Dec 24, 2013. /Lesprom Network/. A staff member of the Indonesia Multi Stakehoder Forestry Programme (MSFP) has said that many small businesses are facing fundamental problems that prevent them from satisfying an audit to obtain the government’s timber legality verification system (SVLK) certificate, as ITTO reported.

Speaking during a discussion held by the International Centre for Trade and Sustainable Development (ICTSD) and the Center for International Forestry Research (CIFOR), Agus P. Djailani, of the MSFP said “To qualify for an SVLK audit companies must posses various legal business permits, however small companies find this very costly and complicated.”

Available data show that, for instance, each SME may require more than Rp 17 million ($1,394 million) to acquire the necessary environment-related business documents. In addition, the SVLK audit process costs between Rp 24 million ($1,970 million) and Rp 30 million ($2,460 million) per enterprise and is valid for only three to six years.

According to CIFOR, there are 4,000 registered timber exporters as of now. However, there are still tens of thousands of unregistered small timber businesses.

CIFOR forest governance scientist Krystof Obidzinski said it would take more time, money and capacity building to assist small businesses in preparing themselves to undergo the SVLK audit.

In response the Forestry Ministry Director of Forestry Development, Agus Sarsito, said that inter-ministry coordination — between the Forestry, Trade and the Cooperatives and Small and Medium Enterprises ministries - was important for solving the problem.

Trade Ministry Director, Oke Nurwan, argued that the main problem is the lack of awareness of export trends and of the SVLK amongst small entrepreneurs.

“They (SMEs) see the SVLK audit as an obstacle, though such certification is getting more and more necessary in the global market,” he said.