Furniture Exports Sets Record High After Timber Reform
Indonesia's local timber furniture producers have exported $2.7 billion of products following the country's adoption of legal timber certification, spurred by higher demand from European customers, a leading industry figure said.
According to LismanSumardjan of the chairman Indonesian Furniture and Crafts Producers (Asmindo), Indonesia is on course to reach $3 billion in furniture exports this year as demand usually spikes ahead of the Christmas and New Year holiday. The figure is set to eclipse last year's total $1.8 billion in exports.
"[Now,] our furniture exports have [a SistemVerifikasiLegalitasKayu (SVLK) Timber Legality Certificate]. This gives Indonesia an advantage over furniture products from other countries," Lisman said.
In a bid to combat illegal logging, Indonesia has established the SVLK Timber Legality Certificate, a mandatory verification system providing assurance that timber and timber products produced and processed in Indonesia come from legal sources and are in full compliance with relevant Indonesian laws and regulations, as verified by accredited independent auditing.
In another move to boost the timber trade, Indonesia adopted the European Union's Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement in 2013, assuring the legality of the timber products exported to the EU from Indonesia from the point of harvesting to transporting, trading and processing.
This system results in a more efficient timber export process, allowing European importers to omit due diligence on timber products from Indonesia, Lisman said.
Indonesia's other primary furniture markets include the United States, Japan, Australia and South Korea.