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nternational timber buyers welcomed the Indonesian government’s initiative to implement its own timber certification scheme as long as it complied with regulations in their countries.

Currently, 60 firms in forest-based industries have been verified under the system, the Forestry Ministry said.

Paul van den Heuvel, a representative of the European Timber Trade Federation, said in Jakarta on Thursday that European buyers could accept the system once Indonesia signed a voluntary partnership agreement (VPA) of forest law enforcement, governance and trade with the European Commission, which showed its compliance with EU timber regulations.

Under the agreement, Indonesia will be subject to due diligence conducted by buyer countries to be effective in 2013 to validate the legality of its timber and wood products.

Indonesia and the commission have been negotiating on the VPA since January 2007, with both parties due to sign it in May.

If implemented as part of a voluntary partnership agreement, it will fully comply with EU timber regulations, van den Heuvel said at a dialogue between Indonesia, the EU, the US and Japan on the legality.

Last year, the government introduced its new timber legality verification system (SVLK) to ensure the legality of wood products from industrial, production and community plantation forests.

The system is needed to combat illegal logging activities, which, according to official statistics, destroyed more than 1 million hectares of Indonesian forests each year, as well as fulfill international market requirements.

At present, the legality of Indonesian wood exports are directly verified by importers.

Van den Heuvel said European market demand for certified timber had increased in recent years despite declining demand for timber in a whole due to the recent economic downturn.

In the UK, for examples, demand for certified timber increased by 30 percent in 2008 from 10 percent in 2005. In the Netherlands, the market share of certified timber rose to 33 percent in 2008 from 13.3 percent
in 2005.

“The market in Europe as a whole is in a decline due to the crisis, but as soon as building activities increase, the use of timber will also increase and in that respect, Indonesian timber will have its advantages,” he said.

Australian Timber Importers Federation technical manager John Halkett shared a similar view, saying the Australian industry welcomed the new system, which would be a good step for the Indonesian wood industry to promote exports of its timber and wood products, especially in Australia.

“The system with its legal certification would encourage Australian consumers to buy Indonesian timber and wood products,” he said.

US Ambassador to Indonesia Scot Marciel said the new verification system would encourage exports of timber and wood products to the US.

“It should actually help boost exports to the US. The better the program implementation, the easier we’ll accept the products in the US,” he said.

In 2008, the US introduced the Lacey Act, a similar regulation with EU’s timber regulation, which bans the commerce of illegally sourced timber and wood products with penalties for importers that fail to comply with the regulation. (lnd)