Business Seminar Surabaya kicks off promotion drive
PRESS RELEASE Breukelen, 25 February 2016
Business seminar kicks off promotion drive to boost the international trade in certified wood
products from Indonesia: “Sustainable. Quality. Guaranteed.”
A two-day trade encounter was facilitated from January 25 to 26 in Hotel Majapahit, Surabaya under the motto:
“Indonesian tropical hardwood products: Sustainable. Quality. Guaranteed.” The event was attended by
representatives of 19 overseas timber trading companies and 28 Indonesian wood processing industries. The trade encounter on the first day, consisted of a half-day seminar discussing international market perspectives,
plus a half-day trade fair, completed, on the second day, with wood factory visits around Surabaya.
The seminar is the third in a row, organized by the Indonesian Association of Forest Concessionaires (APHI) in
cooperation with The Borneo Initiative, an international non-profit organization that supports sustainable forest
management and the trade in certified wood products from Indonesia. The event was the kick-off for a
promotional of Indonesian certified wood products, emphasizing their high environmental and social implicit
values under the motto: “Sustainable. Quality. Guaranteed.”
The Indonesian manufacturers present in the trade encounter offered a broad range of wood products including
wood panels (plywood), veneer, indoor flooring, outdoor decking, truck flooring, construction wood, doors and
window frames, scantlings, and garden furniture. They realize that to grow their market share in the
international markets, quality and legal origin are key factors. Therefore, all producers in the business event
comply with Indonesia’s mandatory forest certification system (SVLK), while some combine this with voluntary
certification from the Forest Stewardship Council (FSC®). The Borneo Initiative offers financial support
towards capacity building for certified forest management, and can count on the participation of almost 25% of
all active forest concessions. The Indonesian forest sector is therefore taking major steps towards legal and
sustainable production. This trade encounter offered a meeting platform between the newly certified suppliers,
and leading overseas trading companies who have buying policies dedicated to legal and sustainable origin of
Lenny Shibley, President of Inter Continental Hardwoods explains: “sustainability, certification and legality are
the core values of the tropical timber trade. TBI has facilitated all of the values effectively. The initiative to bring
suppliers and customers together in a working format has helped our company to find good suppliers that value
all of the same things that we do as responsible buyers”.
“Certification is vital to our company to maintain market share”, explains Henry Kumala Putra and his partner
William Goh of PT Jatim Sentra Utama, a manufacturer of hardwood garden products and decking. “Because of
the difficult market conditions in the European market these past few years, we receive little price margin only
for being certified, however, we managed to attract to new buyers because they gave us preference over others.
The share of FSC® certified products was 30% in 2010, and went up to 80% in 2015. We sell mostly to do-ityourself
outlets in the Netherlands, Germany, France, and in other European countries and Australia.”
An exit poll indicated that all respondents made new trade contacts and request a repeat event next year.
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Indonesian Association of Forest Concessionaires (APHI)
APHI is a trade association for forest concessionaires in Indonesia. http://www.rimbawan.com
The Borneo Initiative
The Borneo Initiative is a non-profit organisation that operates close coordination with the Indonesian
Association of Forest Concessionaires (APHI). The Borneo Initiative offers grant funding to forest concessions to
enhance their capacity for sustainable forest management. In addition, The Borneo Initiative promotes
international trade in certified wood products.
The Borneo Initiative operates as a platform, support to forest concessions is delivered with assistance from
partner organisations as APHI, TFF, GFTN, TFT, TNC, and Wana Aksara.
The Borneo Initiative is registered in the Netherlands, with funding from charities, private sector, and
institutional donors including The Sustainable Trade Initiative (IDH) (see below). For more information:
International Wood Products Association (IWPA)
Established in 1956, IWPA is the leading international trade association representing the North American
imported wood products industry, with over 200 companies and trade organizations engaged in the import of
hardwoods and softwoods from sustainably managed forests in more than 30 nations across the globe.
Association members consist of three key groups involved in the import process: U.S. importers and consuming
industries, offshore manufacturers and the service providers that facilitate trade. http://www.iwpawood.org
Extended text on motto:
Indonesian tropical hardwood products: Sustainable. Quality. Guaranteed.
Indonesia – emerging centre of sustainability
Amid global concerns over climate change mitigation, forest conversion, destructive forest fires etc., in reality,
the Indonesian forest sector is taking significant steps towards sustainability and responsible forest
management. Government is rolling out its sector-wide mandatory compliance program (SVLK) with focus on
legal origin and compliance with forest management standards. Additionally, almost a quarter of all active forest
concessions are taking additional steps towards voluntary FSC®-certification.
Indonesia – a tradition in quality
Wood industries in Indonesia have a sound reputation for craftmanship and quality, with the capability to
comply with international product standards. Indonesian wood industries can supply you with plywood,
flooring, decking, mouldings and joinery, garden wood, indoor and outdoor furniture, and certified wood chips.
Indonesia – guaranteed supply across a broad range of species
Indonesia has vast areas of production forest, consisting of both plantation forests and natural forests. The
forests produce a wide range of tropical hardwood species with a reliable long-term supply capacity.