Indonesia Issues 845 FLEGT Licenses for Timber Exports to EU

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  • TEMPO.CO, Jakarta - Indonesia has issued 845 licenses of Foreign Law Enforcement Governance and Trade (FLEGT) for timber exports worth US$24.96 million from November 15-23, 2016.

    Coordinating Economic Minister Darmin Nasution said in the FLEGT launch in Jakarta on Thursday, November 24, 2016, said that the licenses were dedicated for exports of timber products to 24 EU countries. Included in the products are panel, furniture, woodworking, handicraft, chips, paper, and tools.

    Darmin explained that panel products are the largest FLEGT-licensed products worth US$11.92 million, followed by furniture valued at US$7.25 million.

    "Indonesian FLEGT certificate, which is equivalent to EU certificate, is expected to boost the competitiveness of Indonesian products in new markets," Darmin said in Jakarta on Thursday, November 24, 2016.

    Attending the FLEGT launch were Environment and Forestry Minister Siti Nurbaya Bakar, EU Commission Ambassador to Indonesia Vincent Guerand, wood-based products industries, and certification institutions.

    At the celebration of the issuance of FLEGT licenses, Darmin handed over certificates to ten exporters who represented 100 exporters. Along with Siti Nurbaya and Vincent Guerand, Darmin inaugurate exports of timber products to the EU. 

    "This is a momentum for Indonesia to own timber markets from competitors," Darmin added.

    According to Darmin, the contribution of the forestry sector to the gross domestic product accounted for 1 percent, while its contribution to the state tax revenue stood at 1.3 percent, with foreign exchange of US$5.4 billion by August 2016.

    Siti Nurbaya said that the implementation of the Wood Legality Verification System (SVLK) was an effort to eradicate illegal logging in Indonesia.

    "Indonesia has proven its commitment to the EU market and other global markets to implement a sustainable timber trade that will protect our forests," Siti said.

    Data from the Environment and Forestry Ministry, Indonesia's timber exports had been increasing since the SVLK implementation back in 2013, from US$10.4 billion to US$10.6 billion in 2015.