GET VERIFIED LEGAL OR LOSE MARKETS!

This week European timber trade representatives visited Indonesia to discuss the need for
independently audited wood products to meet new international market demands.
A  group  of  timber  trade  representatives  led  by  the  UK  Timber  Trade  Federation met
timber industry  leaders from Indonesia to discuss how new  timber trade regulations and
policies are toughening up demand for verified legal and certified timber.  
Asian  exporters  face  new  challenges  in meeting  international market  requirements; US
and EU legislation, and public and private sector purchasing policies are now combining
to make  independently audited  legal and sustainable  timber a  requirement  for continued
access to those markets. 

Over 100  Indonesian  timber and  furniture producers  attended  a national  trade  forum  in
Kemayoran, Jakarta to hear how international markets for timber are changing.  The US
government  has  already  amended  the Lacey Act  in May  2008  so  that  it  now makes  it
illegal  to  import  illegal  timber  into  the  US.    The  EU  is  currently  finalising  its  “Due
Diligence” legislation that will require all EU importers to assess their timber sources and
eliminate  illegal  timber  from  their  supply  chains.    Both  are  responses  to  Indonesian
government calls for international legislation to eliminate the trade in illegal timber.

This demand is now being pushed along by new EU Green Procurement Guidelines, and
EU  Member  State  governments’  timber  procurement  policies,  that  dictate  buying
decisions in at least 20% of the EU market.  More importantly buyers are paying a small
premium  for  such  timber.    In  addition delegates heard  that negotiations  for  a new EU-
Indonesia timber licensing agreement (the Voluntary Partnership Agreement) are likely to
continue with  objectives  to  conclude  the  deal  by  July  2009.   Once  agreed  the  scheme
would  guarantee  the  legality  of  all  Indonesian  timber  exports  with  important  market
implications for Indonesian producers.  

Responding on this matter, Ambar Tjahyono, Asmindo Chairman said, “Asmindo support
all  form  of  cooperation,  certification  and  legalization.  That  is  why  Asmindo  is  very
concern on public forest certification to fulfill the market demand. It is hoped that it will
give a certain value that is profitable and production value to the organization member to
breakthrough international furniture market. In public forest, the farmer are able to plant,
take care of and enjoy the harvest, thus furniture industry are helped.” 
Rachel  Butler,  UK  TTF  explains,’The  TTF  is  on  the  industry’s  side;  we  want  a
sustainable  timber  trade  because  we  believe  in  timber  and  we  are  committed  to
supporting our suppliers to meet the changing requirements in the EU and UK.’

European  timber buyers heard  the good news  that  Indonesian  industry  is well placed  to
meet  this  challenge.    Independent  auditing  of  current  timber  harvesting  under  various
private  sector  schemes  meets  requirements  for  legality  in  most  sensitive  international
markets, and once the new national scheme requirements are available, modifications in
business  practice  for  those  companies  currently  operating  legal  verification  schemes
should  be  minimal.  For  further  information  contact  Rachel  Butler  of  TTF (rbutler@ttf.co.uk).  

About FLEGT-VPA
FLEGT is an abbreviation for Forest Law Enforcement, Governance, and Trade. FLEGT
is an initiative of the European Union to curb illegal logging and foster sustainable forest
management  through  trade  mechanisms.  For  further  information  on  FLEGT  please
contact  Thibaut  Portevin  (Thibaut.portevin@ec.europa.eu)  or  Andy  Roby
(Andyroby2001@yahoo.com).  

About ASMINDO
ASMINDO  is  a  place  for  Indonesia’s  furniture &  craft  businessmen,  and  also  for  half  made
industrial  furniture. ASMINDO  is  an  independent  organization,  non-politic  and  non-profitable
organization. ASMINDO also becoming  the  facilitator  for Furniture & Craft  Industry  in  trading
business, marketing/promotion act, also as a  legal help according  to  the current bills which also facilitate the communication between member of the organization and the government, Furniture & Craft companies,  local social trading organization called ‘Koperasi’, crafter’s workshops, and half made  furniture & craft. Today, ASMINDO’s member are more over  than 2000 companies with 21  ‘Komda’ spreading across Indonesia. For further information contact Sae Tanangga of ASMINDO (saetanangga@asmindo.com).