Senin, 27 Januari 2014

RI AIMS TO BECOME BASE FOR ASEAN TIMBER INDUSTRY

 By Andi Abdussalam   
          Jakarta, Jan 27 (Antara) - By promoting the trade of certified timber through its timber legality verification system (SVLK) and the use of raw materials from plantation forests or timber estates, Indonesia hopes to become an ASEAN timber production base.
         In addition, Indonesia is also determined to regain its share of the timber market in Europe, since it has the opportunity to become the first country to export timber products with the "Forest Law Enforcement Governance and Trade" (FLEGT) certification.
         "We have a comparative advantage in the timber industry. Therefore, it is possible for Indonesia to become a production base," Chief Economic Minister Hatta Rajasa said when inspecting the facilities of a timber estate company, PT Pundi Uniwood Industry, along with Forestry Minister Zulkifli Hasan in the Serang district, Banten, last week.
         The Indonesian government hopes to encourage the development of the timber industry through the partnership model. That is expected to help Indonesia's timber industry face competition from the ASEAN Economic Community next year.

 
         Besides having an advantage in the ASEAN region, according to Colin Crooks, the deputy ambassador of the European Union for Brunei Darussalam and ASEAN, Indonesia has the opportunity to become the first country to export FLEGT-licensed timber products to Europe.
         "Indonesia will be able to enjoy large profits in the global markets, especially in the European Union, and in other countries, such as Australia, which have adopted the FLEGT standard," Crooks said in Jepara, Central Java, last week.
         Indonesia is currently shifting away from using raw materials from natural forests to using raw materials from industrial plantation forests or timber estates. That represents a shift in the sources of raw materials for Indonesia's timber industry.
         Forestry Minister Zulkifli Hasan said Indonesia has entered the era of a plantation forest-based timber industry. He pointed out that in the past eight years (2005-2013), the use of raw materials from natural forests by the timber industry has declined from 20.5 million cubic meters in 2005 to 5.54 cubic meters by 2013.
         On the other hand, the use of raw materials from plantation forests has been increasing, from 11.2 million cubic meters in 2005 to 39.80 million cubic meters in 2013. "Going forward, our timber estates will become the backbone of the national timber industry," Minister Hasan observed.
         Along with the shift in the sources of raw materials, the number of timber companies also continues to increase, according to Minister Hasan.
         By 2013, the number of primary timber companies with a production capacity of over 6 thousand cubic meters per annum had increased to 375. They employed 282,878 workers and had a total investment of Rp54.9 trillion.
         The Forestry Minister's expert staff for industrial revitalization affairs, Bedjo Santoso, noted that in 2013, timber companies used 41.8 million cubic meters of wood, of which 33.1 million cubic meters (79.1 percent) came from timber estates. About 4.48 million cubic meters (10.7 percent) came from production forest concessions (HPH), while 3.45 cubic meters (8.47 percent) came from smallholders' forests.
         Santoso pointed out that only 685,388 cubic meters of raw materials were taken from forests cultivated under the Timber Exploitation Permits (IPK) scheme.
         "The plantation forests, including timber estates and the smallholders' forests, form the main pillars of the Indonesian timber industry currently," he added.
         Santoso argued that it was wrong for other parties to claim that the timber companies in Indonesia continue to depend on natural forests for their raw materials. "If Greenpeace, for example, claims that our industries are using natural forest timber in large quantities, the statement is obviously wrong," he noted.
         One of the country's biggest timber product industries is the pulp industry, which, in 2013, produced 5.4 million tons, using 21-22 million cubic meters of raw materials. "Data shows that the need for raw materials can be completely met by the country's timber estates. If Greenpeace claims that our industries still depend on natural forests, it shows that their own data are already outdated," Santoso argued.
         In fact, the Indonesian government has been introducing regulations in the use of the SVLK system for its timber-based products. Earlier, it had applied for its timber products to be exported to Europe.
         Now, it is drafting the same SVLK system for imported timber products.
         "We have discussed it. What remains is the preparation of the legislation. In principle, all the concerned ministries have agreed to it," Director General for External Trade of the Ministry of Trade Bachrul Chairi said recently.
         Chairi noted that the government had decided, earlier this year, to prepare and implement the legislation. That means other countries, such as China, Norway and Italy, would have to accept the system if they hoped to export their timber products to Indonesia.
         "All countries exporting timber products to Indonesia must adopt the system; if they fail to meet the system¿s requirements, they will not be able to export to Indonesia," Chairi added.
         He said that Indonesia should introduce the system to other countries through channels, such as the Mutual Recognition Agreement (MRA), to enable countries to easily accept the system.
         By adopting and introducing new policies with regard to its timber imports and exports, Indonesia is expected to gain a competitive advantage in the timber product industry.
         European Deputy Ambassador Colin Crooks said Europe faced a serious problem 10 years ago, when it used to import illegal wood products from several countries, including Indonesia, which used to export several illegal timber products at the time.
         But both sides are now aware of the problems and are attempting to jointly resolve the issue. The European Union responded to the public demand for sustainable, legal imports through the FLEGT Action Plan, as well as by enacting the European Union Timber Regulation (EUTR), which stipulates that the European Union can only import timber products from forests that have legal permission to be exploited.
        The Indonesian government, in the meantime, Crooks said, had the vision and desire of ensuring that its timber exports to Europe and other nations are legal.
        "Indonesia has spearheaded the fight against illegal felling by adopting a world-class legality verification system," Crooks added, referring to Indonesia's SVLK scheme.***2***

(T.A014/INE/H-YH)
EDITED BY INE

(T.A014/A/BESSR/A/Yosep) 27-01-2014 17:

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