Abstract
The Europe Union (E.U.) has agreed to grant the Forest Law Enforcement, Governance and Trade (FLEGT) license to Indonesia as the first country in the world to receive it. FLEGT VPA (Voluntary Partnership Agreement) is a bilateral agreement between the European Union (E.U.) and wood exporting countries, to improve forest governance sector and ensure that timber and wood products imported into the E.U. are produced by the laws and regulation of partner countries. The Indonesian government has obliged to implement Article 12 relating to social safeguards. Indonesia has to periodically monitor to see the extent to which the VPA has an environmental and social impact that affect the lives and welfare of vulnerable and marginalised groups. The purpose of this study is to analyse how the effect of implementation of the Sistem Verifikasi Legalitas Kayu (SVLK) as part of VPA in the small and medium forestry industry sector. Methodology survey with focus group discussions, structured interviews, and semistructured interviews to find out the response and opinion of SME’s owner and employee addressed the effect of SVLK in East Java and Central Java, Indonesia. The theory of change (ToC) was used to consider the implications of SVLK implementation on the sustainable livelihood of small and medium enterprises (SME’s). The results of this study showed that SVLK had a more significant impact on livelihoods, as follows. First, the vulnerable and marginalised groups need to be supported by stakeholders to encourage readiness in faces of SVLK impact. Second, SVLK is susceptible to the effects and at risk of losing livelihoods for women and disabled groups in a short time. This group includes vulnerable groups of aspects of adaptability and sensitivity to the effect. Third, SME’s worker groups who do not have a labour organisation are sensitive to the impact on the workplace company. This group is classified as a group that is quite vulnerable if the effect lasts long enough and on a large scale of impact.
Highlights
Introduction e EuropeUnion (E.U.) launched a Europe Union-Forest Law Enforcement, Governance and Trade (EU-FLEGT) action plan by improving good forest governance to combat illegal logging and promoting legal timber trade [1, 2]
Methodology survey with focus group discussions, structured interviews, and semistructured interviews to find out the response and opinion of SME’s owner and employee addressed the effect of Sistem Verifikasi Legalitas Kayu (SVLK) in East Java and Central Java, Indonesia. e theory of change (ToC) was used to consider the implications of SVLK implementation on the sustainable livelihood of small and medium enterprises (SME’s). e results of this study showed that SVLK had a more significant impact on livelihoods, as follows
SVLK is a mandatory policy for improving forest governance to address the problem of illegal logging [5, 6]. e E.U. agreed to provide a FLEGT license for Indonesia as the first country in the world for obtaining under the Forest Law Enforcement, International Journal of Forestry Research
Summary
E national of the timber legality assurance system as SVLK products from Indonesia guarantee the E.U. level into promoting legitimate trade, and the VPA discusses improving forest governance and law enforcement [8]. E purpose of this study is to identify and verify the indicators of SVLK implementation, focusing on the expected and unexpected impacts on the livelihood of vulnerable and marginal groups (which includes smallholder forest farmers and producers, middle-man buying from micro and small enterprises, and household artisan supplier of SME’s and labour in small upstream and downstream timber industries). E E.U. and Indonesia agreed to develop social safeguards of VPA implementation on the sustainability of livelihoods in timber-producing forests and small industries [9]. Previous studies in Indonesia (Maryudi and Meyers, 2018), in Ghana (Tegegne, 2014), and Vietnam (Noi, 2014) revealed that many small and medium enterprises and marginalised and vulnerable groups might be affected by VPA. e previous studies indicated that the FLEGT-VPA was unpredicted. erefore, in the FLEGT-VPA, the need to build an IMS of social safeguards against vulnerable and marginalised groups were emphasized [20]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
