Risk Tool

Contacts Overview

Listed below are industry associations, civil society groups, and government ministries/departments involved with forestry, trade, and illegal logging.

Industry Associations

• Indonesian Sawmill and Woodworking Association (ISWA)
• Indonesian Panel Wood Producers Association (Asosiasi Panel Kayu Indonesia - APKINDO)
• Indonesian Pulp & Paper Association (APKI)
• Indonesian Furniture Industry and Handcraft Association (ASMINDO)
• National Accreditation Committee (KAN)
   
• Asosiasi Pengusaha Hutan Indonesia (APHI)

Civil Society Organizations

• The Rainforest Alliance .
• Forest Watch Indonesia (FWI)
• Kaoem Telapak Indonesia
• Indonesian Center for Environmental Law

Digital Sources

Laws Overview

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 about land tenure issues and permitting procedures for concessions.

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.

Forestry Laws

• The Forestry Law (No 41/1999): Regulates the management of forests in Indonesia and includes some conservation-oriented policies. It divides forests into three categories: Conservation Forests, Protection Forests and Production Forests. It also empowers the Ministry of Forestry to determine and manage Indonesia’s National Forest Estate (Kawasan Hutan). 
• Presidential Decree No. 16/2015 on the Ministry of Environment and Forestry: 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: 
  • Govern and manage all affairs related to forests, forest areas, and forest products; 
  • Determine or change the category of certain lands as forest areas or otherwise; and 
  • Administer and determine legal relations between people and the forests, and legal undertakings related to the forests.
• Law No. 6 of 2014 on Villages: Expands 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: 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.  
• Law No. 18 of 2013 on the Prevention and Eradication of Forest Degradation: Strengthens law enforcement by providing additional legal certainty and defining 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. 
• Presidential Instruction No.5 of 2019, New License Moratorium and Improvements to Management of Primary/Natural Forests and Peatlands: Extends the moratorium from 2011. Suspends the issuance of new harvesting licenses in primary forest and peatland areas. Forms part of the Government’s implementation plan for Indonesia’s policy to reduce emissions from deforestation and degradation (REDD+). It excludes licenses that were obtained before May 2011 and licenses used for geothermal/oil energy mining. It also does not protect secondary forests.
• Government Regulation No. 23/2021 on Forest Maintenance: 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. 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 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. 
• MoEF Regulation No.8 of 2021 on The Governance and the Making of Forest Management Plan, as well as Forest Use on Protected Forest and Production Forest: Regulates the procedures to record an inventory of tree standing stock. Ensures that natural forest concession holders prepare long term business plans (RKU) and an annual working plan (RKT). The inventory, RKU, and RKT are mandatory and must be submitted before harvesting can be initiated.

Processing/Manufacturing Laws

• Law No. 32/2009 on Environmental Protection and Management: The issuance of forest management licenses conditional on the completion of an environmental impact assessment (AMDAL) which is required for all plantation forests, pulp and paper industries, and other wood working industries. This law outlines all the requirements for an AMDAL.
• MoEF Regulation No.8 of 2021 on The Governance and the Making of Forest Management Plan, as well as Forest Use on Protected Forest and Production Forest : Aims 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. Stipulates the obligation of primary industries to report log inputs and outputs using the MoEF preferred format. The online database system, RPBBI Database of Timber Industry, records the origins of raw timber as input materials for the industry. Dictates the measurement and testing of forest products to protect state rights, the quality of forest products from the ecological and economical point of view and improve forest products competitiveness and sustainable management of forests. Measurement and testing shall be carried out by officers to determine the type, volume, and weight of all forest products from state or private forests. Provides for procedures for the measurement and evaluation of forest products.

Trade Laws

• Regulation of the Minister of Trade No 93 of 2020 on the Amendment of Ministry of Trade Regulation No. 74 of 2020 on the Provisions on the Export of Products of Forestry Industry : Provides rules on the export of products of forestry industries. Only producers who have obtained V-Legal (FLEGT license) who can export timber products. Procedures for obtaining export clearance are provided for in the text. 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:
  • MoEF Regulation No.8 of 2021 on The Governance and the Making of Forest Management Plan, as well as Forest Use on Protected Forest and Production Forest
  • Director General of Sustainable Forest Management Decree SK. 62/PHPL/SET.5/KUM.1/12/2020  

The SVLK implementing regulations have been revised several times to strengthen the process and close loophole. Recent regulations have been designed to ease the process for smallholders and small-and-medium enterprises to obtain SLVK certification. It included provisions on group certification schemes from collectives of the holder of HTR (community plantation), HKm (community forest), HD (village forest, primary forests with lower production capacity, small scale industries, and private forest owners. It also allowed for non-certification procedures to verify timber legality called Supplier’s Declaration of Conformity (SDoC), which reduces the burden of certification for certain suppliers by allowing them to self-assess their fulfillment of certain requirements for obtaining SVLK. All updated regulation pertaining to timber legality could be found on MoEF legality information system, SILK.

• FLEGT/VPA : 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 destination after export to assure the legality of the goods. Indonesia has received the go-ahead to begin shipping FLEGT-licensed timber in late 2016 (Antara 2016).
• For more information on regional and bilateral free trade agreements that Indonesia is a part of, click here: https://aric.adb.org/fta-country

Transport Laws

• Customs Law No 10 (1995) and Customs Law No 17 (2006) concerning revision of Customs Law No 10 (1995) : Relevant in terms of the legal penalties, they regulate 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 Rupiah 5 billion
• Government Regulation No. 23/2021 on Forest Maintenance : 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).
• MoEF Regulation No.8 of 2021 on The Governance and the Making of Forest Management Plan, as well as Forest Use on Protected Forest and Production Forest : Describes the traceability requirement of timber harvested from natural and plantation forests. The transport of natural forest logs must be accompanied with a document called Surat Keterangan Sahnya Hasil Hutan (SKSHH). Transport documents are usually valid for one-use only. Specifies the valid transport documents for forest products harvested from forest areas with recognized rights. 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. This document also applies as SDoC or proof of legality for timber sourced from private forests.
• Ministry of Trade Regulation No. 92 of 2020 ,Inter-Island Trade : Mandates that all companies transporting wood between islands must have manifest domestic documents, providing information on identities of the sender/receiver, types and number of goods, origin and destination, transport vehicles, and description of goods/HS codes.

Tax Laws

• Law No. 8 of 2010 on Anti-Money Laundering: Authorized a greater number of institutions to conduct money laundering investigations and covers money laundering related to forestry and environmental sector crimes.
• Government Regulation No.12/2014 on Types and Tariff of State’s Non-Tax revenues in the Ministry of Forestry: Imposes different changes on each timber species based on the timber’s commercial class. It differentiates the levies for natural forests in three harvesting areas:
  • Sumatra and Sulawesi
  • Kalimantan and Maluku
  • Papua and Nusa Tenggara

CITES Agreement Information

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is an international agreement among governments whose purpose is to ensure that the international trade of wild animals and plant species does not threaten the survival of these species. It is up to each country to draft their own domestic legislation to comply with its CITES obligations. Indonesia signed onto the Convention in 1978.    

The species under the protection of CITES are listed in three Appendices based on how threatened they are by international trade. The species listed in Appendix I are the most endangered and international trade in these species are prohibited unless the purpose of import is noncommercial. The species listed in Appendix II are tightly controlled in international trade and may be authorized with an export permit or re-export certificate. Appendix III lists species at the request of a Party that needs other countries’ cooperation to regulate the trade in the species. International trade in Appendix III is allowed with appropriate permits or certificates.  

If you don’t know if the species you are interested in sourcing from this country is CITES listed, please check this link. If it is, please use this database to identify the National CITES Authority. Normally, the CITES Authority is one of the government agencies that oversees forest resources.  

• For more information on CITES please see the following resources:  
  • Convention on International Trade in Endangered Species of Wild Fauna and Flora 
  • CITES Appendices
  • CITES Species
  • National CITES Authorities