The Readiness of Asmindo Member for SVLK Implementation

Presented by : Ambar Tjahyono

Asmindo (Indonesia Furniture Industry & Handicraft Association)

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BACKGROUND

Asmindo was founded in 1988 by a group of furniture and handicraft manufacturers who realized the importance of having an association to strengthen their existence in the global market.

ASMINDO consists of 24 regional offices spread throughout Indonesia,

with the number of members have reached 3000 companies in year

2013, of which 80% SMEs

Where We Are

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MAP OF WOOD INDUSTRY IN INDONESIA

JAVA ISLAND

OUTSIDE OF JAVA ISLAND

Source of raw material’s (wood, rattan) & wood

processing

Furniture industries & craft center

Kalimantan

Sulawesi Papua

Furniture and handicraft as part of culture

Distinctive styles of woodcarving in certain areas of Indonesia

Clusters of solid wood and rattan furniture production (Java and Bali)

Wood processing industries (Sumatera, Kalimantan, Sulawesi and Papua)

Furniture industry absorbed around 4 million peoples dirrect and indirrect

labour

INDONESIA GOVERNMENT POLICY

Totally Banned Log

Exports

Encouraged to Export Finished Goods, such as: Furniture, Flooring, Doors, Veneer, Plywood etc.

SVLK / TLAS (Timber Legality Assurance System)

SVLK stands for Sistem Verifikasi Legalitas Kayu or Timber Legality Assurance System. The policy has been issued since June 2009. The implementation will be start on January 2014 (for wooden furniture product) .

Policy

•Forestry Ministerial Regulations Republic of Indonesia : P.38 / Menhut – II / 2009 ; P.31 / Menhut – II / 2010 ; P.68 / Menhut – II / 2011 ; P.45 / Menhut – II / 2012

•Other international & national standards related to SVLK :

ISO 17021 ; ISO 17020 ; ISO Guide 65 ; DPLS 13 (version.0) ; DPLS 14 (final version) ; and ISO 9000

Accreditation Body

•Accreditations Body for SVLK is National Committee on Accreditation (Komisi Akreditasi Nasional), known as KAN. (see http://www.bsn.go.id/kan/profile.php?&language=en)

•The main task of KAN is to award accreditation to certification bodies (such as those related to quality system, products, personnel, training, environment management system, HACCP system and forest conservation management system), test/calibration laboratory as well as inspection and accreditation of standardization of other fields in accordance with the requirement, and to give advices to the head of BSN (National Standardization Agency of Indonesia) in setting up accreditation and certification systems.

Standard Logo

V-LEGAL

Working with wood farmers to plant teak in Wonosari, Yogyakarta.

ASMINDO has started collaboration with international Certification

Bodies such as SmartWood, SGS, SCS, TUV Rheinland, and other

prominent organizations such as LEI, TFT and WWF.

ASMINDO has launched Asmindo Certification Care who is currently active

to support members who require VLO/FSC certification.

What we already have achieved so far

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ASMINDO CERTIFICATION CARE

ACC was initiated and launched as a joint program by SENADA/USAID program with ASMINDO in 2007. The growing international market demand for product with legal verification or higher certification. Capacity building to ASMINDO as to be qualified to perform technical assistance in chain of custody practices , both legal verification and or other higher certification. Providing support to ASMINDO members to produce environmentally friendly products and to access global green market.

Background of ACC

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The Service we offer :

VLO ( Verification of Legal Origin ) TLTV ( Timber Legality and Traceability Verification )

FSC CoC ( Forest Stewardship Council ) Chain of Custody

SVLK ( Sistim Verifikasi Legalitas Kayu )

PEFC ( Program for the Endorsement of Forest Certification )

SVLK

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Stages of our Technical Assistance Identification/Gap Analysis Establishing Standard Operational Procedure (SOP) and Work Instruction (WI) In-house Training

Establishing Traceability system

Internal Audit

Certification by third party Certification Body

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Achievement

More than 100 companies have achieved legal verification and or higher

certification in west java, central java, Yogyakarta, and East java.

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Challenges

1. The SVLK requires :

a. All the producers to have a valid AMDAL ( Environmental Impact Analysis

) or UKL and UPL ( Environmental Management Plan ) document.

b. Has a Business permit

For Example :

2. Has the SVLK been recognized market ?

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INDONESIA FURNITURE INDUSTRY SITUATION

The furniture industry is highly oriented towards user’s taste

It is a must to follow market trend and meeting the user’s taste make sure their products attract buyers.

In anticipating the various demand from user / buyer, producers should offer and find various alternatives for furniture materials, including different types of timber.

It should be noted that the domination of china’s products in Indonesia’s domestic market is above products from other countries

Indonesian furniture industry is dominated by two main materials which are timber and rattan, where the export trend of Indonesia is still showing positive, although there has been a 10% decrease 2012 due to the global crisis, but our data until June 2013 already record an increase of 7%, and ASMINDO targeted that by end of 2013 this trend will continue to increase up to 10% compared to last year.

INDONESIA FURNITURE INDUSTRY SITUATION

One of the strategy is by using alternative timber materials and offering new designs to meet the market demand in the countries targeted for export.

Since 2007, ASMINDO has been campaigning for ‘green product’ concept which means furniture products with eco-labeling.

For this ASMINDO has been cooperating with Smartwood/FSC to produce certified products

This cooperation was the embryo of the ASMINDO Certification Centre (ACC) which role will be to provide services and assistance to ASMINDO members in expediting the process for improving system for raw materials management in the company based on an international

standard.

ASMINDO STRATEGY TO ENTER THE WORLD

MARKET

For promotion, ASMINDO also organized an International furniture and handicraft exhibition. These are: the International Furniture and Craft Fair Indonesia (IFFINA) held in March each year since 2008 to coincide with the furniture and handicraft exhibition round in the South Eastern Asia countries.

ASMINDO STRATEGY TO ENTER THE WORLD

MARKET

• In the March 2013 IFFINA, we recorded 4,000 buyers attendance coming from 115 countries, with a total transaction of approximately US$450 million or about 17% of the 2013 furniture and handicraft target export.

• It is expected that by the end of 2013, ASMINDO will be able to reach the value of US$ 2.65bilion as we had achieved before the global crisis.

ASMINDO STRATEGY TO ENTER THE WORLD

MARKET

To improve design, ASMINDO continue to cooperates with universities in Indonesia and overseas, such as with a design institute in Spain etc.

ASMINDO also has a lot of cooperation with international organizations to promote furniture produced by its members.

ASMINDO STRATEGY TO ENTER THE WORLD

MARKET

CONCLUSION

Based on the experience to implement legal verification and

other certification system, we are sure that ASMINDO

members are ready to embrace and adopt SVLK as a nation

initiative to help reduce illegal logging

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TQ

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