A recent change to Indonesia’s timber legality verification regulations could provide “significant opportunities” for companies in the country to sneak illegal wood into supply chains, according to the Environmental Investigation Agency.
The change, Trade Minister Regulation No. 89, exempts 15 wood products groups from government audits that check for compliance with the country’s Sisem Verifikasi Legalitas Kayu (SVLK) program. The SVLK is a key tool in bringing about better forestry and trade governance, the EIA said.
While the change does not affect a rule requiring exporter companies to use SVLK-certified wood, without audits there will no longer be any checks that the companies actually do so, according to the EIA, allowing illegal wood to make its way into the supply chain.
The change also blocks the wood products from entering the European Union market. A Voluntary Partnership Agreement between Indonesia and the EU stipulates that any wood products from Indonesia must have “V-legal documents” that prove the wood’s legality in Indonesia. However, V-legal documents are only available to companies that undergo audits.
“The consequence is that either the VPA must be re-negotiated, the SVLK licensing system must be re-designed or the exempted companies are structurally blocked from accessing the EU market,” said Faith Doherty, EIA forest campaign team leader, in a statement. “This bad regulation—ironically produced to hasten de-regulation—needs to be amended immediately.”
