An 06 Report Indonesia

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Indonesian Information Paper The Fourth Meeting of ACCSQ Wood Based PWG Ho Chi Minh, 22-23 August 2006

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Member Country : INDONESIA

Exchange of Information on the progress report of ASEAN

member countries in the wood-based sector

I. OVERVIEW OF WOODBASED INDUSTRIES

Forest resources have important roles in supplying raw materials for the industries, and in providing sources of income and job opportunities. With a view to obtain the added values, the processing of forest resources should always maintain the balance between capacity in supplying the raw materials and the capacity of the industries. Therefore, the wood based industries in Indonesia are oriented towards products that are of higher added value and competitive at international markets.

The wood-based industries in Indonesia have developed since 1985, with the establishment of sawmills and plywood industries, and subsequently wood working and furniture industries. In the year of 1990s, pulp and paper industries were established. The value of wood-based products export in 2005 was approximately US $ 8.00 billion, which increased from the previous year. Wood-based products export were dominated by plywood and furniture, followed by wood working, and then pulp.

With the purpose to sustain the natural forests and the continuity of raw materials, the forestry industries in Indonesia have undertaken reengineering towards utilization of wood from forest plantations, Industrial Forest Plantations, people’s forests and other sources. The National Movement on Land Rehabilitation (GN-RHL) has been undertaken country wide, in order to rehabilitate forest areas, as well as to provide raw materials for future industries.

In anticipation of the development of standards in the global markets, some efforts have been taken to improve the Indonesian National Standards (SNI) for wood products. These were done by the Government with full involvement of the private sectors, with the hope that Indonesian wood-based products can compete at international markets.

II. STANDARDS AND CONFORMITY ASSESSMENT

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2 There are several SNI related to wood based products could be categorized based on ICS, as follows:

1. ICS 79 Wood Technology : 120 SNI

2. ICS 97 Housekeeping, entertainment, sports: 141 SNI

B. Membership in the Mutual Recognition Arrangements (MLA) of PAC/IAF and APLAC/ILAC

KAN (National Accreditation Body of Indonesia) as the sole accreditation body operated in Indonesia, has followed the international requirements. Up to now, KAN is members of signatories of MRA/MLA PAC/IAF in the field of Quality Management System (QMS), Environment Management System (EMS) and HACCP System. KAN also signatories of MRA/MLA APLAC/ILAC in the field of calibration laboratories and testing laboratories. In the field of inspection bodies, KAN is signatories of MRA APLAC.

C. Latest Figures of Certification Bodies and Laboratories Accredited by KAN (National Accreditation Body of Indonesia)

There are some improvements in the figure of accredited Conformity Assessment Body under KAN regime as follows:

No. Type of CAB

As of Nov 2005

As of July 2006

1. Certification Body for Quality Management System

19 19

2. Certification Body for Environmental Management System

3 5

3. Certification Body for Ecolabel - 1 4. Certification Body for HACCP System 5 9 5. Product Certification Institution 16 18

6. Calibration Laboratories 81 82

7. Testing Laboratories 302 307

8. Inspection Bodies 14 18

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3 In order to improve the performance of conformity assessment bodies accredited by the National Accreditation Body (KAN), some measures have been taken, one of which is improving the status of some guides, from KAN’s Guide (P-KAN) into National Standardization Guide (PSN). Some Guide of KAN are still be used such as : P-KAN 801 for ecolabel; P-KAN 708 for environment; P-KAN 501 for personnel; P-KAN 308 for quality; P-KAN 1001 for HACCP.

This status improvement from P-KAN to PSN enable the guide to be used nationally by all institutions concerned. The guides, among other are for product certification (PSN 302 – 2004), SNI Marking (PSN 303-2004), corrective action measures (PSN 304-2004), general provision for third party (PSN 305-2004), proficiency test (PSN 307-2004), etc.

E. Establishment of the Technical Management Board and Adoption of the Guide on Standards Development

In order to coordinate the National Program for Standards Development (NPSD) as well as to control the development of Indonesian National Standards (SNI), BSN has established the National Technical Management for Standards Development.

In the effort of improving the quality of Indonesian Standards (SNI), BSN has adopted some guides for standards development, namely :

(1) PSN 01-2005 : Development of SNI;

(2) PSN 02-2005 : Technical Committee for SNI Development;

(3) PSN 03-2005 : Adoption of ISO/IEC Standards into SNI (under the process of revision).

III. TECHNICAL REGULATION

A. Wood products exporting procedure

Decree of the Indonesian Minister of Trade No. 02/M-Dag/Per/2/2006 on February 2006 on Export on forest based products stipulated that :

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4 b. The implementation of the export of wood should get the endorsement

from the Agency of Forest-based Industry Revitalization (BRIK), namely for forestry products with the number of HS 4406, HS 4407, HS 4408, HS 4409, HS 4410, HS 4411, HS 4412, HS 4413, HS 4415.20, HS 4418, HS 4419.00.100, HS 4421.90.100, HS 4421.90.300 and HS 9406.00.000. c. Railway sleepers ( HS 4406) prohibited to be exported.

d. All Sawn Timber product are prohibited to be exported, except in the form of S4S with maximum 4000 mm square cross section and in the form of finger jointed with maximum jointing distance of 1,5 meter.

B. Wood Importing procedure

All wood products are allowed to be imported from abroad with specific import duty as follows:

a. Log ; import duty 0 % b. Plywood, import duty 10%

c. Sawn Timber ; import duty 0 % - 5 % d. Moulding ; import duty 5 %