Indonesian Timber Exporters & Timber Legality Assurance Certificate

A Guide to Timber Legality Assurance System Certificate in Indonesia

  • InCorp Editorial Team
  • 23 October 2020
  • 3 minute reading time

The Minister of Trade has issued the latest regulation on the export of forestry industrial products number 45/2020, enacted by the Ministry of Law and Human Rights on May 11, 2020, and immediately takes effect after its enactment. The issuance of Permendag number 45/2020 replaces the previous regulation Permendag number 15/2020.

The revocation of Permendag 15/2020 was carried out to ensure the export business in forestry industrial products and to implement the Voluntary Partnership Agreement between the Republic of Indonesia and the European Union on Forest Law Enforcement, Governance and Trade in Wood Products (FLEGT VPA) to the European Union, especially in connection with the use of Document V- Legal as a complementary customs document.

With the revoking of Permendag 15/2020, it means that Permendag 84/2016, which had been amended by Permendag 38/2017 on Export Provisions of Forestry Industrial Products, will remain in effect. Based on this provision, products such as pulp, plywood, woodworking, and furniture are required to include a V Legal document issued under SVLK in the export process.

Timber Legality Assurance System (SVLK) is needed by Indonesian timber exporters to ensure that all timber products that are distributed and traded have a clear and convincing legality status. In addition, with SVLK, the customers abroad do not suspect the legality of timber derived from Indonesia.

Forest management does not need to worry about questionable timber legality either. The existence of an SVLK certification will help the wood-based industrial sector to grow, because the legality of the source of wood raw materials will convince customers or buyers abroad.

SVLK Certification Process for Indonesian Timber Exporters

1. Fulfillment of Company Legality for Non Producer Exporters
• Deed of incorporation
• Business Trade License
• Company Registration Certificate
• Business Identification Number
• Tax Identification Number
• Having an agreement with TDI / IRT / craftsmen, non exporters who have SLK or DKP

2. Production and Fulfillment of Chain of Custody Documents (P.14 / PHPL / SET / 4/2016)
• Chain of custody SOPs
• Results of technical reports by surveyors
• Other documents (CITES)

3. Implementation of procedures
• Records and notes of filling operational forms for 3 months

4. SVLK audit
• Audit findings & CAR

5. Issuance of SVLK Certificates
• SVLK certificate

The Timber Legality Assurance System (SVLK) itself is a multi-stakeholder tracking system designed to ensure the legality of the source of timber distributed and traded in Indonesia. The SVLK was developed to encourage the implementation of applicable government regulations related to legal trade and circulation of forest products in Indonesia.

According to the time frame and document fulfillment requirements for the SVLK, the fastest SVLK audit is able to be conducted in 3 months after the Deed of Incorporation or Business Trade License or Business Identification Number is issued, and the certificate is issued within one month (maximum) after the closing audit meeting. During the first three months, the company must have records and reports on the application of existing procedures in the company.

How Cekindo can Assist

Applying for the SVLK may be a challenge if you are not familiar with the regulations and requirements. That is why Cekindo is here. Our team of certification experts can provide the support and assistance you need to secure the SVLK hassle-free.

Fill in the form below now for further information and discussion.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.