Chatham House - 26 January 2007

Notes on the development of verification standard of timber legality

in Indonesia

Indonesia Civil Society Groups (ICSG) role in

relation to the coming EU-Indonesia VPA

ICS Collaboration on FLEGT

Since 2004-2006, series of ICSG workshops were held regularly.

Common positions communicated through political lobby works within Indonesia (national and local) and in Europe through several lobby trip by ICS.

Actively involved in relevant meetings and monitor progress of the follow up.

ICSG positions on VPA (#1)

Full engagement of potential stakeholders, including participation of actors instead of the state, is essential in establishing PA.

Clear information and adequate communication on negotiation process and PA establishment, should be accessible widely by both public.

PA must be binding for both parties and undertaken in certain period (time bound) with clear activity and target for each project/programme.

ICSG positions on VPA (#2)

Clear legality definition is very important. Thus, necessary to set up basic criteria to review the legality. Partner should guarantee legality accordance to the scheme, adhere to national definition of legality.

Licensing should cover all products that may contain illegal raw material.

Criteria of verification and monitoring should be part or reflected on negotiation mandate; ensured procedure at partner is effective, transparent and would rely on CS participation.

ICSG positions on Legality SchemeFree and Prior Informed Consent (FPIC)

principles recognized and included in the scheme.

The verification should based on clear traceability and assurance in accordance with treality on the ground.

Implemented by credible institution with independent 3rd party monitoring built in since beginning.

The verification valid for certain period. In the event of proved violation, license will be revoked.

Transparency and stakeholder participation are essential.

Legality Definition and Standard- the debate

… ever since illegal logging exposed. Due to condition of Indonesia’s law &

regulation, many laws conflicting confusion.

Many initiative to define legality and log-tracking system developed UK-Indonesia MoU.

Presidential Instruction (Inpres 4/2005) situate and instruction to resolve conflict of laws & regulations.

Legality Definition and Standard- the principles, etc

Approach toward SFM.Multistakeholder process: gov, private,

civil society: NGO, IPO, academic, standard developer.

Principles: credibility, eficiency, just.Key assurances: legal compliance and

timber tracking (traceability: assurance to the origin source). Aspects include ecological and social.

Legality Definition and Standard- the main process

Starting 2003, 1st draft (ver.1), applied for forest concession (‘HPH’), timber plantation (‘HTI’), timber harvesting permit (‘IPK’), industry and trade.

2007, finalized with all acceptable sources (including small/medium community operation), industry and trade.

Legality Definition and Standard- the definition

Wood is called legal if the justness of wood origin, felling permit, felling system and procedure, transport administration and documentation, processing, and its trade or transferal can be verified as complying with all applicable legal requirements.

TNC

Telapak

TNC

Legality Definition and Standard- the process (#1)

Starting 2003

Several multistakeholder workshops including some

field tests.

Result(s): Draft of PCI and its verification (draft ver.1.0).

ICS workshop to discuss verification standard of timber legality, brought

together institutions work in defining legality and verification scheme.

May 2005

Further multistakeholder workshop. o ICSG concerns: social aspect (FPIC,

tenure) and community-based forest inclusion.

Result(s): Suggested draft to be perfected and harmonized, to be

implemented nationally. LEI to lead and facilitate.

LEI

- the process (#2)

Intensive discussions/workshops. PoD: Standard for many sources, including

community-based forest. ICSG reached a common understanding:

initiative to develop the standard is a tool to reach the ultimate goal of SFM. September 2005

Multistakeholder workshop (take into account stakeholders concerns and

be acceptable by the market and public).

Result(s): Harmonized draft as to other initiative/review (draft ver.2.0).

Set up a multistakeholder adhoc team and steering committee.

MoF review, TFF review, Keurhout Protocool for the Validation of

Claims of Legal Timber in Particular with a view on Legal Origin by

NTAA, WWF’s Nusa Hijau Conditions of Participation (verified

legal requirement), EUROCERTIFOR OLB (Origine et Legalite des Bois) Certification and Control System: Origin and Legality

of Timber.

AdHoc Team

- the process (#3)

AdHoc Team discussions.

Result(s): Improved draft ver.3.1 which include

community-based forest.June 2006

Further multistakeholder workshop.Result(s): Reformulated draft specifying to

acceptable sources/harvesting, processing, transportation and trade of

the timber; improved as draft ver.3.2 for field/pilot test.

Suggest additional private and IPO representation in the adhoc team.

AMAN and BRIK in AdHoc Team. Local consultation workshops and

field/pilot tests; involving local ICSG (August-Nov 2006).

Limited consultations with NGO, IPO, and MoF (Dec 2006).

ICSG concerns: clarifications of adequate response on FPIC and tenure issues, along with other

inputs.Result(s): Improved draft ver.3.3

ICSG concerns: need to include IPO rep within ad hoc team to further

progressing the concern relevant to indigenous people

rights (FPIC, tenure).

AdHoc Team

- the process (#4)

22 Jan 2007

Reporting meeting (handed over definition and

standard) to SC.

.

Final AdHoc Team discussions.

Result(s): Finalized standard and

recommendations regarding

governing body.10 Jan 2007

Final multistakeholder workshop.

Result(s): Final input from stakeholder.

Mandate for follow-up adhoc works and consultations on

to come out with futher system procedurs and

governing body.

Legality Definition and Standard- the key progress (#1)

Facilitator Time Key results/progress

TNC 2003-… o Drafted PCI (field tested) for 2 sources (natural forest concession, timber plantation, harvesting permit), industry and trade (ver.1.0).

TNC May 2005 o Suggested draft to be perfected and harmonized and to be implemented nationally.

o LEI to lead and facilitate the following processes.

LEI Sept 2005 o Harmonized to other initiative/review (ver.2.0). o Set up a multistakeholder adhoc team (MoF,

APHI, LEI, Telapak, TNC, Sucofindo, TFF) and steering committee (gov, private, NGO, IPO, Academician, chaired: MoF SecGen); minister decree formulazed.

Legality Definition and Standard- the key progress (#2)

Facilitator Time Key results/progress

LEI (Ad-Hoc Team)

June-August 2006

o Improved draft (draft ver.3.1): reformulated by specifying the standard according to acceptable sources/harvesting (4 sources: include community-based forest), processing, transportation and trade of the timber. Later on improved as draft ver.3.2 that ready to be tested.

o Add adhoc team member from private (BRIK) and IPO (AMAN).

o Local workshops in 2 places (West and East Kalimantan).

LEI (Ad-Hoc Team)

August-Nov 2006

o Field tests in 8 sites covering 2 timber plantations, 1 natural concession, 2 community-based forest, 2 primary industries, 2 secondary industries.

Legality Definition and Standard- the key progress (#3)

Facilitator Time Key results/progress

LEI (Ad-Hoc Team)

Dec 2006 - Jan 2007

o Further limited consultations with NGO, IPO, and MoF.

o Improved draft (draft ver.3.3): reformulated by removing redundant indicators and verifiers, finalizing draft for general verification guidelines and its norm. Later on finalized and handed over to Steering Committee (January 22, 2007).

o Inputs and notes regarding governing bodies (key functions/roles include: acreditation, verification, licencing, dispute settlement, monitoring).

Legality Definition and Standard- what next

Internal government (MoF) process to come out with decision on legalizing the standard.

Further adhoc works and public consultations (multistakeholder workshops) to come out with futher system procedurs and governing bodies.

www.telapak.orgDukuh Patra 5/52 Jakarta 12870 or Pajajaran 54 Bogor 16143 Indonesia.

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mardi_minangsari@telapak.org

Arbi ValentinusMardi Minangsari

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