Agenda Introduction PT Pundi Uniwood Industry Company profile - - PDF document

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SLVK Timber Legality Verification Sistem Verifikasi Legalitas Kayu (SVLK) Indonesian Timber Legality Assurance System (INDO-TLAS) Community Plantation Partnership Hutan Rakyat Kemitraan

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Agenda

• Introduction PT Pundi Uniwood Industry
• Company profile
• Certifications
• Product range
• Wood species
• Commitments
• Community Plantation Partnership
• What is “Hutan Tanaman Rakyat” (HTR) or “Peoples Plantation”?
• Rationalization to promote replantation through strategic partnership with

local communities

• PT PUI partnership program: Phases of development & result
• SVLK Timber Legality Verification
• Means & purpose of SVLK
• Implementation of SVLK

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PT Pundi Uniwood Industry

• Established in the year 2000 as a locally funded private firm
• A premier in manufacturing wood products: Bare Core, Block Board & Plywood
• Total production capacity: 100,000m3/year
• Total employees: 1,800
• Sales market ratio

Export: 80% (Middle East, South-East Asia, South Korea & China) Local: 20%

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To provide substantial benefit for Indonesia through manufacturing of wood-based products in an environmentally friendly and sustainable way.

• Utilize local resources for production to boost economic growth.
• Creates jobs to increase livelihood and welfare for the local society.
• Foster a strategic & beneficial partnership for replantation between local

communities, government and manufacturers to create a sustainable supply of logs.

Vision Mission

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Certifications

• 1. SVLK No. 0010/MHI-VLK

Issuer: PT Mutu Hijau Indonesia Valid since 23 May 2012

• 2. SVLK No. 007/MHI-VLKH

Issuer: PT Mutu Hijau Indonesia Valid since 14 November 2013 For “Hutan Rakyat Kemitraan”/ “Community Replantation Partnership”

• 3. CoCFSC No. TT-COC-005843

Issuer: PT Mutu Agung Lestari Valid since March 2016

2011 2012 2013 2014

Bronze Medal Gold Medal Gold Medal Platinum Medal

Medal of appreciation from Indonesian Ministry of Forestry Medal of appreciation for the effort

• f establishing & nurturing

Woodbased Industries through “Hutan Rakyat” / “Peoples Plantation”

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Product Ranges

Bare Core Block Board Plywood

Specifications L x W 1220mm x 2440mm Thickness 13mm Specifications L x W 1220mm x 2440mm Thickness 15mm & 18mm Specifications L x W 1220mm x 2440mm Thickness 2.7mm, 3.6mm, 5mm, 9mm, 12mm, 15mm & 18mm

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Wood Species – Fast growth rate

Anthocephalus Cadamba Local name: Jabon Softwood Time of harvest: 7 – 10 Years Albasia Falcata Local name: Albasia Softwood Time of harvest: 5 – 7 Years

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Commitments

• We are committed to utilizing locally sourced raw materials to produce wood-

based products with an excellent quality while still competitively priced.

• Manufacturing wood-based products which has a major proportion of

Jabon/Albasia in order to boost demand for the following wood species.

• 95% of our logs supplies are sourced from sustainable plantations through

strategic partnerships ever since 2010. In order to established a sustainable resources, we are committed in planting 500,000 trees yearly. To date, our collaborations with local communities have planted 3,200,000 trees in a total area of 4,900Ha.

• Increases farmland productivity.
• Contributes in raising awareness of climate change, taking action & apply

measurements to reduce greenhouse gases.

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“People Plantation”

• r

“Hutan Tanaman Rakyat”?

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Why People Plantations?

• 1. Provide a sense of belonging for the communities
• Establish responsibilities
• Potential growth for investment
• Promotes better land management
• Ease of access & protection
• 2. Easier documentation and application for the usage of

plantation harvested logs compared to natural harvested logs.

• 3. Promised a better outlook for the revitalization of sustainable

logging and reviving wood-processing industries.

• 4. Inaccessibility to state forest lands
• Difficulties in accessibility, management & security.
• May result in higher cost

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Community Plantation Partnership

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Birth of Strategic Partnership

• 1. Substantial amount of lands that are not being managed properly and left

unproductive.

• 2. Difficulties to obtain constant supply of logs.
• 3. Local village communities are still living in poverty.
• 4. Increasing need to improvise to better compete with foreign competitors.
• 5. Unsustainable and bleak future for the wood-based industries.
• 6. Increasing evidence of impact due to climate change.

Reasons for establishment Benefits & advantages

• 1. Close, reliable and constant supply of logs.
• 2. Huge demand for logs for local industry.
• 3. Competitively priced raw materials.
• 4. Increase productivity of wood-based industries & unused lands.
• 5. Improved livelihood of surrounding communities.
• 6. Poverty reduction & rural economic growth.
• 7. Plays a crucial part in combating climate change.
• 8. Moving towards a sustainable industrialization.

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Involvement & Participation

• Through research & collaboration with community of farmers, PT PUI

cultured a seedbed of superior breed of Albasia & Jabon seedling.

• Seeds are distributed throughout freely to members of our Community

Plantation Partnership program.

• Basic facilities for plantation are provided for the community.
• Technical knowledge for cultivating, nurturing and logging process in every

phase of plantation are taught and implemented under supervision.

• Provide assurance that supply of logs will be bought at present market

value.

• Facilitate the process for members to adhere SLVK requirements.

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Joint Community Plantation Locations

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Plantation Process

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Germination Ready for plantation Land preparation Plantation (2 months old)

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Plantation (6 months old) Plantation (1 year old) Plantation (1.5 years old) Plantation (2 years old)

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Monitoring activities done periodically

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Effective since 1st January 2015

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4 Basis of Foundation

Essential components that forms the basis of SVLK

• 1. Legality definition: The legality definition clearly states the aspects of Indonesia

law for which the timber legality assurance system will systematically seek evidence of compliance. Indonesia has different legality definitions for different kinds of rights and permit holdings

• 2. Supply chain control: The purpose of supply chain control is to ensure that

unverified products do not enter the supply chain.

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• 3. Verification of compliance: This detects whether timber products comply with the

SVLK legality definition and supply chain controls and are therefore legal. In Indonesia, independent private companies called Conformity Assessment Bodies (mandated by the Government of Indonesia and controlled by the national accreditation body, KAN) verify compliance with the legality definition. Some exemptions for small scale operators exist. Overall oversight remains the responsibility of the government.

• 4. Periodic evaluation: In Indonesia, independent audit is termed ‘periodic evaluation’

to distinguish it from the independent Conformity Assessment Body audits mentioned above. The purpose of periodic evaluation is to regularly check that all aspects of a legality assurance system are working properly. Evaluations must take place no more than 12 months apart. The evaluator will produce reports for the Joint Implementation Committee and a public report.

4 Basis of Foundation (Continued)

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Documentation

DKP/Nota Official timber documentation

• SVLK-certified supplier are required to produce DKP/NOTA for sales of certified

timber.

• SVLK-certified buyers are prohibited to purchase/process/sell timber without

DKP/NOTA documentation. V-Legal Document V-Legal Documents are Indonesian export licenses attesting legality.

• Companies that comply with the timber legality assurance system (SVLK) need to

attach a V-Legal Document to their consignments for export to any international

• market. The V-Legal Document specifies that the timber products being shipped

comply with the legality and/or sustainability standard and the supply chain control requirements as stipulated in Indonesian regulations and the VPA. Thus the V-Legal Document provides assurance that timber or timber products are

• legal. V-Legal Documents are issued by bodies authorized by the Indonesian

government to act as licensing authorities.

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PT PUI & Community Partnerships

Certified by an Independent Conformity Assessment Bodies: PT Mutu Hijau Indonesia License for utilization of timber in the community forest. Certified since November 2013 License for primary process of forest timber. Certified since November 2013

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SVLK Implementation

Make documentation Produce DKP/NOTA Issue DKP/NOTA to Buyer License for utilization of timber in the community forest. Community Partnership allow members to utilize our SVLK Certification for harvesting & selling of certified timbers.

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SVLK Implementation

Obtain DKP/NOTA Files documentation Production process for export License for primary process of forest timber. SVLK Certification needed for export Submit proforma invoice & packing list to CAB CAB issue V- Legal Document Produce transportation documents Submit documents to custom authority Process complete

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Thank you