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In 1980s the Indonesian Ministry of Forestry has set up a regulation system named Indonesian Wood Distribution System in order to ensure the legality and well managed resource.

In implementing the system the logs transported to the industries should be covered by a legal letter of Logs or Sawn-timber clarifying that it comes from the forest concessions who owned the Annual Allowable Harvesting Volume License before it is transferred to the industries. They have to pay Reforestation Fund and Forest Product Levy. In following the system, the industries are implementing the chain of custody system in Logs or Sawn-timber. Moreover, it is a mandatory that all industry's activities should be audited by the Ministry of Forestry twice a year.

Considering of the above brief clarification, it is noted that Indonesian government has been aware of the importance of sustainable forest management and chain of custody. This shows their strong efforts to support the Indonesian sustainable development through the forestry sector.

As long as sustainable forest management is concerned, Indonesia has taken fundamental strides as follows:

  1. The total of permanent natural forest of 112.2 million ha is set aside in accordance to the social-economic and ecological aspects of forest function to human being as follows:
    1. 64 million ha designated as Protection and Conservation Zone. It is totally closed to logging operation and maintained in its natural stage forever.
    2. 68.2 million ha is set-aside as Production Zone to have the economic value to support the national development. For this production forest Indonesia Government implement the Selective Harvesting System, one of the internationally acknowledged proper Sylvicultural System for Sustainable Forest Management. Under this system, the timber harvested license is rendered only to the forest concessionaire holders after evaluating their properly performance in conducting all the substances, standard and criteria of Selective Harvesting System. The annual Allowable Harvesting volume for appointed annual harvesting block is based on the ground survey called Timber Cruising Reports, and Calculated 56% of the potential standing commercial timber. The standing commercial timbers allowed to be harvested are trees with 50 cm and up diameter. The logged over area is maintained and the younger trees is simulated to grow naturally and in healthy condition. The rotation of the harvesting is 35 years. It is condering that diameter increment of the younger trees is 1cm per year; so, after 35 year, the trees with 20 cm diameter grew become 55 cm in diameter. To transport logs come from the such Anuual Harvesting Block, must be covered by Letter of Legal Sourced Logs, which it states that the logs are coming from Legal Forest Concession (Chain of Custody Certificate.
    3. To protect and to save the permanent natural forest, Indonesian government allocated additional 27.8 ha under jurisdiction of Forestry Department and designated as Buffer Zone called Conversion Zone. This Conversion Zone is available for conversion to non forestry purpose to anticipate the rising demand for land in sustaining the national development.
    4. Considering the above elaborated system implemented in Production Forest, although without certification, Indonesian production forest is sustainably managed.
  2. The International institutions such as World Bank, and WWF realize the importance of Sustainable Forest Management (SFM) through certification system. This system is known as relatively a new concept. Therefore, the system and technical infrastructure are not available yet in developing countries. However, Indonesian Government is now preparing of implementing this system. The Indonesian progress in establishing conditions to achieve sustainable forest management (FSM) certificate can be described as follows,
    1. Criteria and Indicators (C&I) of Sustainable Forest
      Management.


      In line with ITTO's C&I on SFM based on the Forest Stewardship Council's Principles (FSC's principles), Indonesia has finalized C&I through multi-stakeholders process. The C&I were initiated by Indonesian Ecolabelling Institute (IEI), an Indonesian independent organization, covering for specific forest:
      1. For sustainable natural forest management consisting of production, environmental and social aspects which are totally 57 indicators.
      2. For Plantation Forest. The drat C&I have been formatted followed by public consultation and field test. Currently, the draft is being finalized and there will be another public consultation in order to obtain approval from related stakeholders.
      3. For Community Forestry, The preliminary draft has been consulted with related stakeholders and it is now in stage of finalization. The next step will be field test.
    2. Certification System

      There have been formulated a natural forest certification system as a national system developed by LEI. To promote and to synchronize this national system with FSC System. MOU has been formulated between IEI and FSC in the form of Mutual Recognition Agreement (MRA) on 3 September 1999 through a Joint Certification Program (JCP). JCP is implemented by Certification Bodies accredited by IEI and FSC.

      In this regards 4 companies accredited by IEI, consist of two domestic and two foreign companies together with two international accredited by FSC appointed as Certification Bodies in Indonesia. Moreover, to have international market recognition, IEI has developed cooperation and worked closely with GTZ, WWF, ITTO, World Bank, Universities and various countries NGO's and other international for a of FSC such as Kerhout Foundation of Netherlands and WWF 95+ of England.

      By above mentioned achievement of certification Indonesia has been identified by ITTO as having made significant progress towards the realization of ITTO objective 2000 which represents the fully commitment of ITTO and its member of moving rapidly as possible to achieve the implementation of sustainable forest management.

1 Testimony from executive president the Indonesian Sawmill and Woodworking Association prior to the subcommittee on Contracts New York City Council Hon. Kathryn Freed, Chairperson. August 7, 2001.

2 Explanation from Director General and Forestry Production Management for and behalf of the Ministry of Forestry of Republic of Indonesia to the honourable Peter F. Vallone, Speaker of the New York City Council.

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