Constrain of smallholder forest management on timber legality assurance system (SVLK) certification: A case study in KTH Enggal Mulyo Lestari, Ponorogo District, East Java Province

Abstract

Timber Legality Assurance System or Sistem Verifikasi Legalitas Kayu (SVLK) is implemented and recognized as a certification for timber products exported from Indonesia. SVLK applied to all the forest product chains included the smallholder Forest Management Unit (FMU). It has been a particular concern to smallholder FMU on achieving the compliance of SVLK at least at two points: 1) the capability and knowledge for the technical process; and 2) the challenges to meet the certification cost. Researches have been done on the capability, challenges and opportunity, cost and benefit, strategies, and how the absence of smallholders FMU certification on supply chain affected timber product legality uncertainty. Meanwhile, a concern on smallholder FMU’s willingness to pay (WTP) certification as one of the main constraints of SVLK implementation is still unseen. A case study in KTH Enggal Mulyo Lestari aims to reveal the actual willingness to pay to fulfill the SVLK certification cost. Research conducted by Focus Group Discussion followed by a questionnaire. This study’s findings illustrate that the WTP of smallholders FMU is still under the certification costs minimum standard stipulated on regulation. Some partnerships with the wood industries, local government and non-government organizations are suggested in this article.