The Chairman of the Association of Indonesian Forest Concessionaires (APHI), Indroyono Soesilo, said that output from the timber sector fell around 10% in April and that he expects a steeper decline in May. Source: Timberbiz
He commented that action by the government in relaxing a range of regulations to ease the burden on companies is helping with maintaining the work force. He proposed some further steps including expanding the implementation of the Timber Legality Verification System (SVLK) at the global level, strengthening market intelligence for Indonesian manufacturers, arranging business meetings and trade missions, and boosting the function of the Indonesia Timber Exchange (ITX).
The Indonesian Ambassador to South Korea, Umar Hadi said the potential for expansion of Indonesian processed wood products sales based on SVLK to South Korea offers opportunities as South Korea has a law on ‘Sustainable Use of Timber’.
In addition, he said South Korea’s economic growth depends heavily on international trade.
Wang Sutrisna, Finance Director of PT Integra Indocabinet Tbk (WOOD), has said furniture sector companies in Indonesia feel that government policies are not encouraging growth in the sector and should be reviewed.
Wang said that despite having a huge potential there is a lack of upstream/downstream integration in the sector which in other countries delivers many benefits.
The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, stressed the importance of the Timber Legality Verification System (SVLK) related to sustainable forest management to meet export market demand for verification of legality.
In related news the Minister of Industry, Agus Gumiwang Kartasasmita, proposed that SVLK be mandatory in the upstream wood processing industry but voluntary in the downstream wood processing industry as this would ease the burden on SMEs.
The Secretary General of the Ministry of Environment and Forestry, Bambang Hendroyono, said the Ministry plans to make it easier for SMEs to comply with the SVLK regulations and would be providing incentives for the SME sector.
Siti Nurbaya, Minister of Environment and Forestry said, at a panel discussion during the ‘World’s Forests 2020’ (SOFO 2020) hosted by FAO, that while Indonesia’s annual deforestation was over 3.5 million hectares in the period 1996 to 2000 it has fallen sharply to 0.44 million and will continue to fall.
Deforestation rates have declined sharply during the period of the present government which is committed to meeting global targets for forest security.
The minister said Indonesia has 51 million hectares of protected areas or more than 28% of the land and her ministry is working hard to develop a protected area policy to connect fragmented animal habitats separated due to concession allocations.
