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Preparing VPA in Indonesia Preparing VPA in Indonesia through multi-stakeholders through multi-stakeholders

processprocess

Presented to Illegal Logging Update and Stakeholder Consultation Presented to Illegal Logging Update and Stakeholder Consultation

Chatham House, London 26 January 2007 Chatham House, London 26 January 2007

by Dr. Hadi Daryanto, by Dr. Hadi Daryanto,

the Ministry of Forestry of the Republic of Indonesiathe Ministry of Forestry of the Republic of Indonesia

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SINCE THE (FLAG) FOREST LAW ENFORCEMENT & GOVERNANCE EAST ASIA MINISTERIAL CONFERENCEHELD IN BALI , INDONESIA IN SEPTEMBER 2001,INDONESIA HAS DONE FOLLOWING STEPS

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LETTER OF INTENT between THE MINISTRY OF FORESTRY OF REPUBLIC OF INDONESIA andTHE USDA FOREST SERVICE OF UNITED STATES OF AMERICA regarding COOPERATION IN SUSTAINABLE FOREST MANAGEMENT WAS SIGNED IN JAKARTA ON 13th NOVEMBER 2006 ABOVE HAS BEEN FOLLOWED BY MEMORANDUM OF UNDERSTANDING (MOU) between THE GOVERNMENT OF REPUBLIC OF INDONESIA and THE UNITED STATES OF AMERICA onCOMBATING ILLEGAL LOGGING & ASSOCIATED TRADE SIGNED ON 17th NOVEMBER 2006.

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ACKNOWLEDGING THE EFFORTS BY THE EUROPEANUNION TO COMBAT ILLEGAL LOGGING AND ASSOCI-ATED TRADE UNDER THE EUROPEAN UNION FORESTLAW ENFORCEMENT, GOVERNMEANCE AND TRADE (FLEGT) ACTION PLAN WAS ADOPTED IN MAY 2003,

OUR PRESIDENT ISSUED PRESIDENTIAL INSTRUCTIONNO. 4, ON 18/MARCH 2005 WHICH INVOLVES 18 GOVERNMENT’S AUTHORITIES TO STRICTLY WATCH AND CONTROL THE LEGALITY OF WOOD PRODUCTS .

ACKOWLEDGING THE FLEGT-VPA INITIATIVE AND INTERNAL CONSULTATION AMOUNG

MINISTRY OF FORESTRY STAFFS AND THEN STIPULATED A NATIONAL WORKING GROUP AND VOCAL POINT FOR PREPARING VPA MULTI STAKE

HOLDERS DIALOG ON THE BEGINING 2006

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Dialogue ProcessDialogue Process 11stst National Workshop: 12 April 2006 National Workshop: 12 April 2006 Dissemination and multi-stakeholders Dissemination and multi-stakeholders

consultation at the regions (Sumatra and consultation at the regions (Sumatra and Kalimantan): August 2006Kalimantan): August 2006

Discussion seriesDiscussion serieso Clarification from EU as response of the 1Clarification from EU as response of the 1stst

National Workshop (July 2006)National Workshop (July 2006)o Discussion with DfID representative (Sep 2006)Discussion with DfID representative (Sep 2006)o Discussion with EU Representative in Malaysia Discussion with EU Representative in Malaysia

(Sep 2006)(Sep 2006)o Discussions on preparing of the joint statement Discussions on preparing of the joint statement

on FLEGT-VPAon FLEGT-VPA 22ndnd National Workshop: 21 November 2006 National Workshop: 21 November 2006

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• Jakarta, 12 April 2006 • Purpose: formulating on consolidation of multi-

stakeholders opinion regarding FLEGT-VPA proposal from EU

• Participants: government, private sector, national and local NGOs

• Results: o Stakeholders aware that VPA is a good initiative

for combating illegal logging, however, there are some concerns, such request for reciprocal commitment, non discriminative, etc

o schedule for further dialogue process agreed, such as dissemination in the regions

o Clarification from EU

1st National Workshop

Dialogue Process …Dialogue Process …

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Dissemination and multi-stakeholder consultations in Dissemination and multi-stakeholder consultations in Kalimantan and Sumatra RegionsKalimantan and Sumatra Regions

Pontianak, West Kalimantan, 24 August 2006Pontianak, West Kalimantan, 24 August 2006 Jambi, Sumatra, 30 August 2006Jambi, Sumatra, 30 August 2006 Participants: local government representatives, civil societies, Participants: local government representatives, civil societies,

private sectorsprivate sectors Result: no objections on initiatives to achieve sustainable Result: no objections on initiatives to achieve sustainable

forest, however, there are internal issues in combating illegal forest, however, there are internal issues in combating illegal logging that should be solved, such community welfare, law logging that should be solved, such community welfare, law enforcementenforcement

Purpose: disseminate the FLEGT-VPA to relevant Purpose: disseminate the FLEGT-VPA to relevant stakeholders in the regions; stakeholders in the regions; to obtain response for to obtain response for Indonesia’s position in the preparation to entering the Indonesia’s position in the preparation to entering the negotiation processnegotiation process

Dialogue Process …Dialogue Process …

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2nd National Workshop

• Jakarta, 21 November 2006 • Purpose: to obtain inputs on important issues

to be included in the negotiation list and composition of the negotiation team

• Participants: government, private sector, national and local NGOs

• Results: Indonesia is ready to enter the negotiation process; list of negotiation points developed; list of negotiator’s proposed

Dialogue Process …Dialogue Process …

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1. Follow Indonesian legality regulations, and should be internationally recognized, including by EU

2. Acknowledge among standards of the different VPA countries (to avoid that different standards may lead to different costs for industries)

3. Be non discriminative on trade treatment among VPA signatory countries

4. Use independent monitoring which would be negotiated and agreed upon by both parties

5. Reciprocal obligations by EU (commitment not to import illegal products; sanctions on importers procuring illegal timber from a VPA country)

Dialogue Process …Dialogue Process …

Result from multi-stakeholders consultations: basically Indonesia welcomes efforts for combating illegal logging and associated trade, including the Voluntary Partnership Agreement. However such efforts should:

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The Hon. M.S. Kaban, Minister of Forestry Indonesia met The Hon. M.S. Kaban, Minister of Forestry Indonesia met Commissioners Louis Michel and Stavros Dimas, responsible Commissioners Louis Michel and Stavros Dimas, responsible for Development and Environment, respectively, in Brussels for Development and Environment, respectively, in Brussels 8 January 2007. 8 January 2007.

They agreed to initiate formal negotiations towards They agreed to initiate formal negotiations towards conclusion of a voluntary partnership agreement (VPA) on conclusion of a voluntary partnership agreement (VPA) on Forest Law Enforcement, Governance and Trade (FLEGT), Forest Law Enforcement, Governance and Trade (FLEGT), which will provide assurance that Indonesian forest products which will provide assurance that Indonesian forest products imported to the EU are verified to be legal. imported to the EU are verified to be legal.

The agreement will also provide for cooperation, including The agreement will also provide for cooperation, including capacity building, market and technical studies and capacity building, market and technical studies and knowledge-sharing.knowledge-sharing.

BRUSSEL 8 JANUARY 2007: Indonesia and EU agree BRUSSEL 8 JANUARY 2007: Indonesia and EU agree to tackle illegal logging through a FLEGT to tackle illegal logging through a FLEGT Partnership. Partnership.

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DialoguDialogue e ProcessProcess

EC – Indonesia EC – Indonesia Joint Joint Statement on Statement on FLEGT-VPA FLEGT-VPA Brussels, Brussels, 8 January 20078 January 2007

Negotiation Process

Current StatusCurrent Status

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Joint Statement Joint Statement

EC – Indonesia, EC – Indonesia, Brussels,Brussels,

8 January 20078 January 2007

Current StatusCurrent Status toto Next StepsNext Steps

Further discussion Further discussion on list of negotiation on list of negotiation teamteam

Further discussion Further discussion on list of issues to on list of issues to be discussed during be discussed during negotiationnegotiation

Conducting study on Conducting study on pros and cons of VPA pros and cons of VPA for Indonesia’s for Indonesia’s benefitsbenefits

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Thank youThank you