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Small furniture producers grumble on certification
Hundreds of small furniture producers in Jepara regency, Central Java, are complaining about the complicated process and high cost of obtaining a wood legality verification certificate (SLVK), which can reach Rp 50 million (US$3,710)
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undreds of small furniture producers in Jepara regency, Central Java, are complaining about the complicated process and high cost of obtaining a wood legality verification certificate (SLVK), which can reach Rp 50 million (US$3,710).
Eti Kurniawati, 32, the owner of an export-oriented home industry in Krapyak, Tahunan, Jepara, said that the government had offered SLVKs in groups at lower prices.
'In practice it's very difficult to get an SLVK, especially in groups. Currently we have to pay between Rp 40 million and Rp 50 million,' said Eti, who is trying to get an SLVK, told The Jakarta Post recently.
Alimin Arhab, another export furniture producer, shared similar thoughts, saying that furniture producers were required to submit numerous documents to obtain an SLVK, such as a tax payer number (NPWP), business permit, domicile permit, environmental impact analysis, work safety permit, wood industrial product registered exporter license (ETPIK) and rattan product registered exporter license (ETR) from the Trade Ministry and custom registration number (NIK) from the Custom and Excise Office.
'Once all these requirements are obtained, the SVLK will be ready in about 10 months,' Arhab said.
Owing to the requirements and high costs, according to Eti, small-scale producers opted using the services of companies that had obtained an SLVK.
For this, she added, a producer had to pay about Rp 6.5 million per container of products to be exported under the name of the SLVK holder.
Jepara is home to some 12,000 furniture producers. Of them, 75 percent are home industries employing less than 10 workers. The rest are medium- and large-scale industries. Some 200 of them are exporters to Europe, the US, Australia, Africa and other Asian countries.
Chairman of the Jepara branch of the Indonesian Rattan and Wooden Furniture Association (AMKRI), Andang Wahyu Triyanto, said none of his 200-member exporters had SVLKs.
He said SVLKs should not be applied to downstream industries.
Head of certification and advocacy with the Indonesian Furniture Association's Jepara branch, Abdul Kholiq, said that 60 percent of the association's 300-member companies had obtained SVLKs.
