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NEWSLETTER
Independent Forest Monitoring Network (JPIK)Newsletter 6th Edition 2017
MAINTAINING SVLK CREDIBILITY
THROUGH INDEPENDENT MONITORING
he Timber Legality Verification System (SVLK) started to be implemented in 2010 as one of the system to implement the Voluntary Partnership Agreement on Law
Enforcement, Governance, and Trade in Forestry Sector (FLEGT VPA). This agreement between the Government of Indonesia and European Union is one of the measures to significantly
reduce illegal logging, as well as increasing government's income from timber export. After going through a number of processes, Indonesia has officially become the first country in the world which received FLEGT License. This means the timbers exported using V-Legal documents
(Documents notifying that the exported timber product has conformed with the timber legality assurance standards in
Source: jpik accordance with the laws and regulations) do no longer need to pass any due diligence, as the system is already recognized by the European Union.
and ensuring the SVLK's
credibility. Indonesia's success in obtaining the FLEGT license has raised the world's attention on SVLK's credibility. Thus, to ensure that SVLK is consistently
implemented in accordance with the relevant regulations,
supervision is a must, which is implemented among others through the SVLK monitoring by an independent monitoring agency.
The Forest Independent
Monitoring Agency (JPIK) as one of the independent monitoring agencies officially registered in the Ministry of Environmental and Forestry has been actively conducting monitoring since the beginning of SVLK
implementation. Even after the official granting of the FLEGT License, JPIK keeps monitoring the SVLK implementation. At the end
of 2016 and beginning of 2017, JPIK conducted monitoring in Central
Kalimantan, in Bereng Malaka Village, Gunung Mas District. The monitoring was acutally a part of the follow-up to JPIK and EIA's finding in 2014 (download the report at
http://jpik.or.id/laporan-hasil-
investigasi-jpik-kalteng), where alleged violation was reported to the law
enforcement agency, yet without any serious response from the latter. Another monitoring conducted by JPIK and EIA found that some frauds were still committed by illegal actors which disrupted the reform of Indonesia's timber industry to SVLK (download follow-up report at
data and information are some of the barriers and challenges encountered in the monitoring process. However, it was not an excuse for JPIK to not collecting accurate evidences. Supports from the government and other relevant stakeholders are crucial for
independent monitoring agencies to ensure the proper
implementation of the monitoring activities.
An independent SVLK
monitoring implementation is crucial to be conducted in regular manner, particularly on companies and license holders who have obtained the SVLK certificate. Other than as a means to maintain and guarantee the SVLK's credibility, it also helps the certification agencies and
independent assessment agencies as the SVLK auditors, and also government, to properly implement supervision and ensure company/license holder's conformity to the relevant laws and regulations. This way, SVLK will maintain its credibility before the
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JPIK Held Capacity Building to
Monitor of SVLK for Members
he sustainability of SVLK implementation monitoring is crucial to be ensured. This is especially the case since the enactment of FLEGT VPA license, w h i c h r e q u i r e s S V L K implementation continuously monitored in order to secure and maintain its credibility. Capacity building for independent forest monitoring is one of the means to support the sustainable SVLK implementation monitoring.
The Independent Forest Monitoring Network (JPIK) which is one of the independent monitoring body in Indonesia organized a three- day capacity building training for its members in Bogor. The training was held in March 2017 and was attended by 16 JPIK members from West Java, Banten, South Sulawesi, W e s t K a l i m a n t a n , N o r t h Kalimantan, West Sumatera, Central S u l a w e s i , L a m p u n g , E a s t Kalimantan, East Java, Southeast Sulawesi, and West Papua.
The activity was entitled
Adva ed Trai i g for SVLK
Implementation Monitoring and Reporting for JPIK Me ers , and
a imed to i nc re a se JPIK m e m b e r s ' c a p a c i t y i n conducting SVLK monitoring, w h et h e r t h ro u g h d e s k - research, field monitoring, as well as preparing monitoring reports and complaint reports to the certification bodies or other relevant bodies should there be any discrepancy found against the criteria and i n d i c a t o r s i n t h e S V L K certificate. It is expected that in t h e f u t u r e S V L K implementation monitoring, JPIK members would be able to perform more thorough monitoring in desk-research as well as field monitoring. Any discrepancies between the field finding with the prevailing regulations obtained from monitoring will be followed-up and made into complaint report which will enable relevant agencies to take the corresponding measures.
Interestingly, in the training, JPIK featured Bapak ( Mr.) Komarudin as the representative of Directorate
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DKP'S IMPLEMENTATION MAY HARM
SVLK'S CREDIBILITY
by: Hendy Saputra (PT TRIFOS International Sertifikasi)
he Timber Legality
Verification System (SVLK) is a mandatory system applied to timber business owners, which was firstly
governed through the Minister of Forestry's Regulation (Permenhut) P.38/Menhut-II/2009 on Standards and Guidance for Assessment on Sustainable Production Forest Management Performance and Timber Legality Assurance on License Holder or in forest rights. This system, which has been going for 8 years has undergone five
Source: jpik revisions and changes of regulation, and currently is governed through the
Minister of Environmental and Forestry's Regulation Number P.30/Menlhk/Setjen/PHPL.3/3 /2016, which was stipulated and started to take into effect on 1 March 2016.
The regulation that governs SVLK consists of 2 concepts to ensure compliance to the timber sustainability and/or legality which is set forth in the implementation regulations
Source: jpik
Non-Producer Exporter). Until March 2017, 3,660 forest-based industries and businesses have been SVLK-certified. (Source: SILK Online, 8 March 2017)
Secondly, ensuring the compliance to standards through Declaration of Supplier Conformity (DKP). The scheme refers to the international s t a n da r ds a do pte d as the Indonesia's National Standard (SNI), which is SNI ISO/IEC 17050 : 2010 on conformity assessment - Declaration of Supplier Conformity - (the standard consists of 2 parts, namely ISO/IEC 17050:2010-1, with Part 1: General Requirements and SNI ISO/IEC 17050 - 2 : 2010 , and Part 2 : Supporting Documents). Based on the standard, the declaration aims to provide guarantee on the conformity of an identified object to certain referred requirements,
as well as to clarify the party r e s p o n s i b l e f o r t h e comformity and declaration. Meanwhile, according to the Minister of Environment and F o r e s t r y ' s R e g u l a t i o n (PermenLHK P.30 of 2016), the Declaration of Supplier C o n f o r m i t y ( DKP) i s a statement of conformity from the supplier based on the e v i d e n c e s h o w i n g i t s conformity to requirements. In brief, it can be interpreted that the Declaration of Supplier Conformity (DKP) in the SVLK scheme i s a declaration issued by a timber supplier which contains guarantee that a timber or timber product to which the DKP is attached has met the requirements of the timber legality assurance standards
i n a c c o r d a n c e w i t h t h e applicable standards. In other words, it is a self-declare scheme. Any license holder who has received the SVLK certificate (both SPHPL [Sustainable Forest Product Management
Certificate] or SLK [Timber Legality Certificate]) is obliged to use the V-Legal Mark on its transport document or on the timber/timber product to mark that the timber is SVLK-certified. The same applies on log and processed timber product which already has DKP; they are entitled to be attached with the same V-Legal mark.
Then, is this DKP scheme which uses self-declare scheme effective to provide timber legality guarantee just like the one provided by an
a certification scheme? Referring to the SNI ISO/IEC
17050:2010 standard, the issuance of a declaration of conformity shall be based on the result of the appropriate assessment activity (such as testing, measuring, auditing, inspection, or
examination) conducted by one party or more, whether a first party, second party, or third party. The entire assessment activities must be properly documented and can be tracked at anytime needed. The implementation of the
Declaration of Supplier Conformity (DKP) in the SVLK has been going for more than 3 years (since stipulated for the first time in the Minister of Forestry's
Regulation/Permenhut P.43 of 2014) until today, and yet is still far below the referred standards when the DKP concept was developed. In general, the DKP issued by a supplier, altogether with the DKP inspection evidence conducted by the receiver, have been more of administrative formality documents. Evidences of conformity assessment that truly reflect the
implementation of timber legality standard in accordance with the DKP issuing agency is hard to find. In addition, the controlling mechanism which has been
arranged through random inspection and specific inspection remains
unimplemented until now. There is no sufficient information on whether a general or specific inspection on DKP conformity has been implemented in accordance with the guidance provided in the regulation. Furthermore, information on monitoring by an Independent Forest Monitoring on the
implementation and use of DKP is also seriously lacking (rarely becomes the object of
monitoring).
This is especially taking place when the DKP for the timbers Sample of DKP issuance:
The farmer/management of forest rights can issue a DKP for the log from cultivation of forest rights which will be sent to buyer/sawing mill industry. Thus, that particular farmer/management of forest rights has guaranteed that the log is compliant with the standards and criteria on timber legality for forest rights. This standard is exactly identical with the one used to conduct assessment on timber legality for forest rights which is conducted by independent parties (LP&VI).
from forest rights are attached to the transport document of forest rights timber (transport note). This matter starts to be addressed in the Minister of Environmental and Forestry's Regulation (PermenLHK) P.21 of 2015 on the Forest Products Administration originating from forest rights, until the currently applicable regulation, which is the Minister of Environmental and Forestry's Regulation (PermenLHK) P.85 of 2016 on Transporting of Cultivation Timber Forest Products originating from Forest Rights. The initial aim of the DKP system was to make it easier to obtain guarantee for timber legality for cultivation timbers from forest rights, both the logs and timbers processed by industry without having to go through costly certification process. Considering that the management and
administration of the forest rights timber need to be made easier, while the guarantee of timber legality must also still be enforced, the DKP concept is therefore applied in that specific scope. Up to now, DKP can be used as a
guarantee for timber legality for log
originating from harvest of forest rights, until other processed products which are produced by industry or artisans as well as registered timber storage which stores logs and processed timber from forest rights. However, with the arising impacts of DKP application to the SVLK
credibility as a timber legality system in Indonesia which has been internationally
recognized, there is a need to conduct a review on this system.
The extension of DKP
implementation may harm the SVLK's credibility as it causes direct negative impacts. Some of the impacts are as follows:
1. The decline of sales value of logs from private forest/forest rights which has received SLK. Most of the forest rights management of cultivation which have received the SLK do not extend their SLK as there is no incentive
from such an SLK ownership. Initially, forest managements expected that the logs they produced could get better access than the logs originating from forest rights which had no SLK. This was
especially the case when there was a plan that IUIPHHK may only receive logs that had been certified (SPHPL and SLK). However, the efforts later turned out to be in vain, as the later policy set forth that IUIPHHK was allowed to receive uncertified logs so long as it was accompanied with DKP. 2. Thus lost the hope of the
SLK forest rights management to get direct access to IUIPHHK without
collector/intermediary, as currently the latter can issue DKP.
management which is evidenced through certification instruments will dramatically lose its popularity, as it won't be able to compete with the facilities given to the DKP. 4. Supports for sawmill
owners who process timber originating from private forest/forest rights to obtain complete license such as IUIPHHK, SIUP (Business License), TDP (Company Registration Certificate), Environment Document as well as other legality documents
significantly decrease. The documents become
verified objects only if the sawmills apply for an SVLK
certification. However, by using DKP, nobody checks the truth or existence of such documents. To prevent this phenomenon into becoming a threat to the SVLK credibility, DKP shall be only allowed as a part of transitional policy, which aims to allow forest rights managements, IKM (Small- Medium Industry), and private forest sawmills to prepare themselves to apply for timber legality
certification. One of the
H
Timber, Business, and Fear that
Befalls Indigenous Community
by:
Wengki Purwanto (FP JPIK Sumbar/PBHI Sumbar) & Yuafriza (YCMM)
Forest is the sustainer and source of life. Indonesian people has always been aware of this fact, as well as the fact that forest as a God's blessing must be protected and managed in the best manner possible for the people's prosperity. This awareness and commitment are expressed in article 33 of the country's 1945 Constitution. To achieve people's welfare, forest management and use shall not only based upon
Source: jpik economic calculation, but instead need to be synergized with ecological and social- cultural values and functions, as well as the local wisdom of the Indonesian indigenous community.
Article 23 of Law 44/1999 on F o r e s t r y , w h i c h w a s substituted by Law 19/2004 sets forth that the use of forest (forest timber) aims to generate optimum benefit to create prosperity of the entire
society in just and sustainable manners. As such, in order to penetrate the European Union market, on 30 September 2013, the Government of Indonesia signed a Voluntary Partnership Agreement (VPA) with the European Union Government on Forest Law E n for ceme n t , Governance and Trade/FLEGT). The partnership was ratified through Presidential Regulation No. 21/2014 on Legitimization of V o l u n t a r y P a r t n e r s h i p A g re e m e nt b et we e n t h e Republic of Indonesia with European Union on Forest Law Enforcement, Governance and Trade of Timber Products to European Union. The goal, c o m m i t m e n t a n d / o r a l l conditions described in the above apply for all Indonesia's territory, i nc l u d in g West Sumatera.
Table 1. Total Timber Production of PT. Salaki Summa Sejahtera and PT. Minas Pagai Lumber's IUPHHK-HA,
Timber Type
Number of Production (piece)
MPL
SSS
2015
Meranti
10.293
11.912
Mix Tropical Hardwood
203
645
Total production
10.496
12.557
2016
Meranti
8.330
7.046
Mix Tropical Hardwood
77
1.035
Total production
8.407
8.081
(source: sipuhh online)
covering the area of 78,000 (seventy-eight thousand) hectares which is also effective for 45 years. The log produced by both companies is predominantly the meranti group.
PT. SSS has obtained the PHPL certificated number 05.Rev.3/A- SERT-PHPL/XI/2013 which is valid from 11 November 2013 to 10 November 2018. PT. SSS was certified by PT. Ayamaru Sertifikasi, a n d h a s u n d e r g o n e t h r e e inspections which resulted GOOD
a d des ri ed as Well-Maintained
and “ustai a le . Meanwhile, PT.
MPL has already obtained the timber legality certificate (S-LK) number 12.r2-SIC-04.02, which is valid from 06-12-2014 until 05-12- 2017 from PT. Sarbi International C e r t i f i cat i o n . PT. M P L h a s undergone two inspections and was declared as pass as it met the inspection norms of each verifier based on the applicable law.
Pursuant to the Minister of Environment's Regulation No. P.71/MenLHK/Setjen/HPL.3/8/201 6 on Procedure for Charging,
Collection and Submission of Provision of Forest Resources, Reforestation Fund, Forest Coverage Remedy, Penalty for Violation in Forest
Exploitation and Retribution of Forest Utilization Business License, PT. SSS and PT. MPL, which are IUPHHK-HA holders are obliged to pay the Non- Tax State Income (PNBP), namely the Provision of Forest Resources (PSDH) and
Reforestation Fund (DR) to the government.
Based on the total production of PT. SSS and PT. MPL (Table 1), in 2015, PT. SSS was obliged to pay the Non-Tax State Income (PNBP) in form of Provision of Forest
Resources (PSDH) amounting IDR 4,320,948,400,- dan DR amounting US$ 980,834.76. The oustanding PSDH was IDR 4,320,948,400,-, while the outstanding DR was
amounting US$ 980,834.81. Meanwhile, from the total production of log timber in 2016, PT. SSS's outstanding
PNPB consisted of PSDH
amounting IDR 2,754,170,320,-, while the outstanding DR was amounting US$ 626,351.70. The outstanding paid by PT. SSS was respectively the PSDH which amounted IDR 2,436,352,060,-, and the outstanding DR which amounted US$ 544,322.44. Meanwhile, in 2015, PT. MPL was obliged to pay the PNBP in form of PSDH amounting IDR 3,960,630,510,-, and the outstanding DR, which
amounted US$ 900,725.76. The oustanding PSDH was IDR 3,673,515,490,-, and the outstanding DR amounted US$ 835,610.71. Meanwhile, in 2016, PT. MPL's outstanding PNPB consisted of PSDH
PT. SSS and PT. MPL have been implementing their obligations to pay the PNBP to the government. However, does the timber, as a high economic value forest product, has optimally contributed to the justice and welfare for the people, p a r t i c u l a r l y those r e s i d i n g surrounding or within the forest? And, has the utilization of forest timber produtc been implemented in accordance with the law (legal aspect)?
According to the Presidential Regulation (Perpres) No. 131/2015 o n t h e D e s i g n a t i o n o f Disadvantaged Area for 2015-2019, the Kepulauan Mentawai District was categorized as one of the three disadvantaged areas in West Sumatera. It turned out that the utilization of forest timber since the 1970s in Mentawai has not brought any significant change to the local people's welfare. The online media
MentawaiKita.com published the following news on 21-12-2016, entitled: Living in Poverty in Timber Producing Area, which highlighted the poverty suffered by the locals of Taikako Hulu Timur Sub-village (which is located in PT. MPL's concession), which was inhabited by 64 heads of household. The sub- village head, Satriman Sabalat, said,
t h e r e i s n o s i g n o f development whatsoever in our village. The roads are muddy during the rain, and students on their way home have to carry their shoes to prevent from dirt so that they can be used on the next day.
Efendi Sapalakkai (Head of BPD of Taikako), during the meeting between Sikakap community with the West Sumatran P r o v i n c i a l G o v e r n m e n t (7/12/2016) demanded that
the Provi ial Gover e t of
West Sumatera facilitate the exclusion of Taikako Village from the HPH location, as at that time, PT. MPL has planted borders for their HPH area in the locals' field and dwelling areas.
We don't want to stay within
the HPH location. We are worried that someday, there would be a policy to evict us under the pretext of protecting state's asset, and they would destroy our homes, just like
whatyouseeon TV, he said.
Meanwhile, the f indings collected by Yayasan Citra Mandiri Mentawai (YCMM) show that PT. MPL committed violations in its operations. These include the construction
of roads outside the legitimate road path corridor declared in its Annual Work Plan (RKT) 2016, n a m e l y i n M a n g a n j o , Saumanganya Village, and Pagai Utara Sub-district, which stretch 400 meters long and 6 meter wide. Meanwhile, according to the Annual Work Plan (RKT) 2016 Number 522.1/3084/PH-2015 dated 21 December 2015, the road construction should have been conducted in Taikako Hulu area, which i s located at c o o r d i n a t e S : 0 2 . 7 2 ° 5 6 ' 6 E:100°1'05.00. However, field finding shows that there was a activities within the prohibited radius or distance, which is based upon article 50 paragraph (3) of Law on Forestry, namely the Simanoppou and Simangaik river riparians, where a stump from logging remnants was found within less than 50 meters from the river and within the radius of less than 8 meters from the tip of cliff with 4 m depth.
In addition, PT. MPL was also suspected as violating the deadline for the rennovation of
Ÿ The Non-Tax State Income (PNBP) is the entire income of the National Government from non- tax sources.
Ÿ Provision of Forest Resources (PSDH) is a levy which is a substitute to the intrinsic value of the forest products that are harvested from the state's forest and/or from the forest products located in forest area which status as forest area and/or state's forest area is cancelled and is designated for development outside forestry sector.
concession borders which should have been completed one year after the license had been issued. In the Annual Work Plan (RKT) 2015,
(Siberut Utara concerning the payment of t imber fee. Although the 3rd audit result by PT. Ayamaru Sertifikasi on the
amounting IDR 37,500/cubic, and that the payment was to be made at the latest two weeks since the signing of the minutes
Chapter II page 3 on the realization c e r t i f i c a t i o n o f P H P L of agreement. However, until
of scope of work area is specified to performance assessment of PT. June 2017, the agreement was
be 0.00% until December 2015, and Salaki Summa Sejahtera page not yet implemented. This in the Annual Work Plan (RKT) 2016
Chapter II page 6 it is specified that u nt i l N ove m b e r 2 0 1 5 , t h e realization of scope of work area for IUPHHK-HA only reached 77.44%. It was not until August 2016 that the border reconfiguration of the Sau man ganyak V i l l age was conducted. PT. Furthermore, MPL did not collaborate with local community cooperative, despite the fact that in its Annual Work Plan (RKT) 2016 it is specified that the company shall collaborate with cooperative at the latest one year after the license is issued.
YCMM also suspected that PT. MPL does not implement proper management of forest timber product (in measurement, testing, m ar k in g , t r a ns po r ti ng , and production reporting) on all of its logs. The suspicion was raised upon finding of a log that was not transported to the log collection location (TPn) nor marked. The findings also show that some logs were used as foundation and body of bridge on the rivers cutting the route for timber transport. The idle logs and those used as bridge foundation and body were not marked, and hence most likely wouldn't be reported in the production report, so that no Provision of Forest Resources (PSDH) will be charged nor any compensation for the forest stand
22 states that the conflict with the local community has been setled by PT. Salaki Summa Sejahtera through a joint agreement which favors both parties and hence prevents further conflict.
However, reality in the field shows different result. Quoting
Pinda Tangka Simanjuntak (Head of YCMM Organization
Division) which was published
on www.mentawaikita.com on 9 J u n e 2 0 1 7 , e n t i t l e d Samongilailai Land Conflict in Tobilanggai, Malancan Village, Siberut Utara, on 9 November 2016, dozens of people of Sirilanggai launched an action of cutting the 30 meter wooden bridge in Tobilanggai. The bridge was used by the company to transport timber. The community cut down the bridge to express their frustration as the cooperative and company have not paid any timber fee to their tribe (Samongilailai). Due to the action, thousands of cubic t i m b e r s c o u l d n o t b e transported by the company.
The conflict was then mediated by the Muspida (Local Leaders D e l i b e r a t i o n ) Te a m o f Mentawai on 12 November 2016 at the Malancan village head's house. Eventually, it was
means, the legal aspect of timber forest product utilization still encounters problems in the field. It is the time, therefore, that the granting of license for timber forest product utilization in Mentawai to be more thoroughly evaluated. The audit result by any assessment agency does not fully guarantee that the IUPHHK- H A h o l d e r o p e r a t e s i n compliance with the law. It is time to ensure that utilization of timber forest product optimally benefits the people in just and sustainable manners. Let's hope so.
value. agreed that cooperative (the Meanwhile, PT. SSS is involved in a
conflict with Samongilailai tribe
company) needs to pay timber
T
DEVELOPMENT OF 'PERIODIC EVALUATION'
(PE) OF FLEGT-VPA EU-IDN
Arbi Valentinus, who is also the National FLEGT Expert/Consultant for Indonesia at EFI FLEGT Facility
he 'PERIODIC EVALUATION' (ref: Annex VI VPA EU-IDN) is one of the 3 existing monitoring/evaluation instruments in the FLEGT-VPA Agreement entered into between the EU (European Union) and its each partner country. Up to now, the FLEGT-VPA Agreements (VPA) that have been signed, ratified by both parties, and implemented are: between EU and Indonesia (IDN) (signed on 30 September 2013, ratified by both parties in April 2014, and started to be effective on 1 May 2014), Ghana (signed on 19 November 2009 and started to be effective on 1 December 2009), and most recently Vietnam
(agreed on 11 May 2017).
The two other instruments are the
Impact Monitoring (IM) ref: Article 12 VPA EU-IDN and Independent Market Monitoring (IMM) ref:
Annex VII VPA EU-IDN). The Periodic Evaluation (PE) aims to 'provide guarantee that the SVLK truly functions as specified in the FLEGT VPA, which in turn will
increase the credibility of the issued FLEGT license'.
For the FLEGT-VPA EU-Indonesia, this Periodic Evaluation (PE) was firstly conducted (PE#01: 2016- 2017) in the end of 2016 and is expected to be completed by the middle of 2017, which will afterwards be reported in the JIC which will be held approximately one year after the agreement on
preparation for
implementation process (and the implementation itself) of 'FLEGT license' is achieved. The agreement on the PE time frame was achieved in the fifth 'Joint
Implementation Committee' (JIC #5) in Yogyakarta on 15 September 2016, upon consideration that (i) VPA between EU and Indonesia was just completed with the implementation of 'Joint Assessment' (ref: VPA Annex VIII) in August 2016, as well as the fact that (ii) the
middle of September 2016 was the time when JIC decided to initiate the preparation process for 'FLEGT license'
implementation, and it was also estimated that one month afterward (mid-November 2016) was the beginning of 'FLEGT license' implementation. This first PE (PE#01: 2016-2017) was organized by 'Sucofindo SBU-LSI' (an independent consultant agency, in compliance with the
qualifications/pre-requisites set forth in Annex VI VPA). Side note: Sucofindo SBU-LSI is a business unit which provides separate services, which is independent from the Sucofindo SBU-SERCO unit which is the KAN accredited LVLK as 'other' independent agency which is determined as one of the LVLK by the Ministry of
Environmental and Forestry in the SVLK element. The absence of 'conflict of interest' is further iterated with a written
The term 'Periodic Evaluation' (PE) is an official/formal term in the VPA with Indonesia. As for the VPA with Ghana and other partner countries (other VPAs that have been signed or in negotiation process), the same instrument has/can be recognized under the name of
'Independent Audit' or 'Independent Monitoring'. The different naming/term aims to prevent confusion in the VPA with Indonesia, since in SVLK, a similar term has been earlier
2017), East Java (3-6 May 2017), Jambi (9-13 May 2017), Bali (17-20 May (17-2017), and Jakarta Greater Area (April-June 2017).
statement from PT. Sucofindo, which was accepted by the PE Tender Selection Panel (multi- stakeholders representation) and also represented both parties in the Agreement, namely EU & Indonesia).
Evaluation was conducted with the objective/target of evaluating the functioning of each element in the SVLK implementation (which comprises elements such as: Ministries/government agencies, accreditation agencies,
verification/assessment agencies, as well as licensing agencies, independent monitoring agencies, and business units).
Evaluation is conducted regularly (once a year), by referring to the evaluation standards developed by multi-stakeholders. There are 23 evaluation standards that have been developed and serve as the basis to implement evaluation for each 'target' of the SVLK element being evaluated. The formulation and development of PE evaluation standards by the multi-
stakeholders formulation team (PE Assistance Team) together with the PE Sucofindo SBU-LSI
formulation team was conducted throughout February 2016
-October 2016, which included broader public consultation on 28 June 2016 (at Bidakara, Jakarta).
The PE was implemented by the Sucofindo SBU-LSI PE Evaluator Team (assisted by the PE Assistance Team) during April - June 2017. The PE was conducted in (i) census format through the entire part of each (i.a)
verification/assessment agency (LVLK/LPPHPL) and license issuing agency (V-Legal Document Issuing Agency), and (i.b) relevant national government agencies (and relevant government agencies in evaluation sector), as well as (ii) sampling on (ii.c) business unit (by considering the representativeness of the entire business unit
typology/category covered in the SVLK), and (ii.d)
independent forest
monitoring agency (IFM). The first PE was conducted in several provinces, namely Yogyakarta(3-9 April 2017), Central Java (10-15 April 2017), Central Kalimantan (18-22 April 2017), East Kalimantan (24-30 April
The Sucofindo SBU-LSI PE Team currently (July 2017) is in the process to compile/consolidate all records from the evaluation and is working on its PE#01
results: 2016-2017. The temporary pointers (including the notes on the process and inputs/recommendations - based on the entire process of the first evaluation - for future PE evaluation) will be reported to the technical meeting forum of VPA (or JWG = Joint Working Group, or JEM= Joint Expert Meeting; note: it will take place in the second week of August 2017 (8-10 August 2017)) and report its final result to the upcoming JIC (Joint
I
REDESIGNING ISPO FOR THE IMPROVEMENT
OF INDONESIA'S PALM OIL INDUSTRY GOVERNANCE
indonesian Sustainable Palm Oil (ISPO) Initiative is a policy of the Ministry of Agriculture which aims to ensure the enforcement of laws and regulations relating to palm oil and thus ensure the sustainable palm oil production. Some other objectives of this initiative are enhancing Indonesian palm oil competitiveness in the world market as well as
participating in reducing green house gas emission and pay more attention on environmental issues. SAs the basis of the policy to implement this initiative, in 2011, the Ministry of Agriculture issued a Minister of Agriculture's Regulation (Permentan) No.
19/Permentan/OT.140/3/2011 on Guidance for Indonesian
Sustainable Palm Oil/ISPO dated 29 March 2011 in Medan, North Sumatera, which coincides with the
a iversary of the O e Hu dred
Years of Indonesian Palm Oil
I dustry .
The Minister of Agriculture's Regulation consists of 7 principles, 41 criteria, and 128 indicators. The seven ISPO principles are: (1) p l a n t a t i o n l i c e n s i n g a n d m a n a g e m e n t s y s t e m , ( 2 ) implementation of technical guidelines for palm oil cultivation and processing, (3) environmental management and monitoring, (4) responsibility toward workers, (5) social and community responsibility, (6) community economic activities empowerment, (7) sustainable business development.
After the Minister of Agriculture's Regulation No. 19/Permentan/OT.140/3/201 1, in 2015, the Ministry of Agriculture issued another Minister of Agriculture's Regulation No.
11/Permentan/OT.140/3/201 5 on Indonesia Sustainable Palm Oil Certification System/ISPO. The newer Minister of Agriculture's Regulation accommodates the previous Minister of Agriculture's Regulation Number
98/Permentan/OT.140/9/201 3 on Guidelines for Plantation Business License, Law of the Republic of Indonesia Number 39/2014 on Plantation (article 62), and Presidential Instruction No. 6/2013 on Suspension of New License and Refinement of Governance of Primary Natural Forest and Peatland. ISPO certification is
mandatory for any estate company which operates a plantation cultivation business which is integrated
with processing business, estate company which conducts plantation
cultivation business, and estate company which conducts plantation products
processing business.
Oppositely, it is voluntary for
Smallholding which land originates from government's
land allocation, Estate Company , smallholder plantation, as well as smallholder's land which receive facility from an Estate Company, Independent
Smallholdings which plantation is built and/or managed
independently by the
Smallholder, or Estate Company which produces palm oil for
T
Vision for Improvement and
Multi-Stakeholders Roles
he ISPO Certificate currently owned by the palm oil companies have not brought any significant impact to the
sustainability and preservation of plantation management. Various problems remain in relation with legality aspect, which causes deforestation of natural forest and peatland, which endangers bio- diversity (flora and fauna), causes fire and land fire, as well as trigger human rights violation and conflict in local/indigenous community. This problem has costed the Government of Indonesia billions of rupiahs.
The aforementioned problems lead to a serious question on the effectiveness of ISPO
implementation, and in response, in June 2016, the Government of Indonesia through the
Coordinating Ministry of Economic Affairs formed the ISPO
Strengthening Team which aims to implement fundamental
improvements in certification and standardization for Indonesia's sustainable palm oil industry. This momentum is a big opportunity for environment and human rights observers and practitioners to give feedbacks pertaining to
improvement of palm oil industry governance in Indonesia, including JPIK, which has been experienced in advocating for the SVLK issues. Jointly with the Indonesia's Civil Society Group, currently JPIK is actively invoved in a series of discussions with other stakeholders to promote and formulate the re-designing of ISPO. Until the end of December 2016,
the ISPO Strengthening Team has organized a series of closed discussions with various stakeholders to promote and formulate the ISPO re-designing focus. In addition,
a series of meetings have been also implemented by various parties to discuss about the Draft Presidential Regulation (Perpres) on Indonesia's Sustainable Palm Oil. The Draft Presidential Regulation aims to substitute the Minister of Agriculture's Regulation Number
11/Permentan/Ot.140/3/201 5 on Indonesia Sustainable Palm Oil Certification System/ISPO.
In order to gather feedbacks, the government held public consultations on the strengthening of the Presidential Regulation on Indonesia Sustainable Palm Oil in five regions, namely Sumatera, Kalimantan, Sulawesi, Papua, and lastly in Jakarta. The same activity was also held by JPIK and Kaoem Telapak, which consolidated different CSOs at sub-national level to allow them to give feedbacks and recommendations pertaining to the discussions on scoring standard and the body of the Presidential Regulation. Currently, the CSO consolidation and public consultation have been conducted in three regions.
They were, respectively, in Sumatera (Pekanbaru, Riau Province), Kalimantan
(Palangkaraya) in May 2017, and in Sulawesi in June 2017. The consultations for two other regions are planned to be held by August 2017.
Feedbacks and
BOX:
Various products by JPIK and Kelompok Masyarakat Sipil Indonesia (Indonesia Civil Society Group) on ISPO and palm oil can be accessed on the following link:
1. Position Paper of Indonesia Civil Society Group Skema Sertifikasi Sawit Berkelanjutan Harus Dirancang Ulang (The Need for Re-Designing of the Sustainable Palm Oil Certification Scheme) http://jpik.or.id/skema-sertifikasi-sawit-berkelanjutan-harus- dirancang-ulang/
2. Position Paper of Indonesia Civil Society Group - Sumatera Chapter Menuju Praktek Perkebunan Kelapa Sawit yang Berkelanjutan Secara Ekologis, Ekonomi dan Sosial (Toward Ecologically, Economically, and Socially Sustainable Palm Oil Plantation Practices) http://jpik.or.id/menuju-praktek-perkebunan-kelapa-sawit-yang- berkelanjutan-secara-ekologis-ekonomi-dan-sosial
3. Position Paper of Indonesia Civil Society Group - Kalimantan Chapter Sistem Sertifikasi Bukan Sekedar Label Sawit Berkelanjutan (Certification System Is Not Just a
Sustainable Palm Oil Label) http://jpik.or.id/sistem-sertifikasi-bukan-sekedar-label- sawit-berkelanjutan/
4. Policy Paper: Mengapa Pembahasan RUU Perkelapasawitan Harus Segera Dihentikan (Why the Discussion on Palm oil Bill Must Be Stopped
Immediately)http://jpik.or.id/kertas-kebijakan-mengapa-pembahasan-ruu- perkelapasawitan-harus-segera-dihentikan/
5. Position Paper of Indonesia Civil Society Group - Kalimantan Chapter Sistem Sertifikasi Bukan Sekedar Label Sawit Berkelanjutan (Certification System Is Not Just a
Editor: Nike Arya Sari Penulis:
Dhio Teguh Ferdyan, M. Kosar, Nike Arya Sari, Yoyon Mujiono,
Arbi Valentinus, Hendy Saputra, Wengki Purwanto, Yuafriza
Jaringan Pemantau Independen Kehutanan
Jl. Sempur Kaler No 30 Bogor INDONESIA Telp. 0251 8574842
Email: jpikmail@gmail.com
