3 rd HIGH LEVEL MARKET DIALOGUE – 2013 THE NEW ERA OF INDONESIAN LGAL TIMBER PRODUCTS TO MEET GLOBAL MARKETS AUSTRALIA – CHINA – EUROPE – JAPAN – USA August 21 st, 2013, The Sultan Hotel, Jakarta, INDONESIA WRAP-UP AND CLOSING SESSION

CONCLUSION Indonesia is now ready to enter legal timber market era as the country has developed and implemented SVLK/TLAS; Indonesia is expecting to sign VPA with the EU on 30 September 2013; SVLK/TLAS is a major step forward to promote and increase timber trade in global market. However, it needs credibility and transparency in implementation;

As of July 2013, SVLK certificate has been awarded to 23 units of natural forest concessions, 44 units forest plantation; 19 units of community forests; and 701 units of wood industries. SVLK / V-legal has also been successfully tested with timber consignments to 8 European countries last year; For maintaining and improving SVLK/TLAS, financial and technical supports from partners are essential.

THE WAY FORWARD Increased trust and recognition of SVLK as a credible system that provides assurance to the legality of imported timber; Major markets to prohibit the entrance of illegally harvested timber products – only timber with V-legal document; Provide price incentive that reflects the additional costs incurred by producers in pursuing SVLK/TLAS; Provide capacity building and financial assistance for the small, medium and community enterprises to comply with SVLK/TLAS

Strengthen bilateral and multi-lateral cooperation to promote responsible trade of timber and timber products e.g. Indonesia and Australia to develop a guideline for importation of legal timber;