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n the early 2000s illegally logged timber was estimated to account for 80 percent of the total national harvest in Indonesia. This illegal trade caused widespread deforestation, impacted the livelihoods of forest-dependent communities, robbed the government of billions in revenues, and destroyed vital habitat for wildlife.

Following campaigns highlighting the environmental and social impacts from illegal logging, many buyers from Europe stopped purchasing Indonesian timber. It has taken 15 years to turn this around.

Just recently, Indonesia officially celebrated a historic achievement: Indonesia has become the first country in the world to qualify under the European Union’s timber licensing scheme known as ‘FLEGT’.

Indonesia is now able to export verified legal timber products to the EU without hindrance. Indonesia’s timber industry — large producers of paper and construction timber as well as small producers of bespoke furniture — can now access lucrative European markets much more easily.

Previously European importers had to prove that wood products from Indonesia had not been illegally logged; a costly and time consuming process.

With the roll-out of the licensing scheme, all wood products sourced directly from Indonesia are now presumed legal under the EU Timber Regulation.

For European importers of timber products, Indonesia has just become cheaper, easier and less risky than any other supplier in the world. And for European consumers, Indonesian timber products have just become more attractive as they are certified as legally sourced.

The first shipment of FLEGT licensed timber left on Nov. 15 bound for ports in the UK, Belgium, and Germany. This is a major step forward in the fight against illegal logging and deforestation.

It will help ensure sustainability for Indonesia’s precious forests and for the millions of people whose livelihoods depend on them. By tackling illegal logging head-on, the introduction of FLEGT is also good for the global environment as it will help Indonesia tackle its carbon emissions.

It also represents a major success for the Indonesian economy. With growing volumes of trade between the EU and Indonesia, the Ministry of Environment and Forestry estimates that furniture exports could grow by 200 percent by 2019 and create thousands of jobs and livelihoods in rural and urban areas.

Indonesia’s success is based on the creation of its own national licensing scheme — the Sistem Verifikasi Legalitas Kayu (SVLK). SVLK was developed over many years with UK support through a series of consultations involving government, the private sector, and civil society.

Today more than 13 million hectares of natural forest are certified legal under SVLK — an area the size of Java. The export value of the forest sector has already risen to almost £10 billion in 2015, creating thousands of jobs and supporting growth amongst small and medium enterprises.

And the number of reported cases of illegal logging has reduced significantly, by 20-fold over the last 10 years according to government figures.

On a visit to Central Java earlier in the year, I saw for myself how SVLK is certifying ‘legal wood’ throughout the supply chain, from the forest to the factory gate. Even more impressively, the scheme is flexible enough to accommodate micro-businesses as well as medium and larger companies.

I met young entrepreneurs, aspiring business men and women, as well as experienced factory owners, all dreaming of becoming exporters or taking growing shares of the global market.

They told me that they had signed up to SVLK individually or in collectives because it was the key to opening the door to exports. And they knew that trade is key to creating profit, employment and better prospects in their communities.

The UK has been a proud supporter of Indonesia’s effort to tackle illegal logging and place its forest sector on a more sustainable footing.
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Trust in SVLK and FLEGT could easily be eroded should illegal shipments go undetected.

Working closely with the Ministry of Environment and Forestry through the Multi-stakeholder Forestry Program, the UK helped facilitate the design, development, and roll-out of SVLK, and its recognition under the EU FLEGT certification scheme.

Indonesia’s success in tackling illegal logging has brought important benefits for the UK in return, as FLEGT certification has made it easier for businesses to import from Indonesia.

The UK is the largest importer of Indonesian wood products in Europe, receiving roughly a quarter of the US$1 billion exported to the European Union annually. We are confident that the UK will continue to be a major market for SVLK licensed wood products from Indonesia following our eventual exit from the EU.

But the work does not end here. Trust in SVLK and FLEGT could easily be eroded should illegal shipments go undetected.

All parties involved in this success need to remain vigilant and ensure the scheme continues to cement progress towards better forestry practice.

Although illegal logging may no longer be a major driver of deforestation thanks to SVLK, land conversion and land grabs associated with the booming palm oil sector are a growing cause of concern.

As was the case 15 years ago with illegal logging, NGOs are campaigning for better environmental practices in the palm oil business.

Indonesia is now the world’s biggest palm-oil producer. It is an economically critical sector accounting for $18.6 billion in exports in 2015, or about 2.1 percent of Indonesia’s gross domestic product.

As was the case 15 years ago, the question is can Indonesia balance environmental concerns and secure access to international markets?

In short, can Indonesia learn and apply the lessons from the SVLK experience to the palm oil business through the reform of its International Standard for Palm Oil (ISPO). Can Indonesia create a palm oil standard that is flexible enough to accommodate small holders as well as large producers and be credible internationally? If successful, Indonesia could use international trade to drive reforms in forest and land governance necessary for sustainable economic growth, and in the process boost its economy.

 The UK is committed to continuing to work in partnership with Indonesia to address these challenges. We have been an advocate for pragmatic solutions to the world’s environmental issues for decades.

Following the successful international collaboration on SVLK and FLEGT, we stand ready to support Indonesia’s leadership on supporting the emergence of a sustainable palm oil industry.

The future of Indonesia’s forests and the livelihoods of millions of people depend on it.
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The writer is the British Ambassador to Indonesia, ASEAN and Timor Leste.