INTERNATIONAL BUSINESS DIALOGUE (IBD)
ON THE FORESTRY SECTOR
BETWEEN
INDONESIAN VERIFIED LEGAL TIMBER PRODUCT PRODUCERS AND
EUROPEAN, AMERICAN, JAPANESE, CHINESE
AND AUSTRALIAN IMPORTERS
JW MARRIOTT HOTEL, JAKARTA – INDONESIA
March 21st, 2012
Organized by Permanent Committee on Forest Timber Products of the Indonesian Chamber of Commerce and Industries (KADIN)
in collaboration with the Indonesian Exporters Association (GPEI) and PT. Mutu Hijau Indonesia (PT. MHI)
68 Indonesian and overseas delegates from key international market regions came together to share the vision and mission of each party for mutual understanding and for strengthening business networks for the future. They discussed topics of mutual interest relating to markets and supply of sustainable and verifiable timber.
Dr Bambang Sujagad, Vice Chairman of the Indonesian Chamber of Commerce (KADIN) which had organised the meeting in collaboration with Indonesian Exporters Association and PT. Mutu Hijau Indonesia, welcomed the delegates. KADIN was formed by law, but is a private organisation to facilitate dialogue between industry and government to develop the economy. He said that Indonesia is becoming more and more competitive.
The Afternoon Presentations that followed were presided over by Andreas von Moeller, President of the European TTF.
Mr Hunawan Widjajanto of PT Kayu Lapis Indonesia and member of APKINDO reviewed the various international regulations and addressed the issue of readiness for using ‘V-Legal’. He concluded by affirming that “we are ready.”
Kerstin Canby of Forest Trends (USA) clarified some of the issues challenges that had been raised in earlier sessions: the impact of the U.S. Lacey Act, which she likened to lightening which may strike anywhere; the expected explosive growth of the middle class in Asia and its impact on the Indonesian forest products industry; and the plight of SMEs in the SVLK process.
Mr Boen Purnama addressed the practical needs for SVLK and the questions of its credibility and readiness and suggested a step approach by product and group certification for small scale operators. “A better perception of forestry is necessary” he said and concluded that multi-stakeholder involvement is a must.
Mr Wu Shengfu gave a very comprehensive view of his attitude to certification in China and said that area under PEFC certificates in China is growing more rapidly than FSC. He also claimed that TLAS is as good as FSC and could be endorsed with Chinese Forest Certification Council (CFCC), which is now bigger than FSC.
Ms. Rachel Butler referred to the fact of EUTR as mandatory whereas SVLK is voluntary but that we are all looking to do the same thing. Mr Mengel said that for Lacey, if the species is not known then it is necessary to indicate what the species might be in order to be compliant.
Mr. John Talbot re-iterated his outline of the new Australian laws yet to be formally adopted.
The Afternoon Dialogue, under Chatham House Rules, brought to light the challenges that the SLVK will have in ensuring adequate readiness and credibility before it will be recognised in USA and Australia. Progress is being made on readiness. Due to the nature of the US Lacey Act, the SLVK nor any other certification or verification scheme in the world, will never be formally recognized as proof of automatic compliance. However, assuming that it is seen as a credible verification standard with robust and independent third party review, it will likely be seen by retailers as able to demonstrate the due diligence required under the US Lacey Act. Australia would not be able formally to recognise SVLK. Another question was whether it might be possible to adapt SVLK to accommodate smaller community forests, which drew the response that if standards are lowered, the result is that credibility is lowered. With that remark and there being no more questions the session ended ahead of schedule.
Michael Buckley, raporteur for the afternoon, summarised by saying that all agreed the need for more dialogue and communications. Credibility had again been the big issue, but what happens next may be the challenge for all present, on their return to work.