Post-2024 EU market access for Technical Wood

In Indonesia, SIPPO collaborates with the Directorate General for National Export Development (DGNED) within the Ministry of Trade to discuss EU market access post 2024, particularly for Technical Wood. The European Union Deforestation Regulation (EUDR), which has been in force since June 2023, addresses seven commodities, with wood and its derivative products being one of the regulated items.

Market access for Technical Wood

This market access initiative seeks to inform stakeholders about the implications of the EU Green Deal, introduced in 2019 and the EUDR, emphasizing the changing landscape of market access for wood and its derivatives in the post-2024 scenario.

The EU Green Deal was introduced in 2019 and encompasses a series of policy initiatives aimed at achieving climate neutrality in Europe by 2050. Its overarching goals include promoting sustainable economic growth and enhancing health and quality of life by reducing environmental pollution.

In alignment with these objectives, the European Union Deforestation Regulation (EUDR) was launched in June 2023. The EUDR specifically addresses seven commodities, with wood and its derivative products being one of the regulated items.

On March 4, 2024, Mr. Didik Sumedi, Director General of National Export Development, and Mrs. Dewi Rokhayati, Director of National Export Development for Manufactured Products of the Directorate (((General for National Export Development (DGNED) jointly inaugurated a workshop focused on discussing market access to the European Union post-2024, particularly for technical wood.

The workshop featured a SIPPO expert who provided insights into the correlation between the European Union Deforestation Regulation (EUDR) and the Forest Law Enforcement, Governance, and Trade (FLEGT) initiative. Additionally, they discussed the relevance of the SVLK (Sistem Verifikasi Legalitas Kayu or Timber Legality Verification System) in this context.

Representing the Indonesian competent authority for SVLK, the Ministry of Forestry and Environment, Mr. Yoga Prayoga delivered a presentation on SVLK's response to the requirements outlined in the EUDR. During his presentation, Mr. Yoga Prayoga emphasized specific aspects of the EUDR, particularly mentioning Article 3.

Relevant commodities and relevant product shall not be placed or made available on the market or exported, unless all the following condition are fulfilled:

  • They are deforestation-free;
  • They have been produced in accordance with the relevant legislation of the country of production, and
  • They are covered by a due diligence statement products

Compliance with EUDR stipulations
In addressing the requirements laid out by the European Union Deforestation Regulation (EUDR) and in a bid to assist Indonesian wood producers, Mr. Yoga Prayoga emphasized that Indonesia's Timber Legality Verification System (SVLK) is in compliance with the EUDR stipulations. Furthermore, the Indonesian competent authority is actively working on enhancing the full traceability of SVLK. Additionally, collaborative efforts between Indonesia and the European Union are underway to improve the EU Forest Observatory (EUFO) global map forest cover accuracy, which currently still exhibits a margin of error of 20%.

The three-hour workshop included participants from the DGNED – Export Development for Manufacture Products (PEPM) staff, along with representatives from various associated groups such as the Indonesia Light Wood Association (ILWA), the Indonesian Furniture and Craft Association (HIMKI), the Indonesian Sawmill and Woodworking Association (ISWA), and the Indonesia Pulp and Paper Association (IPPA). Additional companies joined the session remotely. The discussion proved to be highly engaging, prompting numerous comments, suggestions, and reflections from the audience. The underlines that the topics deserves significant attention and that it must be addressed in a comprehensive manner.

Communicating legislation is crucial
This underscores the significance of disseminating information about new legislation, particularly among stakeholders in Indonesia, including the private sector. Such awareness is crucial to prevent misunderstandings about legal requirements, enabling private sector stakeholders to adapt and align their export strategies accordingly. This adaptability is vital as it can potentially influence the overall turnover of Indonesia's exports.

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