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Indonesian Information Paper

The Sixth Meeting of ACCSQ Wood Based PWG

Kuala Lumpur, 21-22 November 2007

Member Country: INDONESIA

Exchange of Information on the Progress Report of ASEAN

Member Countries in the Wood Based Products Sector

I. OVERVIEW OF WOOD BASED INDUSTRIES

Forest resources play a key role in supplying woods as the raw materials for wood based industries, creating job opportunity and providing income for the government from its export and taxes. In terms of value added providing from wood based products industry, the processing of forest resources should be able to maintain the balance between capacity of production and availability of the raw materials nationally. There is the reason why the wood based industry in Indonesia is oriented toward the production of higher value added and strong competitiveness within international market.

In Indonesia, the wood based industry has been developed since early 1980’s, starting from the establishment of plywood industry, then wood working industry. Since the beginning of 1990’s, pulp and paper industry was started to develop, a number of mills showed strong performance and reached to the middle class industry in the region.

The figure of export of a wood based products (Pulp & Paper not included) in 2006 mentions as follows;

- Value of primary wood products is about US$ 1.56 billions (eq. 2.08 million Ton), increase by 12.8% in terms of value from previous year.

- Value of secondary wood products is about US$ 3.18 billions (eq. 2.83 million Ton), increase by 3.1% in terms of value from previous year.

The figure of export from wood based products (Pulp & Paper not included) in semester I of 2007 as follows;

- Value of primary wood products is about US$ 0.82 billions (eq. 0.93 million Ton), increase by 25.9% in terms of value from the same period last year. (decrease by 11.56% in terms of quantity)

- Value of secondary wood products is about US$ 1.55 billions (eq. 1.35 million Ton), decrease by 0.45% in terms of value from the same period last year (decrease by 11.0% in terms of quantity).

In order to develop the forest sustainability and availability in wood production as the raw material for the local industry, some policies have been taken recently, such as combating illegal logging, similarly the law enforcement in terms of money laundering related to illegal logging activities.

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products. This is done by the government bodies with the involvement of the private sectors, hoping that Indonesian wood based product would be able to compete within international market.

II. STANDARD AND CONFORMITY ASSESSMENT

A. Indonesian National Standard (SNI) Related to Wood Based Products.

There some SNI related to the wood based products that could be categorized on ICS base, as follows;

1. ICS 79 Wood Technology : 120 SNI

2. ICS 97 Housekeeping, Entertainment, and Sport : 141 SNI

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

KAN (National Accreditation Body of Indonesia) is the only accreditation body operating in Indonesia. Basically, this body follows the international accreditation requirements.

KAN is a member of signatories of MRA/MLA of PAC/IAF in the field of Quality Management System (QMS). Environment Management System (EMS) and HACCP System.

KAN is also signatories of MRA/MLA APLAC/ILAC in the field of calibration laboratories and testing laboratories.

KAN is signatories of RA APLAC in the field of inspection bodies.

C. Latest Figures of Certification Bodies and Laboratories Accredited by KAN

Some improvement in terms of number of accreditation figure from Conformity Assessment Body under KAN regime can be seen as follow:

No Type of CAB As of Nov

2005

As of Nov 2007 1 Certification Body for Quality

Management System

19 21

2 Certification Body for Environment Management System

3 5

3 Certification Body for Personnel 5 5 4 Certification Body for HACCP System 5 6 5 Product Certification Institution 16 19

6 Calibration Laboratories 81 86

7 Testing Laboratories 302 331

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D. Adoption of National Standardization Guide fro Conformity Assessment

In order to improve the performance of conformity assessment bodies accredited by the National Accreditation Body (KAN), some measures have taken, one of them is to improve the status of guide from KAN (National Accreditation Body of Indonesia) into PSN (National Standard Guide).

This status improvement is enable the guide to be used by all institutions concerned through out the nation. The guides, among other are for product certification (PSN 302-2004), SNI Marking (PSN 303-2004), coorective 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

So as to coordinate the National Program for Standards Development (NPSD), and to control the development of Indonesian National Standards (SNI), BSN (National Standard Bureau) established the National Technical Management for Standards Development.

In doing that, BSN adopted some standard guides to improve the quality of SNI, they are;

a. PSN 01-2005 : Development of SNI;

b. PSN 02-2005 : Technical Committee for SNI Development;

c. PSN 03-2005 : Adoption of ISO/IEC Standards into SNI.

III TECHNICAL REGULATION

A. Wood Products Exporting Procedure

Decree on the Indonesian Minister of Trade, No. 09/M-DAG/PER/2/2007 dated February 14th 2007, replaced the Decree no 02/M-Dag/Per/2/2006 dated February 2006 regarding export on Forest Based Products stipulated that::

1). Export of goods can be done only by a company that has provided an approval or admission as registered exporter on forest based products from the Minister of Trade, c.q. Director General of International Trade.

2). The implementation of export of wood should provide 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.

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4). All Sawn Timber products is prohibited to be exported, except in the form of S4S with 4000 mm2 cross section and in the form of finger jointed with maximum jointing distance of 1.0 meter.

Decree of Minister of Finance No. 51/PMK.02/2006, dated on July 7th. 2006, regarding the third changes of The Minister of Finance Decree No. 92/PMK.02/2005, dated on July 7th. 2006, related to “the exporting certain items imposed by export tariff”, explained that:

1). Raw Rattan (HS 1401.20.00.00) : export tariff is 20% 2). Processed Rattan (HS 1402.20.00.00) : export tariff is 15% 3). Core Rattan (HS 1401.20.00.00) : export tariff is 15% 4). Skin Rattan (HS 1401.20.00.00) : export tariff is 15%

5). Veneer (HS 4408.10.10.00; HS 4408.10.30.00; HS 4408.10.90.00; HS 4408.31.90.00; HS 4408.39.90.00; HS 4408.90.10.00; HS 4408.90.20.00; HS 4408.90.90.00):

export tariff is 15%

6). Wood Chips (HS 4401.21.00.00; HS 4401.22.00.00;

HS 4401.30.00.00; HS 4404.10.00.00; HS 4404.20.00.00) : export tariff is 5%.

7). Woodworking (HS 4407.10.10.00 up to HS 4407.99.90.00) export tariff is 5%.

Due to the Decree of Minister of Finance No. 51/PMK.02/2006 was launched, The Minister of Finance Decree No. 92/PMK.02/2005, dated on July 7th. 2006 and The Minister of Finance Decree No. 30/PMK.02/2006, are no more valid.

B. Wood Importing Procedure

All wood products are permitted to be imported from overseas but some import duty is imposed follows:

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Annex 4

Indonesian Information Paper

The Sixth Meeting of ACCSQ Wood Based PWG

Kuala Lumpur, 21-22 November 2007

Exchange of Information on the Progress Report

of ASEAN Member Countries

in the Wood Based Products Sector

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