In the midst of the fire and haze crisis, the government is planning to issue regulations that will ease timber export requirements. In fact, by easing timber export requirements, rogue exporters can sell illegally obtained timber. Why doesn't the government tighten regulations on forestry business licenses to ensure the safety of the remaining forests?

The Fight Against Illegal Logging

Indonesia has long struggled against illegal logging. Millions of hectares of Indonesia's forests have been destroyed by illegal logging. This is why Indonesia, along with five other countries - Cameroon, Congo, Ghana, Liberia and the Central African Republic - signed a Voluntary Partnership Agreement (VPA) with the European Union. The aim is to protect the remaining forests from destruction.

What does a VPA do?

A VPA is like a highway to the European timber market. By signing the VPA, it is easier for Indonesia to supply timber to Europe. The only requirement is that the wood products exported by Indonesia must be certified or legal. For this reason, Indonesia has developed the SVLK (Timber Legality Verification System). Illegal timber that does not pass SVLK inspection is not allowed to be exported. This system has proven effective in recent years in combating illegal logging in Indonesia.

How Does SVLK Work?

Since its implementation in September 2009, SVLK has proven to be a credible system as it operates independently in proving the legality of Indonesian timber through administrative and physical checks directly in the field. With the SVLK, industry players in Indonesia are more orderly as they are forced to implement good governance, prioritizing environmental safety and product quality. Products that pass SVLK inspections can be exported by including V-Legal documents issued by SVLK. In the long run, SVLK will benefit Indonesia as a timber supplier in the international market, as Indonesian timber products are viewed positively and have a good reputation.

What is the Impact of the Enactment of MOT 66/2015?

Indonesia was on the verge of equating the SVLK with the FLEGT (Forest Law Enforcement, Governance and Trade) license, a license issued by the European Union to timber suppliers deemed eligible, when the Minister of Trade announced the issuance of Minister of Trade Regulation No. 66/2015 on Forestry Industry Export Requirements. This Permendag provides timber exporters with ease in exporting. They only need to obtain an export declaration letter (ED) without the need to have a license as a registered exporter, customs documents, or V-legal documents (Kompas, October 16, 2015). As soon as the MOT was announced, the issuance of FLEGT licenses for Indonesia, which could facilitate the export of Indonesian wood products to the European Union, was halted. This decision is a clear setback, both economically and in the fight against illegal timber trade that has begun to bear fruit through the implementation of SVLK. The MOT overrides the SVLK and will only open up opportunities for exporters to sell illegal timber products.