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Bureaucracy and high price hinder certified legal timber for Yogya wood business

Yogyakarta, Ekuatorial – Despite of rising demands from Europe for certified legal timber, Yogya’s small and middle businesses have yet to obtain certification due to difficult bureaucracy and lack of human resources.

Deddy Effendy, owner of Palem Craff Jogja and chair of Legal Wood Group, said exporters were having difficulties to penetrate Europe’s market without legal certification, especially from Indonesia which was still known for its illegal woods.

“SVLK [Indonesia’s legal timber certification] has become the main necessity for craftsmen. Yes, we can still use Export Declaration [if cannot obtain SVLK] but it builds up confidence to obtain SVLK,” said Effendy adding that legal woods will be marked with a green leaf logo written ‘Indonesia Legal Wood’.

“Through SVLK, buyers would know where the wood coming from, its diameter and age,” he added.

Nevertheless, he admitted that it was not easy to obtain SVLK certification, for instance they would have to prepare at least Rp 25 million (US$1,914) for the permit.

“It actually does not take long time but it’s quite complicated. The price is huge around Rp 25 million, they also need to fulfill permit requirements, such as disturbance permit or Hinder Ordonnantie, trade permit or SIUP, and establishment permit or IMB,” he said. “These permits are usually the ones getting stalled to get them to give up and finally turn to brokers.”

Meanwhile, Achis Andrea, owner of Natural House in Yogya, said that she can still export her products to US and Europe without SVLK document.

“I sent the product through Semarang harbor and there’s no problem because I am using Export Declaration or DE. The customs are aware of what DE is because I am currently still processing the SVLK,” said Andrea adding that she can sent one to two containers per export.

Dwi Sudharto, Director of Management and Legal Marketing, Ministry of Environment and Forestry, said that SVLK was required to determine Indonesia’s legal wood quality and protect the country’s forest.

Sudharto said that illegal logging significantly declined during SVLK implementation which started in 2009. The ministry recorded 29 cases illegal logging in 2014, much less than 1,705 illegal logging cases back in 2006.

Nevertheless, he said that 700 entrepreneurs have yet to obtain SVLK document. “To help businessmen obtain SVLK, there are at least 19 official agencies to issue SVLK in accordance to the law,” he said. Bramantyo

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