July 2014: The Center for International Forestry Research (CIFOR) has released a brief examining ”Timber Legality Verification and Small-scale Forestry Enterprises in Indonesia,’ which presents policy options for assessing and supporting the legality of forest products from small-scale enterprises to markets in the European Union. There are an estimated 700,000 small-scale forest enterprises in Indonesia.

The study considers application of the Indonesian Timber Legality Verification System (SVLK) that, among large-scale producers, is achieving significant success. However, the SVLK, which is a key component on the Voluntary Partnership Agreement (VPA) with the EU, has not been broadly applied among small producers and a high level of illegal production takes place, according to the report.

Some of the reasons for this lack of application among small-scale enterprises noted in the brief include the sheer number of small-scale enterprises, high certification costs, and limited verification and certification capacity. The report also notes that there is a disconnect between the production requirements of the SVLK and the livelihood strategies typically employed by small-scale forest enterprises, particularly the decision to only fell trees when there is an immediate need for cash income.

In order to improve the legality of forest products supplied by small-scale enterprises and ensure access to European markets, the report suggests that such enterprises be provided with legal assistance, that certification processes be simplified and that the number and capacity of verification bodies be increased. The report also calls for the simplification of permit and compliance procedures. CIFOR is part of the CGIAR consortium. [CIFOR Press Release] [Publication: Timber Legality Verification and Small-scale Forestry Enterprises in Indonesia – Lessons learned and policy options]