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The Practice of Undername SVLK Has a Bad Impact on Timber Marketing

By : Teguh Iman Affand

Executive Director of the Indonesian Furniture and Handicraft Industry Association (ASMINDO) for the Central Java region, Yana Maya, said that the practice of undername SVLK (Timber Legality Assurance System)  hurt marketing in the long term.

“Because when the timber is sold to a buyer, it’s not in our name, but a name from another company,” he said when interviewed by Kaoem Telapak on June 29, 2020. As an entrepreneur, Yana said, he wanted continuous marketing improvements. However, the practice of undername SVLK makes the achievement of commodity sales invisible.

Yana Maya, Executive Director of ASMINDO for Central Java

Not to mention the issue of branding the trademark. Many buyers from abroad often question the products he sells. “When exhibiting outside, ‘why is this your name? Usually this?’, ‘How come the name is different?’ That (the practice of borrowing flags – ed) has an impact on the market, “said Yana.

Although it has a negative impact in the long term, Yana does not want the practice abolished. According to her, this practice helps small businesses that want to export. “Undername SVLK is a temporary solution, although fortunately there is none.”

Yana prefers the government to limit the practice of undername SVLK, and to carry out SVLK supervision regularly. “I calculated it myself. Every month I use certification from company A. Others also use company A, but the permits are like this, but nothing happens. There are no suspensions or anything,” he said.

Kaoem Telapak defines the practice of undername SVLK as the practice of timber business actors who export timber commodities using or on behalf of other companies that already have SVLK certificates.

Various factors encourage business actors to choose loans. According to Yana, the ego to run an international business scale is the main reason why business people choose the undername SVLK. “I have got a buyer. I can produce, but why am I having problems. I have no choice. I need to go with the undername SVLK,” Yana explained.

Kaoem Telapak organized FGD that invited all stakeholder of timber industry
tried to finding a solution for undername SVLK

The investigation from Kaoem Telapak found that the widespread practice of undername SVLK  was caused by many factors. Unclear origins of wood, intense business competition, the complexity of administration, and officials without integrity are some of the factors that keep this practice going.

Aulia Baroroh, Campaigner for Kaoem Telapak, explained that the practice of undername SVLK could be an entry point for selling timber from illegal logging. This practice also disturbs the dignity of SVLK. “As a result, it will seriously disrupt the credibility of SVLK, which has become a timber management system that we are proud of,” said Aulia.

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