial  raw  material  supply  plans  for 
primary forest product industries, registration of the exporter of forest industry products, raw 
material and processed product reports, list of holders of rights to processing, and information 
on companies in secondary processing.  

Forest-related fees: e.g. area-based payment fees and payment slip invoices, payment orders 
and invoices for reforestation and forestry resource fees. 

Verification  and  licensing  information:  quality  guidance  and  standard  of  procedures  for 
accreditation; name and address of each accredited CAB dates of granting accreditation and 
expiry  dates;  scopes  of  accreditation;  list  of  CAB  personnel  (auditors,  decision  makers) 
associated with each certificate; clarification on what is considered commercially confidential 
information; audit plan to know when public consultations take place; announcement of audit 
by  CAB;  minutes  from  public  consultations  with  CAB  including  list  of  participants;  public 
summary of audit result; recap reports by auditing body of certificate issuance; status report 
on  all  audits:  certificates  passed,  failed,  those  currently  in  process,  granted,  suspended  and 
withdrawn  certificates  and  any  changes  to  the  above;  cases  of  non-compliance  relevant  to 
audits  and  licensing  and  the  action  taken  to  deal  with  them;  issued  export  licences;  regular 
recap reports from licensing authorities.  

Monitoring and complaint procedures: standard operating procedures for complaints to KAN, 
verification bodies and licensing authorities, including procedures to monitor the progress of 
complaint reports and close out of complaint report.  

A  list  of  key  documents  of  relevance  to  forest  monitoring,  the  agencies  that  hold  these 
documents as well as the procedure by which this information can be acquired is contained in 
the appendix to this Annex. 

4. 

Categories of Information Used to Reinforce Larger VPA Objectives  

1. 

2. 

Record of Discussions in the JIC  

The annual report of the JIC outlining: 

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(a)  quantities of timber products exported from Indonesia to the Union under 
the FLEGT licensing scheme, according to the relevant HS Heading, and 
the Union Member State in which importation into the Union took place; 

(b) 

the number of FLEGT licences issued by Indonesia; 

(c)  progress  in  achieving  the  objectives  of  this  Agreement  and  matters 

relating to its implementation; 

(d) 

actions  to  prevent  illegally-produced  timber  products  being  exported, 
imported, and placed or traded on the domestic market; 

(e)  quantities  of  timber  and  timber  products  imported  into  Indonesia  and 
actions  taken  to  prevent  imports  of  illegally-produced  timber  products 
and maintain the integrity of the FLEGT Licensing Scheme; 

(f) 

cases  of  non-compliance  with  the  FLEGT  Licensing  Scheme  and  the 
action taken to deal with them; 

(g)  quantities of timber products imported into the Union under the FLEGT 
licensing  scheme,  according  to  the  relevant  HS  Heading  and  Union 
Member State in which importation into the Union took place; 

(h) 

(i) 

the number of FLEGT licences from Indonesia received by the Union; 

the  number  of  cases  and  quantities  of  timber  products  involved  where 
consultations  between  the  competent  authorities  and  the  Indonesian 
Licence Information Unit were undertaken. 

3. 

4. 

5. 

6. 

Full report and summary report of the PE. 

Full report and summary report of the IMM. 

Complaints about the PE and the IMM and how they have been handled. 

Time schedule for implementation of this Agreement and overview of activities 
undertaken.  

7.  Any  other  data  and  information  of  relevance  to  the  implementation  and 

functioning of this Agreement. This includes: 

Legal information 

• 

• 

• 

The text of this Agreement, its Annexes and any amendments 

The text of all laws and regulations referred to in Annex II 

Implementing regulations and procedures 

Information on production: 

• 

• 

Total annual timber production in Indonesia; 

Annual volumes of timber products exported (total and to the Union); 

Information on allocation of concessions: 

• 

• 

• 

Total area of forestry concessions allocated; 

List  of  concessions,  the  names  of  the  companies  to  whom  they  have  been 
allocated and the names of the companies by whom they are managed; 

Location map of all logging concessions; 

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• 

• 

List  of  registered  forestry  companies  (production,  processing,  trade  and 
exports); 

List  of  SVLK-certified  forestry  companies  (production,  processing,  trade  and 
exports);  

Information on management 

• 

• 

List of concessions under management by type; 

List  of  certified  forestry  concessions  and  the  type  of  certificate  under  which 
they are managed;  

Information on authorities: 

• 

• 

• 

List  of  Licensing  Authorities  in  Indonesia  including  address  and  contact 
details; 

Address and contact details of the Licence Information Unit; 

List  of  competent  authorities  in  the  Union  including  address  and  contact 
details; 

This information will be made available through the websites of the Parties. 

1. 

IMPLEMENTATION OF PUBLIC DISCLOSURE PROVISIONS 

As part of the implementation of this Annex the Parties will assess: 

• 

• 

the need for capacity-building on the use of public information for independent 
monitoring; 

the  need  to  raise  public  sector  and  stakeholder  awareness  of  the  public 
disclosure provisions contained in this Agreement.  

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Appendix – Information to Reinforce Verification, Monitoring and the Functioning of the TLAS 

No 

Document to be made publicly available 

Agencies that hold the document 

Information 

Category 

TIMBER FROM FORESTS ON STATE-OWNED LANDS (IUPHHK-HA/HPH, IUPHHK-HTI/HPHTI,IUPHHK RE) and TIMBER FROM 
FORESTS ON STATE-OWNED LANDS MANAGED BY LOCAL COMMUNITIES (IUPHHK-HTR, IUPHHK-HKM) 

1 

2 

3 

4 

5 

6 

7 

Forest Concession Rights Permits  
(SK IUPHHK-HA/HPH, IUPHHK-HTI/HPHTI, 
IUPHHK RE) 

Concession Maps  

Ministry  of  Forestry  (BUK);  copies  in  district  and  provincial 
forestry offices 

Ministry  of  Forestry  (BAPLAN);  copies  in  district  and 
provincial forestry offices 

Production  Forest  Timber  Utilisation  Permits  (SK 
IUPHHK-HTR, IUPHHK-HKm) 

Ministry  of  Forestry  (BUK);  copies  in  district  and  provincial 
forestry offices 

Production Forest Timber Utilisation maps  

Forest Use Plan (TGHK) 

Ministry  of  Forestry  (BAPLAN);  copies  in  district  and 
provincial forestry offices 

Ministry  of  Forestry  (BAPLAN);  copies  in  district  and 
provincial forestry offices 

Forest Timber Exploitation Work Plan (RKUPHHK) and
annexes including equipment permit 

Ministry of Forestry (BUK) 

IUPHHK Permit Fee Payment Order (SPP) and payment 
slip 

 Ministry of Forestry (BUK)  

3 

3 

3 

3 

3 

3 

3 

EN 

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8 

9 

Annual Work Plan (RKT/Blue Print) including map 

Provincial forestry offices; copies in district forestry offices  

Cruising  and  production  reports  (LHP  and  LHC)
documents 

District forestry offices; copies in provincial offices 

10 

Transport Documents (skshh) 

District forestry office; copies in provincial forestry offices 

11 

Log reconciliation report (LMKB) 

District  forestry  offices  and  local  Ministry  of  Forestry  unit 
(BP2HP) 

12 

13 

Payment  Order  and  slip  for production  fee  (SPP) 
(by logs/volume) 

District forestry offices  

receipt  of  Forestry  Resource  Fee  and

Payment 
Reforestation 
Fund  fee  (PSDH  or  DR  for  licence  holders  of  natural
forests or PSDH for licence holders of plantation forests)

District forestry offices  

14 

Environmental  Impact  Assessment  (EIA)  documents
(AMDAL, ANDAL, RKL and RPL) 

Provincial or district environmental office (BAPEDALDA or 
BLH); copies in Ministry of Forestry (BUK) 

TIMBER FROM PRIVATE LAND 

Valid land title document 

National or provincial/district land agency office (BPN) 

Land title/location maps 

National or provincial/district land agency office (BPN) 

Log transport SKAU or SKSKB document stamped with
KR (Community Timber) 

Village  head  (SKAU);  copies  in  district  forestry  offices
(SKSKB-KR and SKAU)  

3 

3 

3 

3 

3 

3 

3 

3 

3 

3 

15 

16 

17 

EN 

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TIMBER FROM FOREST CONVERSION LAND (IPK) 

18 

Timber 
equipment permit 

utilisation 

licences: 

ILS/IPK 

including

Provincial and district forestry offices 

19  Maps annexed to ILS/IPK 

Provincial and district forestry offices 

20 

Forest area release permit  

Ministry  of  Forestry  (BAPLAN)  and  Ministry  of  Forestry 
Provincial Unit (BPKH) 

21  Work plan IPK/ILS 

District forestry offices 

22 

23 

24 

25 

inventory  data 

Stand 
to be converted (section in IPK/ILS work plan) 

in  state-owned 

forest 

land 

District forestry offices 

Timber production document (LHP) 

District forestry offices 

DR and PSDH payment receipt (see no. 13) 

District forestry offices; copies in Ministry of Forestry (BUK)

Transport  documents  FAKB  and  the  annexes  for  KBK
and SKSKB and the annexes for KB 

District forestry offices 

FOREST-BASED INDUSTRY 

26 

Company Establishment Deed 

Ministry  of  Law  and  Human  Rights;  for  primary  and 
integrated  industry  with  capacity  above  6000  m3  copies  in 
Ministry  of  Forestry  (BUK),  with  capacity  under  6000  m3 
copies in provincial and district forestry offices; for secondary 
industry copies in Ministry of Industry. 

3 

3 

3 

3 

3 

3 

3 

3 

3 

EN 

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27 

Business Licence (SIUP) 

28 

Company Registration Number (TDP) 

29 

30 

Environmental Impact Assessment (EIA) (UKL/UPL and
SPPL) 

Industrial  Business  Licence 
Registration Number (TDI) 

(IUI)  or 

Industrial

31 

Industrial  Raw  Material  Supply  Plan  (RPBBI)  for
Primary Forest Product Industries (IPHH) 

Local  investment  office  or  investment  coordinating  agency 
(BKPMD),  Ministry  of  Trade.  For  secondary  industry  copies 
in Ministry of Industry. 

Local  investment  office  or  investment  coordinating  agency 
(BKPMD) and Ministry of Trade 

Provincial  and  district  environmental  offices (BAPEDALDA 
or  BLH);  copies 
investment 
local 
coordinating agency (BKPMD) 

trade  office  or 

in 

Primary and integrated industry with capacity above 6000 m3 
copies  in  Ministry  of  Forestry  (BUK),  with  capacity  under 
6000  m3  copies  in  provincial  forestry  offices,  with  capacity 
under  2000  m3  copies  in  district  forestry  offices;  for 
secondary industry copies in Ministry of Industry. 

Primary and integrated industry with capacity above 6000 m3 
copies  in  Ministry  of  Forestry  (BUK),  with  capacity  under 
6000  m3  copies  in  provincial  forestry  offices,  with  capacity 
under  2000  m3  copies  in  district  forestry  offices;  copies  in 
provincial and district forestry offices. 

32 

Forest Industry Product Registered Exporter (ETPIK)  Ministry of Trade 

Transport  documents  (SKSKB,  FAKB,  SKAU  and/or
FAKO) 

Village  head  (SKAU);  copies  in  district  forestry  offices
(SKSKB-KR, SKAU), copies of FAKO at provincial forestry 
offices 

Documents  reporting  changes  in  round  log  stocks
(LMKB/LMKBK)  

District forestry offices 

3 

3 

3 

3 

3 

3 

3 

3 

33 

34 

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35 

Processed Product Report (LMOHHK) 

District forestry offices, copies to provincial forestry offices 

36 

Inter-island timber trade document (PKAPT)  

Ministry of Trade (DG Domestic Trade) 

37 

Document showing ship identity 

Local  Port  Administration  Office 
(under  Ministry  of 
Transportation);  copy  in  Indonesian  Classification  Bureau 
(BKI) 

OTHER RELEVANT INFORMATION 

38 

Laws  and  regulations:  all  laws,  regulations,  standards, 
and guidelines listed in the legality standards 

Ministry of Forestry, provincial or district forestry offices 

39 

Verification and Licensing information: 

(a)  quality  guidance  and  standard  of  procedures  for
accreditation  

National Accreditation Body (KAN) 

(b)  name  and  address  of  each  accredited  conformity 
assessment body (LP and LV) 

National Accreditation Body (KAN) 

(c) 
list  of  personnel 
associated with each certificate 

(auditors,  decision  makers)

Conformity  assessment  bodies  (LP  and  LV),  Ministry  of 
Forestry 

(d)  clarification  on  what  is  considered  commercially
confidential information 

Conformity assessment bodies (LP and LV) 

3 

3 

3 

3 

1 

1 

1 

1 

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(e)  audit  plan  to  know  when  public  consultations  take
place,  announcement  of  audit  by  auditing  body,  public
summary  of  audit  result,  recap  reports  by  auditing  body
of certificate issuance 

40 

Status reports on audits: 

Conformity assessment bodies (LP and LV) 

(a) certificates passed, failed, those currently in process,
granted,  suspended  and  withdrawn  certificates  and  any
changes to the above 

Conformity assessment bodies (LP and LV) 

(b)  cases  of  non-compliance  relevant  to  audits  and 
licensing and the action taken to deal with them; 

Conformity assessment bodies (LP and LV) 

(c) Issued export licences (V-Legal Document); periodic 
reports from licensing body 

Conformity assessment bodies (LP and LV) 

41 

Monitoring and complaint procedures: 

(a)  standard  operating  procedures  for  complaints  for
accreditation body and each auditing body 

National  Accreditation  Body  (KAN),  conformity  assessment 
bodies (LP and LV) 

(b)  civil  society  procedures  for  monitoring,  complaints,
reports from civil society monitor 

Ministry of Forestry, Independent Monitor 

(c) documents to monitor the progress of complaint 
reports and resolution of complaint report 

National Accreditation Body (KAN), conformity assessment 
bodies (LP and LV) 

Procedures to acquire information: 

1 

1 

3 

1 

1 

1 

3 

EN 

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• 

• 

• 

The  Freedom  of  Information  Act  (UU  14/2008)  distinguishes  four  categories  of  information:  (1)  information  available  and  actively 
disseminated on a regular basis; (2) information that should be made public immediately; (3) information that is available at all times 
and provided upon request and (4) restricted or confidential information.  

Information under category 3 of the Freedom of Information Act is provided to the public upon request to the designated body (PPID) 
within the respective institution, e.g. the Public Relations Centre of the Ministry of Forestry. Each institution has its own implementing 
regulation on public information, based on the Freedom of Information Act. 

Some information, although falling under Category 3 under the Freedom of Information Act is published on the websites of the relevant 
institutions, inter alia: decrees and regulations, land allocation maps, forest use plans.  

EN 

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