Businessmen Urge Simplification On Timber Certification

Jumat, 14 Maret 2014 | 09:46

The furniture businessmen urged the simplification in obtaining timber legality assurance system (SVLK) certification to small and medium industries (IKM) both in the administration and cost. Chairman of Indonesian Furniture and Handicraft Association (AMKRI) Sunoto said the SVLK implementation to IKM has been postponed up to January 1, 2015 by the government in view of the IKM unpreparedness.

In his opinion, the postponement period should be used as a momentum for the government to accelerate the SVLK certification fulfillment by IKM.

“There is still another 9 months in ahead. This period should be taken as the opportunity to encourage IKM for obtaining SVLK. Yet, I am not ascertained that all IKM will be ready in next year if they are now burdened with the requirements on cost and complicated administration,” said Sunoto to Bisnis Indonesia, Thursday (3/13).

According to him, about 70% from total 5,000 furniture exporters in existence are dominated by IKM-scale business players. There is only a little part of the percentage which has obtained SVLK certificates.

Cost matter becomes the main problem often complained by the IKM that make them reluctant to fulfill the certification.

For this, the government, said Sunoto, should inject aid to the furniture IKM in order to accelerate the SVLK certification process.

 “We have only a little amount which has obtained SVLK. If the government believes that the SVLK will be effective to boost the state foreign exchange, then they could just pay the SVLK cost for the IKM. There should not be a burden to the IKM considering that the cost is not comparable to the revenue as received by the state,” he said.

According to him, the obstacle which is encountered by Indonesia is the furniture industry composition which is dominated by IKM. The furniture IKM businessmen are complaining for the complicated administration which covers environmental issues.

In respond to the request, the government admitted that for the small-scale IKM, the certification cost is something which often hampers.

“Over the period, The Forestry Ministry has actually paid the certification by using the Ministry’s State Budget. Therefore, we extend the period up to one year,” said Trade Deputy Minister Bayu Krisnamurthi at the opening of Trade Ministry Work Meeting, Wednesday (3/12).

Meanwhile, The Industry Minister MS. Hidayat said the government is ready to support the budget allocation for furniture IKM in order to fulfill SVLK requirement and promote Indonesia’s product competitiveness.

 “We have actually paid the cost and extended it for another one year. Yet the association has urged to extend over one year. We will consider it again,” he said at the opening of 2014 IFEX in early week.

Incentive of 8%

 In relation with the government’s issue to provide incentive of 8% to the exporters with SVLK certificates, as exposed by Trade Minister Muhammad Lutfi recently, Director General of National Export Development (PEN) NusNuzulia Ishak has clarified that the exporters will be rewarded by 8% discount from their product sales value.

“The exporters will get incentives especially for the exporters with the destination countries of United States, not European Union,” she said.

Meanwhile, Bayu Krisnamurthi said the SVLK license holders will also obtain another benefit which includes faster delivery time.

 “Through SVLK, the importation process to Europe could be accelerated into 7 days at minimum, even faster.” (t11)

by Wike D. Herlinda, Renat Sofie Andriani