Indonesian Timber Company Receives World’s First FLEGT License

Indonesian Timber Company Receives World's First FLEGT License

Indonesian Timber Company – The Indonesian Wood Panel Association (Apkindo) celebrated a historic day, namely the first shipment of Forest Law Enforcement, Governance, and Trade or FLEGT licensed products to the European Union today.

 

Four Apkindo members have obtained the first FLEGT licenses in Indonesia and the world, namely PT Korindo Ariabima Sari, PT Kayu Lapis Indonesia, PT Kutai Timber Indonesia, and PT Mujur Timber.

 

Simultaneously, the four corporations also made their first shipment today when they obtained their FLEGT licenses. A total of 23 containers will be shipped by these companies from Tanjung Priok Port to Antwerp, Belgium; Hamburg, Germany; and two British cities, namely Tillbury and Liverpool.

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“Today we will symbolically carry out the release of nine containers from the four companies,” said Secretary-General of Apkindo A. A. Malik in Jakarta.

 

In the same place, the Director of Processing and Marketing of Forest Products at the Ministry of Environment and Forestry (KLHK) Rufi’ie explained that the exporters of forestry industrial products have obtained the first FLEGT license are not the only four companies. The FLEGT license is issued at 00.00 WIB for every exporter who wishes to process V-Legal documents.

 

“They might have prepared it right on the date it will appear,” said Rufi’ie. The V-Legal document is proof that the exporter has met the requirements of the timber legality verification system (SVLK). Starting 15 November 2016, V-Legal documents for shipment to the European Union will have the words “FLEGT License” written in the upper right corner. Until 02.00 WIB there were 36 FLEGT licensed documents issued by the timber legality verification agency (LVLK) and controlled by the Ministry of Environment and Forestry.

 

One document is for one container to be shipped to the European Union. The first FLEGT licensed containers will sail the oceans for approximately 1 month and arrive in destination cities before Christmas 2016. Once there, local importers, exporters from Indonesia, the Indonesian government, and the European Union will welcome them with a ceremony. The FLEGT license is the European Union’s recognition of the SVLK.

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With this license, products from this country are no longer subject to due diligence, which is costly and time-consuming, in the 28 EU member states. Indonesia is the first country in the world to obtain a FLEGT license. With these privileges, the government has the ambition to dominate the Blue Continent market. In 2015, Indonesia controlled 11% of the European Union’s wood and paper product market share. In fact, the market share for tropical timber is larger, at 33%.

 

The SVLK came into force in June 2009 to ensure the legal aspects of the wood in the form of wood origin, logging permits, systems, and procedures for cutting, transporting, processing, and trading. For business actors in the upstream sector, SVLK is in the form of a certificate of lease production forest management (PHPL).

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