On 27 February 2020, Indonesia’s Ministry of Trade (MoT) issued Regulation No 15/2020 on the export of forestry products. Subsequently, on 13 March 2020, the Coordinating Ministry for Economic Affairs issued a press release about a Non-Fiscal stimulus package intended to address the economic fallout from COVID-19. Source: Timberbiz
Both documents aim to boost trade and, as part of this objective, indicate that Indonesian exporters would use V-Legal/FLEGT licences only if these are needed by the exporter.
The implementation of this approach will come into effect on 27 May 2020.
Until then, timber trade with Indonesia follows the established system where both FLEGT licences and V-Legal documents are mandatory.
Internal coordination between MoT and the Ministry for Environment and Forestry, which is responsible for FLEGT and licensing, are ongoing and adjustments are still possible.
The EU delegation to Indonesia has made an official request to the Indonesian authorities for consultation about the new regulation issued by MoT, given the possible implications it would have for the functioning of the EU-Indonesia Voluntary Partnership Agreement (VPA) on Forest Law Enforcement Governance and Trade.
