LEGALITY VERIFICATION BODY AND LICENCING AUTHORITY PT SUCOFINDO (PERSERO)

LEGALITY VERIFICATION BODY AND LICENCING AUTHORITY

PT SUCOFINDO (PERSERO)

PROCESS OF LEGALITY VERIFICATION

PT. Superintending Company of Indonesia (PT.

SUCOFINDO) has been established since 1956,

provides services in inspection, testing,

certification and training.

PT. SUCOFINDO is the first and the biggest

National Inspection Company in Indonesia

SUCOFINDO IN BRIEF

LHOKSEUMAWEMEDANDUMAI

PADANGPAKANBARU

BENGKULUJAMBI

PALEMBANGBANDARLAMPUNG

BANDA ACEH

SAMPITKETAPANG

PONTIANAK

CILEGONJAKARTA

BANDUNG

CILACAPCIREBON

CIKAMPEK

SEMARANGSURABAYA

BANJARMASINTARAKANSAMARINDABALIKPAPAN MANADO

UJUNGPANDANGTERNATEAMBONSORONGJAYAPURA

KUPANGCAKRANEGARADENPASAR

TIMIKA

BATAM

BONTANG

BEKASITJ. PRIOK

PALU

HEAD OFFICE AND BRANCHES 33 Branches 32 Service Points Laboratory service at PT SUCOFINDO branches and service points

Accreditation, Recognition and Partnership With National and International Institutions

ACCREDITATION:

NATA Australia, Accreditation of Testing Laboratories

FOSFA England, Inspections and Palm Oil Testing Analysis

IECEE (International Electrotechnical Commission for Electrical & Electronic) – Accreditation as National Certification Body and Certifiction Testing Laboratory)

RSPO, Rountable on Sustainable Palm Oil

Indonesia Ecolabel Institute, Sustainable Forest Management and Chain of Custody

National Acreditation Committee (KAN), Quality, Environment, Forestry, and Food Cert.

RECOGNITION:

RWTUV Germany, Testing Laboratories and Quality System Certification Institution

NKKK Japan, Surveyor and Quality System Certification Institution

IFIA England, Inspection and Commodity Supervising

GAFTA England, Inspection of grain and fodder

SGS Geneva Swiss, Surveyor and Quality System Certification Institution

PARTNERSHIP:

SISIR Singapore, Product Certification, Quality System Certification Institution and Testing LAboratory

SIRIM Malaysia, Product Certification, Quality System Certification Institution and Testing Laboratory

Lloyds England, Insurance Claim Settlement

CCIC RRC, Surveyor

INSPECTA Czech Surveyor and Consultant

TIMBER LEGALITY ASSURANCEPT SUCOFINDO (PERSERO)

PT SUCOFINDO (Persero) has issued Timber Legality Certificates for 169 “COMPLY” Companies. 5 Companies “NOT COMPLY” . “NOT COMPLY” status are resulted by administrative matters, not of Illegal timber raw material matters.

JABODETABEKComply: 7Not Comply: 2Process: 18Auditors: 13

NORTH SUMATRAComply: 23Not Comply: 0Process: 3Auditors: 6

EAST JAVAComply: 73Not Comply: 0Process: 19Auditors: 12

EAST KALIMANTANComply: 7Not Comply: 0Process: 0Auditors: 1

LAMPUNGComply: 1Not Comply: 0Process: 0Auditors: 2

WEST KALIMANTANComply: 4 Not Comply: 1Process: 0Auditors: 1

SOUTH SUMATRAComply: 1Not Comply: 0Process: 0Auditors: 2

CENTRAL KALIMANTAN Comply: 1Not Comply: 0Process: 1Auditors: 2

CENTRAL JAVAComply: 40Not Comply: 1Process: 21Auditors: 10

MALUKUComply: 1Not Comply: 0Process: 0Auditors: 1

SOUTH KALIMANTANComply: 2Not Comply: 0Process:1Auditors: 2

SOUTH SULAWESIComply: 6 Not Comply: 0Process: 1Auditors: 1

NORTH EAST SULAWESIComply: 2Not Comply: 1Process: 0Auditors: 1

PROCESS SCHEME OF TIMBER LEGALITY VERIFICATION

Preparation Implementation Reporting

Scope of verification, License Holder Profile

Industry hascomply to minimum requirements

collect public (multi parties)inputs or recommendations

Inform the certification result

Application

Document review

Audit Plan Publication at :• Certification Body

Website• Ministry of Forestry

Website• Village / Sub District• Mass media

Check

Scheduling and Team Arrangement

Public Consultation

Field Audit( Max 21 days )

Documents Verification

Field Observation

Report of Field Verification

Decision Review

Certification Decision

COMPLY

Issue Legality Timber Certificate

Sub License Contract

Yes

Yes

No

No

Decision Report

APPEAL

New Evidence

Yes

Publication

No

Publication

Certificate Issuance Publication

Information to IMRecapitulation of Certificates Issuance

Raw Material Sources Tracing

Interview

Assurance of Legal Source

The Use of V-Legal Logo

Principles of SVLK Certification

SVLK assessment consists of 5 principles:• Company legality• Raw material legality• Production legality• Local and export marketing legality• Fullfilment of employee’s safety and welfare based on regulation

applied

The principles arranged into 48 verifiers, each of verifier has to be

COMPLIED

SCHEME OF V – Legal DOCUMENT ISSUANCE

Preparation Implementation V-Legal Document

Application by Listed Exporters

Producer /Non Producer

Verification of Application

Comply

Scheduling for Inspection

Inspection of Export Product Raw

Material Legality

Yes

No

Conformity and Sufficiency Analysis

of Raw Materials

Having Timber Legality

Certificate?

Non-Certified Applicants

Certified Applicants

Data Entry & Verification

• Raw Material Input

• Production• Marketing

Non-Conformity Report

Conform

Database Update of Material

Balance

No

IssueV – Legal Document

Yes

ConformNon-Conformity

Report

LIU

No

IssueV – Legal Document

LIU

Yes

NoYes

THANK YOU

Strategic Business UnitSucofindo International Certification Services

Graha Sucofindo Jl. Pasar Minggu Kav. 34 Jakarta Selatan 12780

Telp : +6221-7983666

SVLK INDUSTRY STANDARD

Standard of Timber Legality Verification for Forest Industries ( IUIPHHK, IUI DAN TDI )

Ministry of Forestry Directorate General Decree P.8/VI-BPHH/2012

I. Company Legality, verify:a. Company License Documentb. Company Registration Document c. Trade License Documentd. Public Hazard Disturbance Licensee. Company Tax Registration Number

Cardf. Environmental Impact Analysis

Documentg. Industrial Registration Licenseh. Raw Material Fulfillment Plan i. Listed Exporter of Forest Product

Industry

II. Company Legality (for home industry and group production), verify:

a. Group Establishment Statement b. Company Tax Registration

Number Card

III. Company Legality (for Non Producer Exporters which have member of non listed home industry exporters) verify:

a. Listed Exporter of Forest Product Industry

b. Having agreement or contract with SLK Certified Company

III.Raw Material Legality, verify:a. Raw material supply contract

documentb. Log Receiptc. Timber Import Document (for timber

import only)d. Log/ Timber Delivery/ Transportation

Document.e. Certificate of Timber Transportation

Documentf. Mutation report of raw material

LMKB/LMKBK/LMHHOKg. Completion documents of Log Raw

Material Report (SK RKT)

IV. Production Legality, verify:

a.Tally sheet of raw material usage and productionb. Production report of processed materialc. Production not exceed the allowance of

production capacity

V. Production Legality for production through cooperation with other parties (industrial or household/industrial craftsmen), verify:

a.Contract document or cooperation contract of production process

b.Legality document of cooperate company

c. Segregation of timber products which is proceed by cooperate company

d.Availability of raw material documentation, process and production export budget if exportation done by other party



VI.Legality of Domestic Trade, verify:

a. PKAPT document

b. Report document of PKAPT

c. Sailing License document (SIB)

d. Document declaring the ship’s identity. SKSKB and/or FAKB and/or FAKO and/or SKAU and/or SKSKB cap KR or Nota

e. Log permanent identity (for Log)

VII. Marketing Legality, verify :a. Export Notificationb. Packing Listc. Invoiced. B/Le. V-Legal Documentf. Surveyor Report g. Export Duty Payment Receipt h. CITES Document



VIII. Occupational Health and Safety (OHS)Regulation Legality, verify :

a. OHS Implementation

b. Availability of OHS equipment, as APAR, APD and Evacuation route

c. Documentation of work accidents

IX. Employment Legality, verify:

a. Availability of company policy or permit for employee to form or engage in activities of employee union (Serikat pekerja)

b. Joint Working Agreement Document (KKB) or company regulations (PP)

c. No child employee



PUBLIC CONSULTATION

Purpose of Public Consultation:

To collect aspiration, input, and recommendation related to operational activities in forest management unit and forest industry due to criteria and indicator verified

Benefit of Public Consultation:

1. Input to audit team on Sustainable Forest Management Certification and Timber Legality Verification

2. Input to auditee / company in regard with situation and condition of related parties impacting to the company’s operational activities.

3. Provide opportunities for stakeholders to share aspiration, information, and input on forest management.

Stakeholders in Public Consultation:

1. Local Government and Local Representative of Forestry Ministry Unit

2. NGO3. Local People around Forestry Management Unit4. Community Leaders5. Religion Leaders6. Subcontractor Company7. Other Parties

Stakeholders Input in Public Consultation:

1. Industry and Forest Management Unit Performance2. Regulation Nonconformity, such as in environmental

management3. Unfavorable condition impacting to the communities

V-LEGAL INSPECTION - Company Legality,

Company License Document, Industrial Registration License, Tax Registration Number Card, Listed Exporter License, Raw Material Fulfillment Plan, Raw Material Supply Contract Document, Supplier Timber Legality Certificate

− Raw Material,

SKSKB/FAKB/FAKO/SKAU/SKSKB/Nota, LMK and/or documentation of stock and raw material usage and CITES documents

- Inspection of Production Process,

Including : Timber Mutation Report (LMK) or Product stock report- Inspection of exportation

Including: PEB documents

PROCESS SCHEME OF SUSTAINABLE FOREST MANAGEMENT

CERTIFICATIONPreparation Implementation Reporting

Application

Document Review

Audit Plan Publication at:• Certification Body Website• Ministry of Forestry

Website• Village / Sub District • Mass Media

Inform to IM

Check

Scheduling &Team Arrangement

On-site Verification

( Max 21 days )

Document Verfication

Field Observation

Field Verification Report

Decision Review

Certification Decision

Comply?

Yes

Yes

No

No

Decision Report

tdk

Certificate Issuance and/ or

PublicationCoordination with Local Forestry Goverment

Data Completed Submission

1

2

3

4

Appeal in 14 days max.

after reporting date

Accept

Not Accept

Appeal Verification in 20 days max. since

received

Note : Activities 1,2,3 and 4 have to be accomplished in 14 days

Public Consultation

Stage 1 Audit

SurveillanceRecertification

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• Application (1 day)• Document review (2 days)• Audit Stage 1 (3 days)• Preparation of Site Verification (2 days)• Request for publication on Ministry of Forestry Website 10 days before

publishing• Publication (14 days before site verification)

Asessment Plan

TIME LINE OF TIMBER LEGALITY ASSURANCE SYSTEM (TLAS) CERTIFICATION

IN NORMAL CONDITION, CERTIFICATION CARRIED OUT IN 81 DAYS © yuki

Assessment of Sustainable Forest Managements Indicators

Assessment norm per indicator

Key Indicators -GOOD result is required

GOOD final result if key indicators score GOOD

Tim

ber

Lega

lity

Sta

ndar

d –

GO

OD

res

ult

is r

equi

red

Assessment of IUPHHK is harder © yuki

Tim

ber Legality Standard –

GO

OD

result is required

Indicator

DefinitionAssessment

Tools

Verifier ScoreNorm/Value of Indicator

≤ 5 Years > 5 Years

D CD D CD 1 (Bad) 2 (Moderate) 3 (Good)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

The determination of the indicators : • Good, If the total value of the verifier is between 76% until 100% of the total value of the

maximum possibilities that can be achieved, without any bad score for dominant verifier.• Moderate, if the total value of the verifier is between 60% until 75% of the total value of the

maximum possibilities that can be achieved, without any bad score for dominant verifier.• Buruk, If the total value of the verifier is 59% of the total possible maximum value that can

be achieved, and/or contained bad score for verifier.


Based on Decree of Permit

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Indicator

DefinitionAssessment

Tools

Verifier ScoreNorm/Value of Indicators

≤ 5 Years > 5 Years

D CD D CD 1 (Bad) 2 (Moderate) 3 (Good)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Criteria Indicator VerifierVerifier Score

Verifier Actual Score

Weighted Average Verifier

Maximum Score of Verifier

1. Prerequsite

1.1 1.1.1 CD (1) 3 3 3

1.1.2 CD (1) 3 3 31.1.3 D (2) 2 4 61.1.4 CD (1) 3 3 31.1.5 CD (1) 3 3 3

Jumlah 16 18

16/18 X 100 % = 88,89%GOOD

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IndicatorPerformance

Indicators Score

Weighted Average Verifier

Maximum Score of Indicator

1.1 Good 3 31.2 Moderate 2 31.3 Good 3 31.4 Good 3 31.5 Good 3 32.1 Good 3 32.2 Good 3 32.3 Good 3 32.4 Bad 1 32.5 Good 3 32.6 Moderate 2 33.1 Good 3 33.2 Moderate 2 33.3 Moderate 2 33.4 Good 3 33.5 Good 3 33.6 Good 3 34.1 Good 3 34.2 Moderate 2 34.3 Good 3 34.4 Good 3 34.5 Moderate 2 3

Total 58 66

Total score : 58 or 58/66 x 100 % = 89 %

Final Score:

• Good, If the total value of the verifier is between 76% until 100% of the total value of the maximum possibilities that can be achieved, without any bad score for dominant verifier.

• Moderate, if the total value of the verifier is between 60% until 75% of the total value of the maximum possibilities that can be achieved, without any bad score for dominant verifier.

• Buruk, If the total value of the verifier is 59% of the total possible maximum value that can be achieved, and/or contained bad score for verifier.

Performance Value of Sustainable Forest Managements Indicators

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- Sustainable Production Forest Management Standards -

1.1

Certainty of license holder forest area and right holder of forest management

1.2

License Holder Commitment

1.3

The number and the adequacy of Forestry Professionals on All levels to support the implementation of Research, Education, and Training

1.4

Capacity and mechanisms for Implementation Planning of Periodic Monitoring, evaluation and presentation of feedback regarding the achievement of Progress (of activity) of IUPHHK – HA/RE/HT/ Rights Holder of management

1.5

Approval on the basis of preliminary information without compulsion

2.1.The arrangement long-term work plan in sustainable forest management

2.2.Harvesting levels for each type of forest products and non forest product on each type of ecosystem

2.3.The implementation of the application of silviculture system to ensure the regeneration of a forest

2.4.Availability and application of eco-friendly technology for forest utilization

2.5.

The realization of the harvesting in accordance to work plan of logging/harvesting/harnessing on acreage it works

2.6.

The level of investment and a adequate and meet the needs in forest management, administration, research and development, as well as improvement and ability of human resources

Prerequsite Criteria Production Criteria

Ecology Criteria Social Criteria

3.1.

The level of investment and a adequate needs in forest management, administration, research and development, as well as improvement of human resources capacity

3.2.

Protection and security of Forest

3.3.

The management and monitoring of the impact on land and water as a result of Forest Utilization

3.4.

Identification of Protected flora and fauna and/or endangered (Endangered), Jarang (Rare), Terancam Punah (Threatened) dan Endemik (endemic)

3.5.

Flora Management for:1. An area of Forest Production from Un-disturb area and un-damage area2.Protection of Protected flora

3.6.

Flora Management for:1. An area of Forest Production from Un-disturb area and un-damage area2.Protection of Protected fauna

4.1.

Kejelasan deliniasi kawasan operasional perusahaan/ pemegang izin dengan kawasan masyarakat hukum adat dan/atau masyarakat setempat

4.2.Implementation of company social responsibility in accordance to the regulationI

4.3.Availability of mechanisme and implementation of fair benefit distribution for stakeholders

4.4.Availability of conflict resolution mechanisme

4.5.Protection, development, and improvement of labor Welfare

- Sustainable Production Forest Management Standards -

LEGALITY VERIFICATION BODY AND LICENCING AUTHORITY PT SUCOFINDO (PERSERO)

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