Illegal logging and illegal trade issues have influenced the demand for timber in the international market which requires the legality of timber from producing countries including Indonesia. Indonesia at the forefront of tropical wood-producing countries is trying to increase the trust of wood buyers in the legitimacy of their wood products. One of Indonesia’s efforts to overcome this problem is the implementation of the Sistem Verifikasi Legalitas Kayu (SVLK) policy internationally known as Indo-TLAS (the Indonesian Timber Legality Assurance System). The SVLK has been implemented since January 2013. In the same year, Indonesia and the European Union also signed the Voluntary Partnership Agreement (VPA) in Brussels. Then starting 15 November 2016, V-Legal documents issued by the Timber Legality Verification Authority (LVLK) to the European Union can also act as FLEGT licenses.
Based on Regulation of the Minister of Environment and Forestry P.8/2021 concerning Forest Management and Preparation of Forest Management Plans, and Utilization of Forests in Protection Forests and Production Forests (Tata Hutan dan Penyusunan Rencana Pengelolaan Hutan, serta Pemanfaatan Hutan di Hutan Lindung dan Hutan Produksi), the application of SVLK is mandatory and must be applied to all industrial timber businesses, from upstream (farmers) up to downstream business (industry), including small-scale private forests. The SVLK policy also applies to both domestic and international timber circulation. Although SVLK has been an internationally recognized system and has opened up markets for the Indonesian forestry industry, especially in the European Union, Australia, and the United States, there are many issues for its implementation in small businesses in the forestry sector, as well as private forest farmers.
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