Craftsmen Have Yet to Benefit from SVLK
Furniture craftsmen arrange their products at the Bukir furniture market in Pasuruan, East Java, two weeks ago. The furniture market offers items produced by the local cottage industry, which has experienced a slump as furniture exports stagnate.
JAKARTA, KOMPAS – Awareness among furniture craftsmen of the importance of securing timber legality assurance system (SVLK) certification varies from province to province.
In East Java, the provincial government actively helps facilitate the processing of SVLK documents for small and medium craft and furniture businesses. However, in Central Java, a dissemination promotion of the advantages of SVLK certification among small and medium furniture firms is minimal.
"So far, promotion on the need for small and medium furniture businesses to secure SVLK certification is very limited. Many craftsmen, especially in small towns, do not know the process or costs involved in obtaining an SVLK certificate. This must be addressed," the chairman of the Central Java branch of the Indonesia Furniture Industry and Handicraft Association (Asmindo), Anggoro Ratmadiputro, said.
In fact, SVLK certification is very important to ensure that the timber used or traded is obtained from legal sources. By obtaining SVLK certification, consumers abroad will no longer doubt the legality of the wood being used, which will in turn benefit entrepreneurs and artisans.
According Anggoro, less than 20 percent of about 1,500 craft and furniture companies in Central Java have obtained SVLK documents. At present, there is a program to help furniture companies obtain SVLK certification so that it costs less. "In the past, the process to obtain a SVLK certification cost me about Rp 50 million," Anggoro said.
He suggested the SVLK documents be given when furniture companies buy timber from state forestry company INHUTANI or other government agencies. "So, every entrepreneur who obtains legal wood for furniture will automatically be given an SVLK certificate," he said.
Meanwhile, in East Java, the local provincial government and the Industry Ministry have jointly launched a program to facilitate the issuance of SVLK documents to small and medium furniture firms. With such a program, small-scale furniture companies can increase their exports.
According to the head of the industry and trade office of East Java province, Ardi Prasetiawan, since 2014 his office has helped 39 small and medium enterprises (SMEs) in the province to obtain SVLK documents.
"Priority is given to SMEs as they are more vulnerable and should be assisted in developing their products. It is different from big industries, which have large turnovers and so have the money to obtain SVLK documents on their own," he said.
In East Java, there are 815 small and medium companies that employ 19,960 people, with a combined production value of Rp 1.3 billion a year. As many as 143 others are categorized as big companies with 19,753 workers and a production value of Rp 1.8 billion a year. In the wood processing industry in East Java, there are 4,118 companies involved that employ 17,830 workers.
Reducing costs
Commenting on a complaint by craftsmen that obtaining SVLK certification is still too costly, the director general for processing of sustainable forest products at the Environment and Forestry Ministry, Ida Bagus Putera Parthama, said the government had reduced the cost of SVLK certification, especially for home furniture businesses.
The commitment is stipulated in Forestry and Environment Ministry Regulation No. 1/ 2016. The standard cost for verification and the SVLK certification is Rp 7,787,500 per home industry. A certificate is valid for six years.
"The cost does not include the cost of field inspections, which include accommodation and transportation. To reduce the cost, business owners are advised to use nearby certification bodies," Ida Bagus said Wednesday.
In addition, if craftsmen form a group of three to five people, the cost is lower. Therefore, the Rp 80 million paid by medium craft industries is far higher than the standard set by the government.
"The high cost may occur because a company uses consultants or brokers to carry out the verification. Under the certification system applied since 2003, businesses should first obtain various licenses, such as nuisance permit, environmental management, building permits and various other basic licenses," he said.
The director of processing and marketing of forest products at the Environment and Forest Ministry, Rufi \'ie, said the ministry had also eased the procedure for obtaining a business license for a home furniture industry. In order to get a nuisance permit, for example, the company only needs a recommendation letter from local people.
Commenting on the inability of Indonesian furniture products to compete with those from Vietnam, Rufi\'ie said that Vietnam was currently developing its own SVLK system that would make its products even more competitive. Vietnam is waiting for ratification after completing negotiations with the EU in November last year. On the other hand, on November 15, 2016, Indonesia become the first country in the world to gain certification for its wood-based products under the European Union Forest Law Enforcement, Governance and Trade (FLEGT) action plan.
Vietnam has sent representatives to Indonesia at least three times to learn about the SVLK. "Vietnam just wants to defend its furniture industry and benefit from the FLEG," he said.
Stock decline
Based on data from Perum Perhutani in Central Java, teak tree supply decreased from 157, 885 trees in 2015 to 108,959 trees in 2016. Industrial forest trees also decreased in number from 93,551 in 2015 to 66, 514 in 2016. Industrial forest trees consists of pine, mahogany, rosewood, sengon, resin, and jabon.
Meanwhile, there is a shortage of rattan supply in Cirebon but an oversupply in rattan producing areas, such as Kalimantan and Sulawesi, a problem that he said should be resolved. "The central government, local administrations and industry players in the upstream and downstream industry should meet to solve the problem," Julius Hoesan of the advisory board of the Employers Association of Indonesian Furniture Industry, said.
(ICH/SYA/WHO/KRN/IKI)
