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2013/SOM1/EGILAT/015 Agenda Item: III.B.4.b

Process of Legality Verification by Sucofindo

Purpose: Information Submitted by: Indonesia

3rd Experts Group on Illegal Logging and Associated Trade Meeting

Jakarta, Indonesia29–31 January 2013

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LEGALITY VERIFICATION BODY AND LICENCING AUTHORITY

PT SUCOFINDO (PERSERO)

PT. Superintending Company of Indonesia

(Persero) has been established since

1956. PT SUCOFINDO engaged in

inspection, supervision, testing and

assessment.

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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 BRANCHES33 Branches32 Service PointsLabs service at PT SUCOFINDO branches and service points

SGS Geneva Swiss, Surveyor and Quality System Certification InstitutionNATA Australia, Accreditation of Testing LaboratoriesFOSFA England, Inspections and Palm Oil Testing AnalysisRWTUV Germany, Testing Laboratories and Quality System Certification InstitutionRvA Netherlands, Accreditation of Quality System Certification InstitutionNKKK Japan, Surveyor and Quality System Certification InstitutionIFIA England, Inspection and Comodity SupervisingSISIR Singapore, Product Certification, Quality System Certification Institution and Testing LAboratorySIRIM Malaysia, Product Certification, Quality System Certification Institution and Testing LaboratoryGAFTA England, Inspection of grain and fodderUL USA, Product Certification and Quality System Certification InstitutionLloyds England, Insurance Claim SettlementCCIC RRC, SurveyorINSPECTA CzechSurveyor and ConsultantIndonesia Ecolabel Institute, Sustainabel Forest Management and Chain of CustodyNational Acreditation Commite, SFM and SVLOthers

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TIMBER LEGALITY ASSURANCEPT SUCOFINDO (PERSERO)

PT SUCOFINDO (Persero) has issued 153 “COMPLY” Timber Legality Certificates and 4 “NOT COMPLY” Timber Legality Certificates. “NOT COMPLY” Certificates issuance resulted by Administrative matters, not because of

Illegal timber raw material.

JABODETABEKComply: 7Not Comply: 1Process: 7Auditors: 16

NORTH SUMATRAComply: 19Not Comply: 0Process: 5Auditors: 6

EAST JAVAComply: 69Not Comply: 0Process: 14Auditors: 12

EAST KALIMANTANComply: 6Not Comply: 0Process: 2Auditors: 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: 34Not Comply: 1Process: 9Auditors: 5

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

Preparation Implementation Report

Application

Document review

Audit Plan Publication :• Website of Certification Body• 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 Making

Certification Desicion

COMPLY

Issued Legality Timber Certification

Sub Lisence Contract

YES

YES

NO

NO

Decision Report

APPEAL

New Evidence

YES

Decision Publication

NO

Decision Publication

Certificate IssueancePublication

Informasi Ke PIRecapitulations of Certificate issuance

Trace Raw Material Source

Interview

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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

Preparation Implementation V-Legal Document

Application by ETPIK/ETPIK Non

Producer

Verification of Application

Comply

Scheduling for Inspection

Inspection of Export Product Raw

Material Legality

YES

NOConformity and

Sufficiency Analysis of Raw MAterials

Timber Legality Certifica

te Non-Certified Applicants

Certified Applicants

Entry Data & Verification

• Raw Material Input• Production• Marketing

Non-ConfirmityReport

Confirm

Database Update of Material

Balance

NO

IssuedV – Legal Document

YES

Confirm Non-ConfirmityReport

LIU

NO

IssuedV – Legal Document

LIU

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THANK YOU

Strategic Business UnitSucofindo International Certification Services

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

Telp : +6221-7983666