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Indonesia

WRI attempts to keep the information featured in the Risk Tool's country profiles up to date. However, the legal frameworks and the situation in each country are constantly changing. Please help us maintain the Risk Tool by submitting information about relevant updates to forestlegality [at] wri.org.

Last updated: August 2016

Laws & Regulations

Forestry Laws

Indonesia is a decentralized democratic republic, in which district governments and municipalities provide most governmental services. However, the ultimate authority over the management of forests lies at the national level. A patchwork regime of laws and regulations continues to create confusion between operators and authorities, especially as regards land tenure issues and permitting procedures for concessions. Indonesia’s system of regional autonomy has caused a drastic proliferation of law-making bodies; more than 1,000 bodies and individuals currently have law-making powers under this complicated system of overlapping or contradictory authorities over forest resources at the provincial and district-levels of government. This number is likely to further increase as provinces, districts, and other tiers of government are carved out from existing regions.

Despite the conflict and overlap of authority amongst the different layers of government, there are several national policies that form the basis of Indonesia's forest governance regime. Below are listed the most relevant Indonesian environmental, forestry-related and trade laws and policies.

The following sources are recommended for additional information:

  1. WWF-GFTN and TRAFFIC’s Common Framework for Assessing Legality of Forestry Operations, Timber Processing and Trade Annex. This is a very useful reference for those interested in learning more about Indonesia’s regulations, principles, indicators, criteria of forestry operations, timber processing and trade.
  2. CIFOR’s report, Forest and land-use governance in a decentralized Indonesia. This legal and policy review clearly outlines the division of authority between national, provincial and district governments in the implementation of various arenas of forest governance, such as spatial planning, land tenure conflict, indigenous rights over forests, and the permitting process for land conversion.
  3. The European Timber Trade Federation's Timber Trade Portal. The portal provides an overview of the process related to the permitting, harvesting, processing, transport and trade of timber in Indonesia.

The Forestry Law (No 41/1999) 

Indonesia's national Forestry Law came into effect in 2000, and regulates the management of forests in Indonesia. Forestry Law No. 41/1999 replaced the Basic Forestry Law (Law No. 5 of 1967), which had focused mainly on timber management, and not conservation. In contrast, the 1999 Law includes some conservation-oriented policies. It divides forests into three categories, including: Conservation Forests, Protection Forests and Production Forests. It also empowers the Ministry of Forestry to determine and manage Indonesia’s Kawasan Hutan (National Forest Estate). 

Presidential Decree No. 16/2015 on the Ministry of Environment and Forestry 

The 1999 Forestry Law reaffirms the Ministry of Forestry as the lead authority for almost all things related to forests. The text (Article 4, Paragraph (2)) says that the responsibilities of the Government (Minister of Forestry) are to: 

  1. Govern and manage all affairs related to forests, forest areas, and forest products; 
  2. Determine or change the category of certain lands as forest areas or otherwise; and 
  3. Administer and determine legal relations between people and the forests, and legal undertakings related to the forests.

This authority now falls under the newly re-structured Ministry of Environment and Forestry (MoEF). The Ministry of Forestry was officially merged with the Ministry of Environment in October 2015 through Presidential Decree No. 16/2015. The new agency retains most of each ministry’s respective sub-divisions but notably consolidates two Directorates under one umbrella: The Directorate of Social Forestry and Environmental Partnerships, and the Directorate of Law Enforcement for Forestry and Environment. 

Law No. 6 of 2014 on Villages 

This law has enormous implications for the forestry sector by expanding the authority of villages to manage their own assets and natural resources, revenue and administration. It specifically reallocates a specific portion of the State budget to village administrations, providing all of Indonesia’s villages with annual discretionary funding for making local improvements that support poverty alleviation, health, education and infrastructure development. 

Law No. 23 of 2014 on Regional Governance 

This law effectively weakens Indonesia’s system of regional autonomy by withdrawing authority over natural resource management from district and city governments and shifts it to provincial and national-level governments. 

Government Regulation 32/2000

This regulation was passed shortly after Law 41/1999, effectively revoking Regulation 6/1999, which was being exploited by jurisdictions trying to seize more forested area than they had traditionally held. As a result, the Regulation reinforces the Ministry of Forestry as the primary body to administrate the handling of licensing, permitting, and extraction of commercial timber operations in Indonesia. 

Presidential Instruction on Illegal Logging 

The purpose of this Presidential Instruction is to establish the government’s commitment and responsibilities to eradicate illegal logging from within Indonesia’s forests and to stop its distribution throughout the Indonesian territory. It orders the government and several named Ministries to take action against anyone harvesting, collecting or distributing timber without an authorized license; to stop anyone who receives, buys or sells illegal timber; to expose anyone who fails to carry the necessary certificates during transport, etc. 

Law No. 18 of 2013 on the Prevention and Eradication of Forest Degradation 

This law strengthens law enforcement by providing additional legal certainty and defining the penalties for those engaged in forest destruction. It clearly defines which activities are banned, on the part of individuals and organized groups who log in forests, as well as organizations involved in the illegal timber trade and officials engaged in the falsification of permits. A special investigative unit to investigate such forest-related crime is to be formed within 2 years of the law's enactment. 

Ministry of Forestry Decree SK.323/Menhut-II/2011, Suspension of Granting New Licenses and Improvement of Natural Primary Forest and Peatland Governance (“Moratorium”) 

This Regulation suspends the issuance of new harvesting licenses in primary forest and peatland areas. This also forms part of the Government’s implementation plan of Indonesia’s policy to reduce emissions from deforestation and degradation (REDD). The moratorium is an important step towards meeting Indonesia's voluntary commitment to reduce emissions, but there are several unresolved issues concerning the need to review existing concession licenses, improve law enforcement and address land tenure issues. The moratorium excludes concessions leased before May 2011 and does not protect secondary forest. The moratorium has been extended twice by the administration of President Susilo Bambang Yudhoyono in May 2013, and by President Joko Widodo in May 2015. 

Ministry of Forestry Regulation, P. 59/Menhut-II/2009, Proposed 5-year Strategic Plan for Forestry Sector Revitalization 

Chapter 2 of P.59/Menhut-II/2009 proposed a 5 year-strategic plan for the revitalization of the forestry industry sector. The strategic plan aimed at optimizing the use of forest resources, and included the following activities: 

  1. Management of Production Forests to ensure that they do not overlap with other land rights/concessions 
  2. Management of natural forest resources use 
  3. Development of plantation forests (HTI) and Community Plantation Forest (HTR) 
  4. Restructuring of primary forestry industries 

Government Regulation No 3/2008 Forest Management Plan 

This Regulation amends Government Regulation No 6/2007 on forest arrangement and formulation of forest management plan as well as forest exploitation. 

Government Regulation 25/2000 on Government Authority and Provincial Authority under Regional Autonomy 

The 2000 Government Regulations assigned aspects of forest administration responsibilities to the central and provincial Indonesian governments. Regulation 25/2000 gives central governments the lead responsibility and authority with respect to: classifying Forest State lands; formulating national macro-level forestry and estate crop plans; determining criteria and standards for forest-use licensing; setting the appropriate tariffs on forest utilization, royalties, reforestation funds, and investment funds for the costs of forest conservation; establishing quality control for production and processing; and managing conservation areas and parks. The Regulation also establishes the key elements of the provincial governments’ forest administration duties. They include: formulating macro-level plans for forestry and estate crop areas that cross boundaries; developing guidelines for conducting forest inventory and mapping; managing the establishment and enforcement of boundaries between Production Forests and Protection Forests; and managing the allocation of permits for the utilization of wood-based forest products. 

Government Regulation 34/2002 on Forest Administration and the Formulation of Plans for Forest Management, Forest Utilization, and the Use of the Forest Estate 

This was designed to be the implementing regulation for Law 41/1999, Articles 5, 7, and 15. It also provides an elaboration of the new regulatory framework as it pertains to classification of state-controlled forest lands and the harvesting, processing, and marketing of forest products. This regulation also divides Indonesia’s government-controlled forests into three categories: Conservation Forests, Protection Forests, and Production Forests (See Article 2). Under this Regulation, the national government is given far-reaching powers to control timber extraction in Production Forests, and it gives the Minister of Forestry the power to grant all commercial timber utilization permits. The Ministry is also the lead authority for approving any processing mill permits, regulating trade, transport, and distribution of forest products. Export of forest products and timber is managed by the Ministry of Industry and Trade. 

Commercial Timber Utilization Permits 

Created by the Regulation 34/2002, these permits are used to regulate all forest activities, such as harvesting, processing, marketing, planting and managing timber species in designated Production Forest Areas. These may be allocated to individuals, cooperatives, private sector companies or state-owned enterprises. The permit term is 55 years for concession areas where logging will occur, but 100 years if timber is harvested from plantations. 

Relevant Laws and Regulations Related to the Permitting Process for Establishing and Managing Timber Concessions:

Processing/Manufacturing Laws

Ministry of Forestry Regulations: P.16/Menhut-II/2007 (Primary wood industry) & P.43/Menhut-II/2009 (Revision of Regulation of P.16/Menhut-II/2007)

Both Ministry of Forestry Regulations are to ensure that all timber processing companies are subject to stated conditions within the laws and regulations, including the maintenance of records to demonstrate that processing quotas have been respected.

Law No. 32/2009 on Environmental Protection and Management

The issuance of forest management licenses are conditional on the completion of an environmental impact assessment (AMDAL). An EIA (AMDAL) is required for all plantation forests, pulp and paper industries, and other wood working industries. This law outlines all the requirements for an AMDAL.

Minister of Forestry Regulation Concerning Measuring and Testing of Forest Products (No P. 45/2011)

This Regulation dictates the measurement and testing of forest products in order to protect state rights, to protect the quality of forest products from the ecological and economical point of view and to improve forest products competitiveness and sustainable management of forests. Measurement and testing shall be carried out by authority officers to determine the type and volume/weight of all forest products from state or private forests. The Regulation further provides for procedures for the measurement and evaluation of forest products.

Trade Laws

Regulation of the Minister of Trade No 09/M-DAG/PER/2/2007, Provisions on the Export of Products of Forestry Industry

This Regulation provides for rules on the export of products of forestry industries. Only forestry manufacturers recognized as Approved Exporters of Products of Forestry Industry (ETPK) by the Minister of Trade may export products of forestry industries. Procedures for obtaining recognition as ETPK are provided for in the text. Forestry companies recognized as ETPK shall send to the Director General of Foreign Trade annual production plans, realization of production per semester, annual export plans, and export realization per semester. The Regulation further lays down technical criteria for determining forestry-industry products which can be exported.

Timber Legality Verification System (The Sistem Verifikasi Legalitas Kayu - SVLK)

The SVLK is a timber legality verification system. It has various components, and provides the definition of timber legality, control of supply chain, verification system and independent monitoring systems. The SVLK is authorized under the following regulations:

The SVLK implementing regulations have been revised several times to strengthen and close loopholes. Recent regulations have been designed to ease the process for smallholders and small-and-medium enterprises to obtain SVLK certification. MoFR No. 45/2012 included provisions group certification schemes from collectives of small businesses and enterprises whose total investment capital was less than a threshold of IDR 500 million, or ~USD 37,000. P.43/2014 included a new procedure called the Supplier’s Declaration of Conformity (SDoC), which reduces the burden of certification for certain suppliers (household industries, private forests, timber depots and industries that entirely source their timber from private forests or SVLK-certified sources) by allowing them to self-assess their fulfillment of certain requirements for obtaining SVLK.

FLEGT/VPA

One of the main drivers of deforestation in Indonesia is illegal logging, which is why Indonesia and the EU have partnered through the FLEGT-VPA to help prevent illegal logging in Indonesia. Since 2013, Indonesia has required a V-Legal Document to accompany timber products from the point of harvest to their final destination after export as a way to assure the legality of the goods from start to finish. Indonesia has received the go-ahead to begin shipping FLEGT-licensed timber in late 2016 (Antara 2016).

Under the Voluntary Partnership Agreement between the EU Member States and Indonesia, there are several significant institutions in the functioning of the SVLK (Indonesia’s Timber Legality Assurance System). These include the Ministry of Forestry, provincial and district offices, the National Accreditation Body (KAN), the Conformity Assessment Body/CAB (LP and LV), and the Licensing Authorities (LV). As part of their functions under the Freedom of Information Act (UU14/2008), they are obliged to disclose forestry related information to the public.

Trans-Pacific Partnership Agreement (TPP)

Indonesia was not a signatory to the Trans-Pacific Partnership (TPP) free trade agreement, which means that the binding obligations of the TPP’s environmental chapter will not affect Indonesia’s domestic forest governance reforms. Indonesia has signaled that it intends to join the TPP in the future (Jakarta Globe 2016), but it may take years to revise the necessary laws to bring itself into compliance with the TPP.

Asia-Pacific Economic Cooperation (APEC)

Indonesia is a member of APEC, joining in 1989. APEC is the premier Asia-Pacific economic forum, and its goal is to support sustainable economic growth and prosperity in the region.

Regional and Bilateral Free Trade Agreements

Indonesia is party to 8 free trade agreements, 6 of which were negotiated through the ASEAN block, and 2 of which are bilateral agreements with Japan and Pakistan. Indonesia is currently negotiating bilateral agreements with Australia, India, Chile, Hong Kong, and the Republic of Korea. At the top of Indonesia’s trade agreement agenda is negotiating the establishment of the Indonesia – EU Comprehensive Economic Partnership Agreement, which is hoped to improve conditions for foreign investment, and the Regional Comprehensive Economic Partnership (RCEP) multilateral pact with China.

Indonesia is also a party to the following conventions: CBD (ratified), UNFCCC (Non-Annex I Country), Kyoto Protocol (ratified), UNCCD (ratified), ITTA (Producing Member), RAMSAR (Contracting Party), World Heritage (accepted), NLBI (Member State), ASEAN (member country), and ILO 169 (not ratified).

Transport Laws

WWF-GFTN & TRAFFIC Indonesia Annex (2012)

All forest products removed from State forests must be accompanied by correct documentation for transportation. According to Article 33 under the Constitution Law (1945), all natural resources that have an impact on people’s prosperity are controlled and utilized by the State Government. Because forest products are therefore classified as State assets, the Government regulates the administration and distribution of these products.

The following Laws and Decrees are some of the applicable timber and wood products transport policies in Indonesia:

Customs Law No 10 (1995) and Customs Law No 17 (2006) concerning revision of Customs Law No 10 (1995)

The Customs Law 10/1995 and its revision (No 17/2006) are relevant in terms of the legal penalties they specify for failure to comply with export procedures. For example, exporting goods without the required legal documents carries a maximum sentence of 10 years imprisonment and fine of up to Rp. 5 billion (~US$400,000).

Minister of Environment and Forestry Regulation No. P.95/Menhut-II/2014 and No. P.43/Menhut-II/2014.

These two regulations outline revised provisions for forest product export controls under Indonesia’s Timber Legality Assurance System.

Government Regulation No 34 (2002) concerning on Forest Governance and Planning Use for Utilization and Management of Forested Areas; Government Regulation No. 6 (2007) on Forest Administration and Compilation of Forest Management Plans, and Forest Utilization. 

Both regulations mandate that transport of forest products originating from the national forest estate be accompanied by required documents that specify the legality of the product in question (Section 119).

Regulation of Directorate General of Forestry Enterprises No. P.3/VI-BIKPHH/2014 on Guidance for Implementation of Administration of Timber from Natural Forests

Describes the documents required for accompanying timber to be transported; different documentation is required depending if the timber is transported within/outside the authorized concession boundaries, or if the timber being transported is roundwood, sawnwood, recycled wood or wood waste. Transport documents are usually valid for one-use only (one commodity, one permit holder, one direction of transport).

Minister of Environment and Forestry Regulation No. P.21/MenLHK-II/2015 on Administration of Forest Products that Originate from Forests with Rights holders

The regulation specifies two types of valid transport documents for forest products harvested from forest areas with recognized rights: (1) The “Transport License” (Nota Angkutan) serves to verify ownership, authorization and legality of the forest products being transported in accordance with the type of forest product being transported. (2) The Letter of Specification of Origin (SKAU) is issued at the local level by the village head, and specifically valid for “owned” forests outside Java, Bali and Lombok (Chapter II/3/3).

Ministry of Forestry Regulation P.53/Menhut-II/2009, Entered and Use of Heavy Equipment for Forest Utilization License

All lorries and other vehicles transporting forest products must have a valid registration license and number in order to operate in Indonesia.

Ministry of Industry and Trade Decree 68/MPP/Kep/2/2003, Inter-Island Timber Trade

All companies transporting wood between islands must have a valid license. Several other regulations and amended regulations relate to the need for clear evidence to show documents and corresponding markings of timber products for transport shall be demonstrated by companies and carriers in accordance with the laws and regulations.

Tax Laws

For information on Indonesian trade laws, the WWF - GFTN and TRAFFIC’s Common Framework for Assessing Legality of Forestry Operations, Timber Processing and Trade Annex is a valuable resource. It sets out all the legal references based on criteria and indicators. Ministry of Forestry Regulation P.18/Menhut-II/2007 provides technical guidelines for collection of Payment of Forest Resources Provision (PSDH) and Rehabilitation Fund (DR) to ensure companies fill in their tax returns in accordance with their effective professional activity. There are a number of regulations regarding the compliance of tax returns from timber processing companies, stating that all value added tax (PPN) and income tax (PPh) must be paid. These include:

UU No 7/1983 concerning Income Tax; this law has been revised four times via UU No 7/1991, UU No 10/1994, UU No 17/2000 and UU No 36/2008. The most recent revision is UU No 36/2008 concerning Fourth Revision of UU No 7/1983.

UU No 8/1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods; this law has been revised three times via UU No 11/1994; UU No 18/2000 and UU No 42/2009. The implementing regulations for this law are governed by Government Regulation N. 1/2012 concerning implementation of UU 8/1983 and revisions.

Law No. 8 of 2010 on Anti-Money Laundering

This law replaced Law No. 15 of 2002, and notably authorized a greater number of institutions to conduct money laundering investigations. The law covers money laundering related to forestry and environmental sector crimes.

Documents / Legal Texts

CITES Agreement Information

CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement among governments whose purpose is to ensure that international trade in wild animal and plant species does not threaten the survival of these species. A total of 182 countries have agreed to the CITES regulations, which is a legally binding agreement. It is up to each CITES Party to draft its own domestic legislation in order to comply with its CITES obligations.

See current list of member countries here

Indonesia ratified the Convention in 1978. Indonesian Government Regulation No 7/1999 concerning Prevision of Plant and Animal species pertains to Indonesia’s obligations under CITES. The law requires government officials to ensure all species that are exported /imported do so legally and authorized by the appropriate agency.

There are no Appendix I plant species listed in Indonesia. However, there are several CITES listed species in Appendix II and III, which are traded commercially in Indonesia. These include:

Aquilaria spp. This tree species produces timber that can supply agarwood, a fragrant wood extremely valuable for incense, perfume and traditional medicine. Overharvesting has led to the listing of Aquilaria species in CITES. Some of these species such as Aquilaria malaccensis are found across Southeast Asia, including Indonesia, of which Indonesia is one of the largest suppliers to the international market. Harvesting of the Aquilaria spp. is regulated by Indonesian forest law, but Indonesia is one of few countries to have set quotas for harvesting and trading the species. There are also recorded plantations of the Aquilaria spp. in Indonesia. The CITES listing for Aquilaria spp. applies to all parts and derivatives, except seeds; seedling or tissue cultures obtained in vitro, in solid or liquid media, transported in sterile containers; and cut flowers of artificially propagated plants.

Gonystylus spp. Commonly known as ramin, this species is highly prized and popular as a decorative timber for furniture and interior accessories, but also for veneer and plywood. Deforestation in natural forests are associated with excessive harvest of ramin through illegal logging for international trade. Concerns regarding the illegal harvesting of ramin in Indonesia, with illegal trade between Indonesia and Malaysia, led to the CITES listing for Gonystylus spp. in Indonesia. It applies to all parts and derivatives of the tree, except seeds; seedling or tissue cultures obtained in vitro, in solid or liquid media, transported in sterile containers; and cut flowers of artificially propagated plants.

Gyrinops spp. Gyrinops spp. is another timber species that can produce agarwood. The CITES listing for Gyrinops spp. applies to all parts and derivatives, except seeds; seedling or tissue cultures obtained in vitro, in solid or liquid media, transported in sterile containers; and cut flowers of artificially propagated plants.

Taxus sumatrana Sometimes known as Chinese yew, this tree is used for furniture and joinery. The CITES listing for Taxus sumatrana applies to logs, sawn wood, veneer sheets, plywood and essential oil (excluding finished products packaged and ready for retail trade).

Please see the following resources for more information specific to the trade in these species and CITES:

Other resources:

Forest Resources

Resources Overview

Indonesia has nearly 91 million hectares of tree cover (FAO 2016a), approximately 2% of the world’s remaining forest area (FAO 2016b). Its forests house roughly 3,982 species of amphibians, birds, mammals, reptiles and fish, over 30,000 species of plants (BAPPENAS 2015). Over half of its terrain is covered with forest, and at least half of which is primary forest (MoEF 2015). This places Indonesia behind only Brazil and the Democratic Republic of Congo for most national forest cover. Sadly, Indonesia has lost much of its forests in the last 50 years.

Between 1990 and 2015, Indonesia lost 28 million hectares of forest, most of it previously untouched, virgin forest (FAO 2016a). This widespread deforestation and degradation is mainly the result of logging, mining, large-scale agricultural conversions, settlement, subsistence farming and fuelwood production.

Forest Management

Management Overview

In general, the majority of Indonesian forest lands are owned by the government. Due to its decentralized system, these areas are typically managed by public administrators and business entities with limited ownership rights. The precise amount of land managed by communities is currently unknown, but estimates from the Rights and Resources Initiative and (Royo and Wells 2012) suggest that between 3.7-6 million ha of land is managed under Indonesia’s regulatory mechanisms for community-based forest management: Village Forests (Hutan Desas), Community Forests (Hutan Kemasyarakatan), Community Timber Plantations (Hutan Tanaman Rakyat), and Company-Community partnership arrangements (Kemitraan). Following a major constitutional court decision in 2013, which found that community lands do not fall under State jurisdiction (i.e. the Ministry of Environment and Forestry), in 2015 the national government announced its intentions that 12.7 million ha of forest would be distributed to indigenous peoples (Purwanto 2015).

Indonesia has three categories of forest land: Conservation Forests, Protected Forests, and Production Forests. In 2014, the Ministry of Forestry reported that the total area of Indonesia’s production forests (i.e. limited and permanent production forests) was over 56million hectares (MoEF 2015). These areas are comprised of primary forests, secondary forests, plantations, non-forested land, and unclassified areas. Indonesia also houses nearly 32 million hectares of forest concession area, which includes both natural forest production forests and permanent production forests. However, much of this concession area is known to be inactive due to issues with land tenure conflicts and overlapping permits.

The Indonesian Government has outlined its plan to address climate change in its recently released Intended Nationally Determined Contribution (INDC), which committed to reducing GHG emissions by 29% below business-as-usual levels by 2030. The government has also pledged to take actions in areas critical to reducing GHG emissions through deforestation and land-use change, such as peatland restoration, review of its concession permitting process, and preventing emissions from wildfires.

In addition, Indonesia is trying to combat the illegal timber trade by through its Voluntary Partnership Agreement with the EU; late 2016 will mark the first shipment of certified legal, FLEGT-licensed timber to the EU (Antara 2016).

Transparency

According to Transparency International’s 2015 Corruption Perceptions Index, which measures perceived levels of public sector corruption in countries around the world using a score of 0-100 (where 0 is highly corrupt and 100 is completely clean), Indonesia is ranked 88 out of 168 countries assessed. It scored a corruption index rating of 36 out of 100, meaning it is perceived as a very corrupt country. These numbers represent a modest improvement from Indonesia’s ranking in 2013. These improvements can be attributed to reforms in state institutions, and could improve further if Indonesia’s Corruption Eradication Commission (KPK) is successful in prosecuting cases related to corruption amongst politicians and law enforcement agencies (Halim 2016).

Access Transparency International Corruption Perception Index 2015.

The World Bank Worldwide Governance Indicators (WGI)

The World Bank compiles a set of Worldwide Governance Indicators for all world economies. These indicators are important barometer in terms of risk assessment. Between 1996-2014, Indonesia has made enormous strides in WGI’s governance indicators such as improving Voice and Accountability, Government Effectiveness, and Political Stability and Absence of Violence. However, conditions have not significantly improved as regards to Rule of Law and Control of Corruption, and have actually declined in the arena of Regulatory Quality. Countries are ranked (percentile rank model) for each of the six governance indicators on a scale from 0 to 100 where 0 corresponds to lowest rank and 100 corresponds to highest rank (better governance). Access the Indonesia Governance Indicator Data Report.

Freedom of Information Act of Indonesia This Act was passed in 2008 and came into effect in 2010. It makes it mandatory for every public institution to develop regulations outlining how the public can access different pieces of information. There are four categories of information: (1) information available and actively disseminated on a regular basis; (2) information that should be made public immediately; (3) information that is available at all times and provided upon request, and (4) restricted or confidential information. Issues arising in implementation include lack of awareness amongst public officials regarding the law’s obligations, poor information management systems amongst government agencies, perceived stigma towards making information requests, and wide exemptions in areas deemed relevant to national security and foreign relations. Concession maps are not public under the FOIA of Indonesia (2013)

Management Links

CITES Agreement Information

CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement among governments whose purpose is to ensure that international trade in wild animal and plant species does not threaten the survival of these species. A total of 182 countries have agreed to the CITES regulations, which is a legally binding agreement. It is up to each CITES Party to draft its own domestic legislation in order to comply with its CITES obligations.

See current list of member countries here

Indonesia ratified the Convention in 1978. Indonesian Government Regulation No 7/1999 concerning Prevision of Plant and Animal species pertains to Indonesia’s obligations under CITES. The law requires government officials to ensure all species that are exported /imported do so legally and authorized by the appropriate agency.

There are no Appendix I plant species listed in Indonesia. However, there are several CITES listed species in Appendix II and III, which are traded commercially in Indonesia. These include:

Aquilaria spp. This tree species produces timber that can supply agarwood, a fragrant wood extremely valuable for incense, perfume and traditional medicine. Overharvesting has led to the listing of Aquilaria species in CITES. Some of these species such as Aquilaria malaccensis are found across Southeast Asia, including Indonesia, of which Indonesia is one of the largest suppliers to the international market. Harvesting of the Aquilaria spp. is regulated by Indonesian forest law, but Indonesia is one of few countries to have set quotas for harvesting and trading the species. There are also recorded plantations of the Aquilaria spp. in Indonesia. The CITES listing for Aquilaria spp. applies to all parts and derivatives, except seeds; seedling or tissue cultures obtained in vitro, in solid or liquid media, transported in sterile containers; and cut flowers of artificially propagated plants.

Gonystylus spp. Commonly known as ramin, this species is highly prized and popular as a decorative timber for furniture and interior accessories, but also for veneer and plywood. Deforestation in natural forests are associated with excessive harvest of ramin through illegal logging for international trade. Concerns regarding the illegal harvesting of ramin in Indonesia, with illegal trade between Indonesia and Malaysia, led to the CITES listing for Gonystylus spp. in Indonesia. It applies to all parts and derivatives of the tree, except seeds; seedling or tissue cultures obtained in vitro, in solid or liquid media, transported in sterile containers; and cut flowers of artificially propagated plants.

Gyrinops spp. Gyrinops spp. is another timber species that can produce agarwood. The CITES listing for Gyrinops spp. applies to all parts and derivatives, except seeds; seedling or tissue cultures obtained in vitro, in solid or liquid media, transported in sterile containers; and cut flowers of artificially propagated plants.

Taxus sumatrana Sometimes known as Chinese yew, this tree is used for furniture and joinery. The CITES listing for Taxus sumatrana applies to logs, sawn wood, veneer sheets, plywood and essential oil (excluding finished products packaged and ready for retail trade).

Please see the following resources for more information specific to the trade in these species and CITES:

Other resources:

Forestry Laws

Indonesia is a decentralized democratic republic, in which district governments and municipalities provide most governmental services. However, the ultimate authority over the management of forests lies at the national level. A patchwork regime of laws and regulations continues to create confusion between operators and authorities, especially as regards land tenure issues and permitting procedures for concessions. Indonesia’s system of regional autonomy has caused a drastic proliferation of law-making bodies; more than 1,000 bodies and individuals currently have law-making powers under this complicated system of overlapping or contradictory authorities over forest resources at the provincial and district-levels of government. This number is likely to further increase as provinces, districts, and other tiers of government are carved out from existing regions.

Despite the conflict and overlap of authority amongst the different layers of government, there are several national policies that form the basis of Indonesia's forest governance regime. Below are listed the most relevant Indonesian environmental, forestry-related and trade laws and policies.

The following sources are recommended for additional information:

  1. WWF-GFTN and TRAFFIC’s Common Framework for Assessing Legality of Forestry Operations, Timber Processing and Trade Annex. This is a very useful reference for those interested in learning more about Indonesia’s regulations, principles, indicators, criteria of forestry operations, timber processing and trade.
  2. CIFOR’s report, Forest and land-use governance in a decentralized Indonesia. This legal and policy review clearly outlines the division of authority between national, provincial and district governments in the implementation of various arenas of forest governance, such as spatial planning, land tenure conflict, indigenous rights over forests, and the permitting process for land conversion.
  3. The European Timber Trade Federation's Timber Trade Portal. The portal provides an overview of the process related to the permitting, harvesting, processing, transport and trade of timber in Indonesia.

The Forestry Law (No 41/1999) 

Indonesia's national Forestry Law came into effect in 2000, and regulates the management of forests in Indonesia. Forestry Law No. 41/1999 replaced the Basic Forestry Law (Law No. 5 of 1967), which had focused mainly on timber management, and not conservation. In contrast, the 1999 Law includes some conservation-oriented policies. It divides forests into three categories, including: Conservation Forests, Protection Forests and Production Forests. It also empowers the Ministry of Forestry to determine and manage Indonesia’s Kawasan Hutan (National Forest Estate). 

Presidential Decree No. 16/2015 on the Ministry of Environment and Forestry 

The 1999 Forestry Law reaffirms the Ministry of Forestry as the lead authority for almost all things related to forests. The text (Article 4, Paragraph (2)) says that the responsibilities of the Government (Minister of Forestry) are to: 

  1. Govern and manage all affairs related to forests, forest areas, and forest products; 
  2. Determine or change the category of certain lands as forest areas or otherwise; and 
  3. Administer and determine legal relations between people and the forests, and legal undertakings related to the forests.

This authority now falls under the newly re-structured Ministry of Environment and Forestry (MoEF). The Ministry of Forestry was officially merged with the Ministry of Environment in October 2015 through Presidential Decree No. 16/2015. The new agency retains most of each ministry’s respective sub-divisions but notably consolidates two Directorates under one umbrella: The Directorate of Social Forestry and Environmental Partnerships, and the Directorate of Law Enforcement for Forestry and Environment. 

Law No. 6 of 2014 on Villages 

This law has enormous implications for the forestry sector by expanding the authority of villages to manage their own assets and natural resources, revenue and administration. It specifically reallocates a specific portion of the State budget to village administrations, providing all of Indonesia’s villages with annual discretionary funding for making local improvements that support poverty alleviation, health, education and infrastructure development. 

Law No. 23 of 2014 on Regional Governance 

This law effectively weakens Indonesia’s system of regional autonomy by withdrawing authority over natural resource management from district and city governments and shifts it to provincial and national-level governments. 

Government Regulation 32/2000

This regulation was passed shortly after Law 41/1999, effectively revoking Regulation 6/1999, which was being exploited by jurisdictions trying to seize more forested area than they had traditionally held. As a result, the Regulation reinforces the Ministry of Forestry as the primary body to administrate the handling of licensing, permitting, and extraction of commercial timber operations in Indonesia. 

Presidential Instruction on Illegal Logging 

The purpose of this Presidential Instruction is to establish the government’s commitment and responsibilities to eradicate illegal logging from within Indonesia’s forests and to stop its distribution throughout the Indonesian territory. It orders the government and several named Ministries to take action against anyone harvesting, collecting or distributing timber without an authorized license; to stop anyone who receives, buys or sells illegal timber; to expose anyone who fails to carry the necessary certificates during transport, etc. 

Law No. 18 of 2013 on the Prevention and Eradication of Forest Degradation 

This law strengthens law enforcement by providing additional legal certainty and defining the penalties for those engaged in forest destruction. It clearly defines which activities are banned, on the part of individuals and organized groups who log in forests, as well as organizations involved in the illegal timber trade and officials engaged in the falsification of permits. A special investigative unit to investigate such forest-related crime is to be formed within 2 years of the law's enactment. 

Ministry of Forestry Decree SK.323/Menhut-II/2011, Suspension of Granting New Licenses and Improvement of Natural Primary Forest and Peatland Governance (“Moratorium”) 

This Regulation suspends the issuance of new harvesting licenses in primary forest and peatland areas. This also forms part of the Government’s implementation plan of Indonesia’s policy to reduce emissions from deforestation and degradation (REDD). The moratorium is an important step towards meeting Indonesia's voluntary commitment to reduce emissions, but there are several unresolved issues concerning the need to review existing concession licenses, improve law enforcement and address land tenure issues. The moratorium excludes concessions leased before May 2011 and does not protect secondary forest. The moratorium has been extended twice by the administration of President Susilo Bambang Yudhoyono in May 2013, and by President Joko Widodo in May 2015. 

Ministry of Forestry Regulation, P. 59/Menhut-II/2009, Proposed 5-year Strategic Plan for Forestry Sector Revitalization 

Chapter 2 of P.59/Menhut-II/2009 proposed a 5 year-strategic plan for the revitalization of the forestry industry sector. The strategic plan aimed at optimizing the use of forest resources, and included the following activities: 

  1. Management of Production Forests to ensure that they do not overlap with other land rights/concessions 
  2. Management of natural forest resources use 
  3. Development of plantation forests (HTI) and Community Plantation Forest (HTR) 
  4. Restructuring of primary forestry industries 

Government Regulation No 3/2008 Forest Management Plan 

This Regulation amends Government Regulation No 6/2007 on forest arrangement and formulation of forest management plan as well as forest exploitation. 

Government Regulation 25/2000 on Government Authority and Provincial Authority under Regional Autonomy 

The 2000 Government Regulations assigned aspects of forest administration responsibilities to the central and provincial Indonesian governments. Regulation 25/2000 gives central governments the lead responsibility and authority with respect to: classifying Forest State lands; formulating national macro-level forestry and estate crop plans; determining criteria and standards for forest-use licensing; setting the appropriate tariffs on forest utilization, royalties, reforestation funds, and investment funds for the costs of forest conservation; establishing quality control for production and processing; and managing conservation areas and parks. The Regulation also establishes the key elements of the provincial governments’ forest administration duties. They include: formulating macro-level plans for forestry and estate crop areas that cross boundaries; developing guidelines for conducting forest inventory and mapping; managing the establishment and enforcement of boundaries between Production Forests and Protection Forests; and managing the allocation of permits for the utilization of wood-based forest products. 

Government Regulation 34/2002 on Forest Administration and the Formulation of Plans for Forest Management, Forest Utilization, and the Use of the Forest Estate 

This was designed to be the implementing regulation for Law 41/1999, Articles 5, 7, and 15. It also provides an elaboration of the new regulatory framework as it pertains to classification of state-controlled forest lands and the harvesting, processing, and marketing of forest products. This regulation also divides Indonesia’s government-controlled forests into three categories: Conservation Forests, Protection Forests, and Production Forests (See Article 2). Under this Regulation, the national government is given far-reaching powers to control timber extraction in Production Forests, and it gives the Minister of Forestry the power to grant all commercial timber utilization permits. The Ministry is also the lead authority for approving any processing mill permits, regulating trade, transport, and distribution of forest products. Export of forest products and timber is managed by the Ministry of Industry and Trade. 

Commercial Timber Utilization Permits 

Created by the Regulation 34/2002, these permits are used to regulate all forest activities, such as harvesting, processing, marketing, planting and managing timber species in designated Production Forest Areas. These may be allocated to individuals, cooperatives, private sector companies or state-owned enterprises. The permit term is 55 years for concession areas where logging will occur, but 100 years if timber is harvested from plantations. 

Relevant Laws and Regulations Related to the Permitting Process for Establishing and Managing Timber Concessions:

Processing/Manufacturing Laws

Ministry of Forestry Regulations: P.16/Menhut-II/2007 (Primary wood industry) & P.43/Menhut-II/2009 (Revision of Regulation of P.16/Menhut-II/2007)

Both Ministry of Forestry Regulations are to ensure that all timber processing companies are subject to stated conditions within the laws and regulations, including the maintenance of records to demonstrate that processing quotas have been respected.

Law No. 32/2009 on Environmental Protection and Management

The issuance of forest management licenses are conditional on the completion of an environmental impact assessment (AMDAL). An EIA (AMDAL) is required for all plantation forests, pulp and paper industries, and other wood working industries. This law outlines all the requirements for an AMDAL.

Minister of Forestry Regulation Concerning Measuring and Testing of Forest Products (No P. 45/2011)

This Regulation dictates the measurement and testing of forest products in order to protect state rights, to protect the quality of forest products from the ecological and economical point of view and to improve forest products competitiveness and sustainable management of forests. Measurement and testing shall be carried out by authority officers to determine the type and volume/weight of all forest products from state or private forests. The Regulation further provides for procedures for the measurement and evaluation of forest products.

Trade Laws

Regulation of the Minister of Trade No 09/M-DAG/PER/2/2007, Provisions on the Export of Products of Forestry Industry

This Regulation provides for rules on the export of products of forestry industries. Only forestry manufacturers recognized as Approved Exporters of Products of Forestry Industry (ETPK) by the Minister of Trade may export products of forestry industries. Procedures for obtaining recognition as ETPK are provided for in the text. Forestry companies recognized as ETPK shall send to the Director General of Foreign Trade annual production plans, realization of production per semester, annual export plans, and export realization per semester. The Regulation further lays down technical criteria for determining forestry-industry products which can be exported.

Timber Legality Verification System (The Sistem Verifikasi Legalitas Kayu - SVLK)

The SVLK is a timber legality verification system. It has various components, and provides the definition of timber legality, control of supply chain, verification system and independent monitoring systems. The SVLK is authorized under the following regulations:

The SVLK implementing regulations have been revised several times to strengthen and close loopholes. Recent regulations have been designed to ease the process for smallholders and small-and-medium enterprises to obtain SVLK certification. MoFR No. 45/2012 included provisions group certification schemes from collectives of small businesses and enterprises whose total investment capital was less than a threshold of IDR 500 million, or ~USD 37,000. P.43/2014 included a new procedure called the Supplier’s Declaration of Conformity (SDoC), which reduces the burden of certification for certain suppliers (household industries, private forests, timber depots and industries that entirely source their timber from private forests or SVLK-certified sources) by allowing them to self-assess their fulfillment of certain requirements for obtaining SVLK.

FLEGT/VPA

One of the main drivers of deforestation in Indonesia is illegal logging, which is why Indonesia and the EU have partnered through the FLEGT-VPA to help prevent illegal logging in Indonesia. Since 2013, Indonesia has required a V-Legal Document to accompany timber products from the point of harvest to their final destination after export as a way to assure the legality of the goods from start to finish. Indonesia has received the go-ahead to begin shipping FLEGT-licensed timber in late 2016 (Antara 2016).

Under the Voluntary Partnership Agreement between the EU Member States and Indonesia, there are several significant institutions in the functioning of the SVLK (Indonesia’s Timber Legality Assurance System). These include the Ministry of Forestry, provincial and district offices, the National Accreditation Body (KAN), the Conformity Assessment Body/CAB (LP and LV), and the Licensing Authorities (LV). As part of their functions under the Freedom of Information Act (UU14/2008), they are obliged to disclose forestry related information to the public.

Trans-Pacific Partnership Agreement (TPP)

Indonesia was not a signatory to the Trans-Pacific Partnership (TPP) free trade agreement, which means that the binding obligations of the TPP’s environmental chapter will not affect Indonesia’s domestic forest governance reforms. Indonesia has signaled that it intends to join the TPP in the future (Jakarta Globe 2016), but it may take years to revise the necessary laws to bring itself into compliance with the TPP.

Asia-Pacific Economic Cooperation (APEC)

Indonesia is a member of APEC, joining in 1989. APEC is the premier Asia-Pacific economic forum, and its goal is to support sustainable economic growth and prosperity in the region.

Regional and Bilateral Free Trade Agreements

Indonesia is party to 8 free trade agreements, 6 of which were negotiated through the ASEAN block, and 2 of which are bilateral agreements with Japan and Pakistan. Indonesia is currently negotiating bilateral agreements with Australia, India, Chile, Hong Kong, and the Republic of Korea. At the top of Indonesia’s trade agreement agenda is negotiating the establishment of the Indonesia – EU Comprehensive Economic Partnership Agreement, which is hoped to improve conditions for foreign investment, and the Regional Comprehensive Economic Partnership (RCEP) multilateral pact with China.

Indonesia is also a party to the following conventions: CBD (ratified), UNFCCC (Non-Annex I Country), Kyoto Protocol (ratified), UNCCD (ratified), ITTA (Producing Member), RAMSAR (Contracting Party), World Heritage (accepted), NLBI (Member State), ASEAN (member country), and ILO 169 (not ratified).

Tax Laws

For information on Indonesian trade laws, the WWF - GFTN and TRAFFIC’s Common Framework for Assessing Legality of Forestry Operations, Timber Processing and Trade Annex is a valuable resource. It sets out all the legal references based on criteria and indicators. Ministry of Forestry Regulation P.18/Menhut-II/2007 provides technical guidelines for collection of Payment of Forest Resources Provision (PSDH) and Rehabilitation Fund (DR) to ensure companies fill in their tax returns in accordance with their effective professional activity. There are a number of regulations regarding the compliance of tax returns from timber processing companies, stating that all value added tax (PPN) and income tax (PPh) must be paid. These include:

UU No 7/1983 concerning Income Tax; this law has been revised four times via UU No 7/1991, UU No 10/1994, UU No 17/2000 and UU No 36/2008. The most recent revision is UU No 36/2008 concerning Fourth Revision of UU No 7/1983.

UU No 8/1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods; this law has been revised three times via UU No 11/1994; UU No 18/2000 and UU No 42/2009. The implementing regulations for this law are governed by Government Regulation N. 1/2012 concerning implementation of UU 8/1983 and revisions.

Law No. 8 of 2010 on Anti-Money Laundering

This law replaced Law No. 15 of 2002, and notably authorized a greater number of institutions to conduct money laundering investigations. The law covers money laundering related to forestry and environmental sector crimes.

Transport Laws

WWF-GFTN & TRAFFIC Indonesia Annex (2012)

All forest products removed from State forests must be accompanied by correct documentation for transportation. According to Article 33 under the Constitution Law (1945), all natural resources that have an impact on people’s prosperity are controlled and utilized by the State Government. Because forest products are therefore classified as State assets, the Government regulates the administration and distribution of these products.

The following Laws and Decrees are some of the applicable timber and wood products transport policies in Indonesia:

Customs Law No 10 (1995) and Customs Law No 17 (2006) concerning revision of Customs Law No 10 (1995)

The Customs Law 10/1995 and its revision (No 17/2006) are relevant in terms of the legal penalties they specify for failure to comply with export procedures. For example, exporting goods without the required legal documents carries a maximum sentence of 10 years imprisonment and fine of up to Rp. 5 billion (~US$400,000).

Minister of Environment and Forestry Regulation No. P.95/Menhut-II/2014 and No. P.43/Menhut-II/2014.

These two regulations outline revised provisions for forest product export controls under Indonesia’s Timber Legality Assurance System.

Government Regulation No 34 (2002) concerning on Forest Governance and Planning Use for Utilization and Management of Forested Areas; Government Regulation No. 6 (2007) on Forest Administration and Compilation of Forest Management Plans, and Forest Utilization. 

Both regulations mandate that transport of forest products originating from the national forest estate be accompanied by required documents that specify the legality of the product in question (Section 119).

Regulation of Directorate General of Forestry Enterprises No. P.3/VI-BIKPHH/2014 on Guidance for Implementation of Administration of Timber from Natural Forests

Describes the documents required for accompanying timber to be transported; different documentation is required depending if the timber is transported within/outside the authorized concession boundaries, or if the timber being transported is roundwood, sawnwood, recycled wood or wood waste. Transport documents are usually valid for one-use only (one commodity, one permit holder, one direction of transport).

Minister of Environment and Forestry Regulation No. P.21/MenLHK-II/2015 on Administration of Forest Products that Originate from Forests with Rights holders

The regulation specifies two types of valid transport documents for forest products harvested from forest areas with recognized rights: (1) The “Transport License” (Nota Angkutan) serves to verify ownership, authorization and legality of the forest products being transported in accordance with the type of forest product being transported. (2) The Letter of Specification of Origin (SKAU) is issued at the local level by the village head, and specifically valid for “owned” forests outside Java, Bali and Lombok (Chapter II/3/3).

Ministry of Forestry Regulation P.53/Menhut-II/2009, Entered and Use of Heavy Equipment for Forest Utilization License

All lorries and other vehicles transporting forest products must have a valid registration license and number in order to operate in Indonesia.

Ministry of Industry and Trade Decree 68/MPP/Kep/2/2003, Inter-Island Timber Trade

All companies transporting wood between islands must have a valid license. Several other regulations and amended regulations relate to the need for clear evidence to show documents and corresponding markings of timber products for transport shall be demonstrated by companies and carriers in accordance with the laws and regulations.

Documents / Legal Texts

Forest Products

Products Overview

Indonesia is the world’s largest exporter of tropical timber, and its aggregated forest products exports (timber, wood manufacturing and pulp and paper) combined contributed US$21 billion to the economy (ITS Global 2011), or approximately 3.5% of Indonesia’s GDP.

According to data from Indonesia’s Ministry of Trade, the export value of forest products have grown to reach over US$11 billion in 2015.* Timber exports alone were valued at US$5.1 billion in 2014, compounded by another US$5 billion in pulp and paper exports (EU-FLEGT 2015).

However, Indonesia continues to lose millions of dollars a year in lost revenues because of the illegal timber trade. A report by Indonesia’s Corruption Eradication Commission found that Indonesia lost US$9 billion in state revenues from unreported timber sales between 2003-2014. Despite an export ban, roundwood is still regularly smuggled out of Indonesia and into the international market via Malaysia and Singapore. Therefore these export values do not adequately reflect the full quantity of timber and wood products leaving Indonesia.

*From the Table “Growth of Non-Oil and Gas Export (Sectoral) Period: 2011-2016, the categories for wood, paper, wood pulp and furniture collectively add up to US$11.14 billion, a modest increase from US$10.92 billion in 2011.

Production Status

Production in Indonesia’s natural forest concessions has been steadily declining since the early 1990s, while production from industrial forest concessions has steadily increased during the same time frame, largely due to the expansion of the pulp and paper industry. The paper and pulp industry in Indonesia is characterized by large conglomerates, while the furniture industry is represented mostly by small and medium-sized enterprises (SMEs).

The actual volume of timber production in Indonesia is unknown, due to loopholes in regulations for reporting timber harvest. Official statistics often exclude timber processed by small sawmills, or timber logged through land-clearing in concessions. Official MoEF statistics report that commercial timber production from natural forests in Indonesia was only 143.7 million cubic meters between 2003-2014, while the Corruption Eradication Commission’s 2015 estimated that the actual figure was likely between 630-773 million cubic meters (KPK 2015).

Key exports include processed goods, namely: plywood, pulp and paper, moldings and joinery, furniture, sawn timber and veneer. Indonesia’s main export destinations include China, Japan, Korea, the EU and USA. Indonesia is ASEAN’s largest pulp and paper producer, expecting to see a 6-7% annual industry growth rate in the coming years (Jakarta Post 2014). Furniture exports have become a growing source of revenue for Indonesia as well; the furniture industry exported US$1.8 billion in 2013, which is targeted to increase to US$5 billion annually by 2019, with most exports destined for the United States, EU, Japan, China, Malaysia and Australia (GBG Indonesia 2015).

Sustainably managed native forests and plantation forests have become an increasingly important source of timber with the depletion of natural permanent forest stocks and changing forest policy. Despite significant efforts, the levels of illegal logging in the country continue to cause the distortion of the timber industry market. Indonesia was one of the first countries to start negotiating a FLEGT-VPA with the EU, a major initiative which aims to ensure that timber exported to the EU must be verified as legally harvested. The value of timber products exported to the EU was valued at US$1 billion in 2015 (Jakarta Post 2016). Indonesia supplies 33% of the EU’s demand for tropical timber, by value (Siniwi 2016).

According to 2014 roundwood production data from Indonesia’s Central Statistics Agency, commonly used species in the timber industry include: Shorea spp. (meranti), Dipterocarpus spp. (keruing), Dryobalanops spp. (kapur), Shorea laevifolia (bangkirai). Smallholder-produced timber favors species such as Switenia macrophilia (mahogany), Tectona grandis (teak), Paraserianthes falcataria (sengon), and Anthocephalus cadamba (jabon). Plantation Acacia spp. is the dominant timber source of the pulp and paper industry. Legally protected species that still remain popular for furniture construction include merbau (Intsia bijuga), IUCN-Vulnerable, and Ramin (Gonystylus bancanus), CITES-Appendix II.

Contacts

Contacts Overview

Indonesia has a number of industry associations, civil society groups (both international and local), and government ministries and departments dealing with forestry, trade, and illegal logging. Below is a partial list of civil society organizations and industry associations providing forestry services including auditing and training.

Industry Associations

Indonesian Sawmill and Woodworking Association (ISWA)

An association with a large membership largely comprised of small and medium enterprises. Its overall goal is to promote a more efficient and integrated timber industry within Indonesia.

Indonesian Panel Wood Producers Association (Asosiasi Panel Kayu Indonesia - APKINDO)

This industry association of wood panel producers has over 100 registered members, and actively supports the SVLK. APKINDO members reportedly have a 100% rate of certification under the SVLK.

Indonesian Pulp & Paper Association (APKI)

An industry association that aims to facilitate the sustainable development of the pulp and paper industry. Its program of work includes developing a roadmap for industry sustainability, as well as building the capacity of its members and communicating the results of research and sustainability efforts to the global community.

Indonesian Furniture Industry and Handcraft Association (ASMINDO)

An association comprised of all aspects of furniture and handicraft sector, ranging from raw material, semi-finished, and finished products. Its goals are to enhance and develop the skills, activities and interests of employers in industrial Indonesian furniture and handicraft enterprises. It hopes to create and develop a business climate conducive to the Indonesian furniture and handicraft industry.

National Accreditation Committee (KAN)

An independent government body outside of MoF, which includes stakeholders representing government, industry/association and professional, who are managed in such way to ensure that no single parties predominate decision of Council.

Asosiasi Pengusaha Hutan Indonesia (APHI)

A trade association for forest concessionaires in Indonesia. APHI raises awareness about government regulations amongst its members, and has an overall goal of promoting research and development to support forest management and policymaking.

Civil Society Organizations

The Rainforest Alliance

The Rainforest Alliance is an international NGO that works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior. The Rainforest Alliance offers forest certification and legality verification services for industry actors; it is not one of the registered SVLK auditors, but does conduct legality verification audits in Indonesia through its Verification of Legal Compliance (VLC) Standard for Processing and Trade.

Indonesia Independent Forestry Monitoring Network - Jaringan Pemantau Independen Kehutanan (JPIK)

JPIK is a network of institutions that act as independent observers in the field of forestry, especially in monitoring the implementation of the SVLK. JPIK’s work exposing illegalities continues to be prominently featured in Indonesian media, and their investigations provide the basis for companies to be audited, have permits revoked, or be placed under greater public scrutiny.

Forest Watch Indonesia (FWI)

An independent forest monitoring network comprised of individuals and organizations that aim to promote transparency of information regarding the forestry sector in Indonesia. FWI publishes its own annual “Atlas of Indonesian Forests” report based on data collected through its network, and makes other forestry data (concession maps, monitoring reports) publicly available with the goal of promoting sustainable forest management through transparency.

Telapak Indonesia

Telapak is an association of NGO activists, business practitioners, academics, media affiliates and leaders of indigenous peoples, fishers, and farmers of Indonesia towards sustainability, sovereignty, and integrity. Telapak has been monitoring and investigating illegal logging in Indonesia since 1999, but also works to promote community forest management and community fisheries as a strategy to address illegal logging through providing alternative livelihoods.

Indonesian Center for Environmental Law

ICEL seeks to promote and influence government policies towards environmental protection. ICEL has been instrumental in the drafting and promoting of legislation for recognizing indigenous rights, encouraging policy reform, and building the capacity of government officials, and civil society.

GFTN-Indonesia

GFTN-Indonesia is the Indonesian chapter of the Global Forest and Trade Network (GFTN), WWF’s initiative to eliminate illegal logging and improve the management of valuable and threatened forests. GFTN is active in nearly 30 timber producer and consumer nations in Europe, Africa, the Americas and Asia. GFTN-Indonesia aims to support forest certification and responsible wood sourcing by facilitating trade links between companies committed to achieving and supporting responsible forestry.

Center for Reporting and Analysis of Financial Transactions (PPATK)

Also known as the Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK), they report and analyze monetary transactions and use financial analysis to identify those who facilitate forest-related crime.

Global Timber Tracking Network (GTTN)

This network of scientists, policy makers and civil society was formed in 2012 to promote the use of DNA tracking in combating illegal logging. One of GTTN’s overarching goals is to create a global reference database for timber species targeted in the illegal timber trade, based upon collected samples of genetic and stable isotope markers.

Government Ministries

Ministry of Environment and Forestry (MoEF):

The Ministry of Forestry and Environment (MoEF) is responsible for managing and monitoring Indonesia’s forests, and making sure sustainable ecosystems are in place and protected. The Ministry also has jurisdiction over national parks and management of national reserves. It develops policy and legislation on forestry and wildlife resources or Indonesia and contributes to national awareness through conservation, forestry, wildlife and environmental education and outreach. The MoEF was created through the merging of the Ministry of Forestry with the Ministry of Environment in October 2014, and retains most of each ministry’s respective sub-divisions but notably consolidates two Directorates with cross-cutting implications: The Directorate of Social Forestry and Environmental Partnerships, and the Directorate of Law Enforcement for Forestry and Environment.

Ministry of Agrarian and Spatial Planning (ATR):

This Ministry was newly created by the Jokowi Administration, to support its economic development plans and the sweeping land tenure reform needed over the status of “forest” and “non-forest” lands. It was created in 2014 to expand upon the role of the National Land Agency (BPN), but has been given regulatory authority over land-use policies and resolving land conflicts. This new ministry has jurisdiction over the administration of “non-forest” land, while the MoEF continues to administer “forest” land.

National Geospatial Agency (Badan Informasi Geospasial – BIG):

This agency is charged with oversight of the “One Map” initiative, which aims to unify standards for mapping across government agencies and also resolve land tenure conflicts. The map and has the potential to address illegal logging through resolving issues with overlapping concession permits and land-use claims over forest areas.

Center for Biotechnology and Forest Improvement Research (BBPBPTH)

Located within the Ministry of Forestry and Environment, BBPBPTH was formally established in 2006 for the purpose of conducting research in the field of biotechnology and breeding improved tree species for plantations. Located in Yogyakarta, BBPBPTH is charged with a comprehensive research agenda, which also includes developing improved seeds and hybrids for economic timber species, developing methods for detecting pathogens and pests, conducting research on tree species adaptability to extreme climate change, as well as developing methods for DNA tracking and barcoding of certain tree species.

Ministry of Trade (Kementerian Perdagangan – MoT):

The Ministry of Trade was closely involved in the development of the SVLK’s Timber Legality Verification Information System, which is reportedly linked with its own INATRADE online portal. The MoT originally amended its own Regulation No.20/2008 to comply with the SVLK in 2008, which was temporarily undermined through the issuance of Regulation No. 89/2015 that weakened export restrictions on select forest products, and then revised again to eliminate loopholes that allowed timber product exports without V-legal documents.

Corruption Eradication Commission (KPK)

Active in investigating and prosecuting forest crimes and other environmentally-related crimes. Has signed MoU with MoF (Feb 2014) on reducing corruption in issuing of forest permits, co-signee of MoU on expediting forest establishment in March 2013 between 12 ministries and agencies.

Tools & Resources

Sources