Forest Management Public Summary

for
PT Perhutani KPH Lawu

Certification Code: SW-FM/COC-162

(formerly certified under Certificate Number SW-FM/COC-053)
Date of Certification: March 15, 2000
Date of Public Summary: April 2000
Updated to Include the Results of the 2001 and 2002 Annual Audits

This document was produced according to the guidelines of the

Forest Stewardship Council (FSC) and the SmartWood Program.
No part of the report should be published separately.

Certifier:
SmartWood Program1
c/o Rainforest Alliance
65 Bleecker Street, 6th Floor
New York, New York 10012 U.S.A.
TEL: (212) 677-1900 FAX: (212) 677-2187
Email: smartwood@ra.org
Website: www.smartwood.org

SmartWood is implemented worldwide by the nonprofit members of the SmartWood Network. The
Network is coordinated by the Rainforest Alliance, an international nonprofit conservation organization. The
Rainforest Alliance is the legally registered owner of the SmartWood certification mark and label. All uses
of the SmartWood label for promotion must be authorized by SmartWood Network headquarters.
SmartWood certification applies to forest management practices only and does not represent endorsement of
other product qualities (e.g., financial performance to investors, product function, etc.). SmartWood is
accredited by the Forest Stewardship Council (FSC) for the certification of natural forest management, tree
plantations and chain of custody.

INTRODUCTION
The purpose of the SmartWood program is to recognize conscientious land stewardship through independent
evaluation and certification of forestry practices. Forestry operations that attain SmartWood certification
may use the SmartWood and Forest Stewardship Council (FSC) labels for public marketing and advertising.
The FSC is an independent, not-for-profit organization with a diverse membership representing
environmental, business and social interests globally.
This public summary presents the conclusions of an independent assessment of forest management (FM) and
chain of custody (COC) at Lawu DS forest management district of Perum Perhutani (PP), the State Forestry
Corporation, of East Java, Indonesia. Public summaries incorporate assessment conclusions along with the
mandatory conditions and voluntary recommendations of certification. The detailed findings and scoring
results of the assessment team are not published here; these are found in confidential assessment reports only.
SmartWood welcomes public comment regarding the certified operation at any time.
A team of specialists representing the SmartWood Program of the Rainforest Alliance, which is an accredited
certifier of the Forest Stewardship Council (FSC), conducted the assessment. The purpose of the assessment
was to evaluate to what extent Perum Perhutani's district of Lawu DS is managed in an ecologically
responsible, economically viable and socially responsible manner. As discussed in further detail below, the
scope of the assessment is restricted to this district. The findings in relation to this district may or may not
have relevance in terms of other Perum Perhutani districts that may be assessed by SmartWood in the future.
A SmartWood forest management assessment is not an attempt to generate primary research data in a short
amount of time. Rather, assessments must rely on the research and conclusions of existing long-term social,
ecological and silvicultural research in the region, conducted either directly by a candidate forest
management operation (e.g. Perum Perhutani) or other independent parties. In Java, there are a large number
of national and international non-governmental organizations (NGOs) and independent researchers who have
conducted in-depth studies on the dynamics of Perum Perhutani's systems, in some cases for decades. The
assessment team built and designed the certification assessment process on the foundation of this body of
knowledge. They collected the most recent information available from various individuals and institutions
through private interviews, and conducted field work to independently analyze PP management systems
through a review of management plans as well as stratified and random field inspection.
This certification does not cover either FM or COC certification for the headquarters level of PP in Java or
Madura, except as PP headquarters activities relate to this district. As such, it is recognized that there are
findings, conditions and recommendations related to PP headquarters (PP/HQ) level activities in supervising
management in this district and not directly in the control of the district. Specific conditions for
improvements at the PP/HQ level have been identified that must be addressed for the quality of management
in this district to be maintained or improved, since many of the actions occurring at the district level are
determined strictly by PP headquarters policy or other actions. It is expected that future audits and
consultations may identify other conditions for improvements at the district, unit or headquarter levels.
Perum Perhutani is a state-owned forestry enterprise under the authority of the Ministry of Forestry. The
company's mandate is to maximize utilization of forestlands, sustain forest resources and the environment, and
increase the welfare of society, especially those living in and nearby the forest. Twenty percent of the net
profits must go towards rural economic and social development in the areas of operations. The Headquarters
office in Jakarta allocates responsibilities to the three Units (geographically divided as West, Central and
East Java. Each Unit contains dozens of forest management districts (FMDs).
History in relation to Perum Perhutani and SmartWood Certification (1990-Present)
PP has a unique history in terms of SmartWood certification. PP was the first forest management operation
certified by SmartWood (indeed the first certification of its kind) in November 1990, prior to the
establishment of the FSC in 1993. PPs operations were certified by Rainforest Alliance based largely on
the innovative social forestry initiatives taking place with support from various institutions such as Ford

Foundation and universities based in Indonesia, Europe and the U.S.

In 1997, based on concerns raised through SmartWood auditing (in particular in 1995 and 1996),
consultations with stakeholders in Indonesia and elsewhere, and with the FSC, PPs certification by
SmartWood was suspended. The main reasons for the suspension of PPs certification were as follows:

PP performance across different forest management districts was too inconsistent in terms of
silvicultural and social performance. Thus, comprehensive certification of all PP forest management
districts was not viable.
As compared to FSC-approved SmartWood procedures and certification assessment standards, the
assessments (site visits and consultations) conducted at the time of initial certification by SmartWood in
1990 were insufficient. SmartWood senior management decided that more comprehensive and detailed
site-specific sampling of forest management performance had to occur prior to re-certification by
SmartWood.
Given the size of PPs total management area, over 2,000,000 hectares, a district specific approach to
certification would allow SmartWood a more effective/responsive structure for evaluating PP
performance.

As a result of the above, for the foreseeable future, SmartWood certifications of PP will be district-specific.

1
1.1

GENERAL INFORMATION
Name and Contact Information

Company Name: PERUM PERHUTANI

Contact Person:

Hezlisyah Siregar Ir., MFor.Sc., MBA,

Marketing Division
Address: Manggala Wanabakti Building
Block VII FL. 10
Jl. Jend. Gatot Subroto, Senayan
Jakarta Pusat 10270 - INDONESIA
Tel:
(62 21) 572 1282
Fax:
(62 21) 573 2451
E-mail: pasar@perhutani.co.id
http://www.perhutani.co.id

District Evaluated and Contact Information:

KPH Lawu DS
Contact Person: Ir. Mudjiono Budi Santoso , Administrator
Address:
Jl. Rimba Mulyo No. 5, Madiun Telp. (0351) 62463, 62013
1.2

General Background

A. Type of operation
The Lawu DS FMD is managed by Perum Perhutani (PP) Unit II East Java, which is part of the state-owned
forestry corporation under the authority of the Indonesian Ministry of Forestry. The land managed by Perum
Perhutani is state land to which there may be no individual or corporate ownership rights.

B. Years in operation
In its present form, PP as a company was formally established in 1972 (Government
Regulation No.15/1972, revised by Government Regulation No. 36/1986, concerning

Perum Perhutani). As a management unit Lawu DS has been operating since 1928.
At the assessment time, Lawu DS was operating under a ten-year Comprehensive Forest Management Plan
(Rencana Pengaturan Kelestarian Hutan, RPKH), which began in January 1995 and will run until December
2004.

C. Date first certified

This is the first assessment for certification for Lawu DS.

D. Location of certified operation

West of Semarang, north of KPH Magelang, east of KPH Pekalongan Timor, KPH Lawu DS borders the Java
Sea on its entire northern boundary.
1.3

Forest and Management System

A. Forest type and land use history

As per the 1996 Recertification Assessment of Perum Perhutani Management Areas for the Smart Wood
Program, the following narrative applies:
"Originally, most of Java was covered by forest. For thousands of years, the various ethnic groups
of Java have been opening the forests for agriculture, which now supports one of the highest
population densities in the world. Areas with long dry seasons were not well suited to permanent
cultivation, so large areas of natural teak forests existed until exploitation by Dutch colonial
interests began in 1596. For the next several hundred years, teak forests were cut for the
shipbuilding industry, construction material and local uses without deliberate forest regeneration
efforts. At the close of the nineteenth century, reforestation by plantation was begun, and the
colonial government organized management institutions, management areas, and regulations (Peluso
1992).
Studies of forest history at the end of the colonial period (mid 20th century) indicate that during
these times of political upheaval, approximately 500,000 ha of the forested land on Java and
Madura were severely degraded. During the Japanese occupation, Dutch colonial law on land
ownership remained in effect. However, in an effort to double agricultural production to meet wartime needs, Japanese authorities loaned forest land to residents for dry land rice and non-rice crop
farming. Timber exploitation increased to approximately 200 times the previous rate, and the
sustained yield plantation system was abandoned during this period.
Following independence wars with the Dutch and the birth of the Republic of Indonesia in 1945, the
Indonesian government restored the Dutch system of commercial concessions for Java's teak forests,
with some modifications to the land use classification system. In 1963, forest management in
Central Java (Unit I) and East Java (Unit II) was transferred to a state forestry corporation,
Perusahaan Negara Perhutani, whereby each province was managed by an independent Directorate,
and coordinated by a central Advisory Board (Peluso 1992).
In 1972, this was replaced by the present-day state-owned forestry corporation, Perusahaan Umum
Kehutanan Negara (Perum Perhutani, or PP). Plantation management was brought under a single
Directorate in Jakarta, with regional management performed at the provincial (Unit) level. In 1977
the production-zoned forests of West Java (Unit III) were brought under PP management as well
(Simon 1993). Units are further broken down into forest management districts (FMDs).
Beginning in 1958, Lawu DS District was designated to produce softwood pulp fiber and turpentine. Pinus
merkusii junghet de vries (also called tusam) was the chosen pine species. This tree species was chosen

because of its ability to colonize degraded land and to grow rapidly. It characteristically grows well across
many climate types and a wide range of soils. The landscape in the Lawu DS FMD is hilly with areas of
steep slope. Before Perhutani took over the management of the Lawu DS district, there was limited forest
cover and areas where the land had been severely eroded. Pines were chosen for their suitability in
protecting the area from accelerated degradation.
The Lawu forest area contributes to the landscape by providing ecological functions that include watershed
protection, carbon sequestration, mitigation of soil erosion and other ecological functions.
The original pine plantations were planted in mixtures of Rasamala, Puspa, etc. rather than in homogeneous,
single species plantations. Mixed species plantings were preferred in order to reduce soil acidity created
under uniform pine plantings. The multiple crops system was a planting system that would involve rural
people.
In Ponorogo, a pine seed bank was established in 1976 to improve the quality and availability of pine seeds
in order to reach a higher standard of pine plantation productivity.

B. Size of management unit and area (in hectares) of production forest,

conservation, and/or restoration
The total area of FMD Lawu DS is approximately at 51,348.9 hectares. The area of Lawu DS allocated for
production purposes comprises less than a half of the total area. The management units are composed as
below:
Production area
Protected forest
Special purpose land

24.320,7 ha
26.426,4 ha
603,8 ha

C. Regional landscape context

Lawu DS is an area that has traditionally been productive for agriculture due to volcanic activity in the area
and the generally good soil fertility. It is a hilly area and is surrounded by agricultural land with some of the
world's highest rural population densities. Traditionally, the forests have been used by the local populations
to supply fuel, fodder and non-timber products such as medicinal plants and wildlife, as well as providing
timber under the management of governmental agencies over the last several hundred years.

D. Planning Cycle
All districts are managed on a strict planning regime, following ten-year plans which are revised after five
years to take account of any changes in circumstance caused by fire and changing of land use and regional
government planning policy. From this ten-year plan (FCMP), annual work programs are produced. Beyond
the ten year plan there is a strategic twenty-year plan at the Unit level which takes an overview of how the
whole of East Java will meet its supply targets in the long-term. Within this twenty-year plan, Lawu DS
district is considered to have future rather than current production potential, this is based on the current
structure of its different age classes. This strategic plan has little consequence for the day-to-day management
of the district on the ground.

E. Annual allowable cut and/or annual harvest covered by management plan

PP follows an annual cut, based on area, for all its planning. Volumes are calculated from the actual volumes
of the standing timber in the blocks scheduled for cutting in a particular year and so may vary from year to
year as the blocks are harvested. Blocks meeting age criteria for harvest are further scheduled according to
volume of standing timber to meet volume requirements. In addition to the timber produced in the final clear

fell operation, there is a thinning regime based on a systematic approach for the first two thinnings then on
purposive approach.

F. General description of details and objectives of the management plan/system

Silviculturally, Lawu DS follows PP management principles that are formulated in Jakarta headquarters and
conveyed to the Unit and then the district. Detailed plans are handed down through the chain of command and
are followed with little modification. All districts share in this procedure, and it is difficult to differentiate
districts from another in terms of management, philosophy, operations, staffing, planning, etc. Local variation
is more noticeable in terms of social aspects, conservation and geographic differences. Uniformity in
management is created by the rotation of district administrators and other senior staff every three or four
years. This reinforces a very homogenous approach with planners and operation managers taking little
consideration of local conditions.
The basic components of PPs forest management system are sustained yield rotations of plantation species,
community participation in reforestation and forest management, local economic benefits from agricultural
land access and non-timber forest products, and environmental protection. These have been worked out over
a long period, and the results have been carefully documented. The silvicultural system applied by PP for
teak and non-teak forest management, such as pine species, is Clear-Felling and Facilitated Regeneration.
The aim of yield management is to manage harvests such that total yields are more or less consistent over
time. If yields increase, this trend is continued through subsequent harvests.
PPs yield management methodologies are laid out in the company Guidelines for Formulating Forest
Preservation Plans (PP Directive No. 378/Kpts/Dir/1992), which combine considerations of the area felled
and volume felled each year. Efforts are made to ensure that the volume harvested remains constant from one
year to the next.
For its pine improvement program, PP Lawu DS collaborates with the Gajahmada University research
program. They have developed a seed orchard and conducted some research in terms of silviculture and pest
control.
Plantation re-establishment is done through the tumpang sari system, and new plantations are created through
the Social Forestry Program. Conscientious efforts have been made to give greater assistance to the local
population by experimenting with differing configurations and spacing to allow greater agricultural
productivity while maintaining tree crops. The social forestry program aims to increase local community
income while requesting them to maintain main trees. The increased community income is expected to reduce
illegal harvesting. Social forestry activity, however, excludes timber production.
Pine and agathis are tapped to get resin. Local people are involved in the harvest of this resin. Generally,
each head of family is responsible for about seven hundred trees, and they work with all members of the
family. This has made resin extraction an important part of the local economy for the communities
surrounding Lawu DS.
1.4

Environmental and Socioeconomic Context

PP has extensive experience managing teak and other plantation species, utilizing low-impact, labor intensive
technologies. Threats to the sustainability of PP's forests appear to be as much from illegal logging as from
arson and sabotage of reforestation areas by agriculturists who prefer to keep the land open for the growing
of subsistence and market crops (Poffenberger 1998.)
Theft does not pose a serious issue for the Lawu DS. Based on the information presented in Table 1, it is
evident that the level of theft has been relatively stable from 1994 to 1998.

Table 1.

Theft level in Lawu Ds

Year

Number of trees stolen

1994
1995
1996
1997
1998

321
335
370
408
327

Value (based on 1979 fixed

price) in Rupiah
10,760,000
11,235,000
22,782,000
15,325,000
5,849,000

For over a century, the tumpang sari or taungya system allowed local farmers opportunities to plant
agricultural crops between plantation tree seedlings, normally for three years before the canopy began to
close. This system worked effectively to draw in local community members and provide them with
agricultural land. As population densities in the forested tracts of Java increased, particularly after World
War II, in many of Java's forest districts, the areas targeted for reforestation were no longer sufficient to meet
the needs of the growing population of landless agricultural laborers.
In 1984, with support from the Ford Foundation, Perum Perhutani and advisors developed a revised social
forestry strategy that allowed farmers to plant fruit trees within plantation areas, enhance NTFP production,
and gain access to income from thinning operations. The goal of the approach was to allow farmers to have a
long-term stake in the economic future of the plantation and a greater share of benefits. The program also
sought to build forest farmer groups (KTH) so that community forest managers could represent themselves in
negotiations with PP as a group, rather than as individuals, and have a meaningful say in management
planning and decision making. The success of the strategy is indicated by the lower rates of forest arson,
timber smuggling, and violence between community members and PP staff during the first half of the 1990s.
To be successful, the strategy required PP to meaningfully delegate authority to communities in planning and
managing reforestation efforts (Poffenberger 1998). It would be difficult under the current hierarchy of
management for communities to have a genuine influence over decision making. Throughout PP there is an
impression that participation with the local community is limited to informing them of the forest management
plan to be followed. The idea that the local people might actually be involved in the decision making
process for forest management is anathema to the hierarchical structure of the company.
So few of the operational planning processes or decisions are within the control of the KPH that it is hard to
see exactly how a more open and participatory consultation process could be entered into within the present
management structure. Social issues regarding state control of timber resources and forests continue to be
major concerns of many stakeholders.
The general context of forestry activities in Indonesia today can be regarded as quite volatile and
unpredictable. The recent economic downturn and the "reformasi" movement have created an extremely
challenging socioeconomic atmosphere for PP managers in all FMDs and at Unit and HQ levels. One result
has been increased pressure on PP areas in terms of theft, often contracted by outsiders and carried out by
locals.
Though illegal timber trade networks have been operating for as long as the state claimed ownership of all
forest lands in Indonesia (Peluso 1992), times of political destabilization, such as 1998 and 1999, are
characterized by sharp increases in illegal harvesting.
PP has embarked on a series of actions to respond to this difficult management context, including increased
enforcement personnel and guard posts in many areas. There has also been an increased intensity of
discussions about forest management methods that can provide stronger incentives for local villagers to
"invest" themselves in protection of the forest, e.g. production sharing research, improved input of local
people into forest management planning, etc. Though PP/HQ has expressed a clear commitment to a "social
forestry approach" whereby local villagers are joint managers, the reality is that each FMD faces different
challenges and has had different levels of success.

However, illegal harvesting has not yet been resolved. According to Simon (1993), this is because all the
approaches (such as a prosperity approach and the old but still used security approach) are directed at
solving agriculture failure, animal grazing and illegal harvesting, which are considered to be the
consequences rather than the root cause of the problem. High level of unemployment, fuelwood consumption,
and housing wood consumption are endemic and outside the management control.
Currently in Java there are discussions of moving towards collaborative management of production forests
with communities, with varying degrees of land and forest-tenure reform. Ultimately, the forestlands
managed by PP may follow the same path.
From an environmental perspective, pine plantation forests do function as important habitats for various
animal species and diverse plant communities that have acclimatized over the hundreds of years that the
forest has existed and been manipulated. The plantations are referred to by local people as forests, not
industrial plantations. They do serve very important forest functions in the wider sense in terms of watershed
management, carbon sequestration and as havens for fauna in the increasing intensively managed wider
environment, where they are like islands in a sea of rice paddy. Some of the animal species are endangered
and on CITES, (peacock, lutung monkey, panthera pardus, gallus gallus, barking deer). In this respect the
forest management regime could be said to have a neutral or passive approach to these populations.
During the assessment period, PP was setting up a Forest Resources Conservation sub division under the
Forest Resources Management Division, with similar subdivisions planned for Unit and district
implementation later in the year. This should lead to a more proactive approach to the management of all PP
forests, especially areas outside the production management. This increased level of concern is also being
encouraged by the increasing realization that PP forest areas are potential tourist designations.
Of considerable importance are the human populations that are continuing to grow and increase pressure on
the forest through grazing, fuel wood collection, hunting, non-timber forest product collection, and the desire
for longer term use of pine plantation areas for agricultural crops.
1.5

Products Produced

A. Species and products

The dominant commercial timber species produced from Lawu DS districts is pine. To a lesser extent (about
ten percent of production) there is management of mahogany. Other commercial species produced in minor
areas (about 15 hectares per year) include Albizia (Parasirianthes spp.) and Sonokeling (Dalbergia
latifolia). Lawu DS also produces turpentine and Gondorukem from the pine resin at their processing unit.

B. Actual (and potential) annual volumes produced

Table 2. Annual harvest of Pine Produced from Lawu DS district:

YEAR

Total Production
(m3)

1995
1996
1997
1998
1999 est.
2000 est.
2001 est.
2002 est.

48.750
64.570
74.280
42.970
45.890
31.840
21.460
27.900

Harvest area (ha)

Excludes thinning
170
198,6
489
306,6
154,2
118,2
79,65
101,8

C. Description of current and future production/processing capacity and plans

Lawu DS does not have a processing unit for the logs produced.

D. Reference stable sources of product

PP tries to distribute age classes so that the yield harvested each year will be of the same quantity. From the
age class distribution table below it is projected that wood production from Lawu DS district in the future
will provide a stable source of wood. The pine management is based on five-year age-class distributions.

Pine Management Class

Area (Ha)

Age Class I

1.187,1

Age Class II

887,6

Age Class III

263,3

Age Class IV

960,3

Age Class V

2.765,2

Age Class VI

803,4

Age Class VII

274,3

Age Class VIII

Ready to be harvested

1661,1

Not productive area

Not for clear cutting
Total

5,4
3.638,9
13.5181,1
24.469,7

Based on the composition of standing stocks listed above, PP believes it has production stability and a
reliable production cycle.
1.6

Chain of Custody Certification

A. Products Covered by Chain of Custody Certificate

Logs of all plantation species harvested from Lawu DS.

B. Approximate Annual Quantity of Products

See harvest projections, section 1.5b.

C. Chain of Custody Code for Lawu district

The certification registration code for all PP districts (SW-FM-COC-053) will be used for logs from KPH
Lawu DS.

CERTIFICATION ASSESSMENT PROCESS

2.1

Assessment Dates

District-specific field review by assessment team -March 8 to April 2, 1999

Stakeholder consultation: March and April, 1999
Draft report preparation - April to August, 1999
SmartWood Headquarters Review - August 15, 1999 to September 20, 1999
Peer Review and Discussions December 20, 1999 to January 15, 2000
Certification Decision February, 2000
Finalization of Certification Agreement and Contract Signing
As described in further detail below, this intensive fieldwork was preceded by numerous, multi-person
assessment team visits by SmartWood assessors each year from 1995 through 1998. Of particular
importance was the 1996 Recertification Assessment of Perum Perhutani Management Areas for the
SmartWood Program. Meetings with 30 Indonesian and International NGOs and other stakeholders were
conducted at this time by SmartWood representatives. This work was crucial in establishing a strong base of
information on PP activities in terms of field performance and supporting documentation. There was no
specific scoping exercise carried out within the forest management unit of Lawu DS Forest Management
District (FMD) or with its staff. The assessment of Lawu DS evaluated here was built on past research and
included extensive stakeholder consultation before, during, and after field assessments.
2.2

Assessment Team and Peer Reviewers

The following team members participated in the field assessment:

Bill Maynard:
Nawa Irianto:
Dwi Rahmad Muhtaman:
Jalal:

Team Leader
Forest management and planning Specialist
Social/policy Scientist
Social Scientist

Two independent, international peer reviewers with 20 years + experience in social science and ecological
science were used to conduct the confidential peer review of KPH Lawu DS.
2.3

Assessment Process

A public stakeholder consultation document was distributed by email, fax and hand delivery to all known
stakeholders, including over 40 international, national, regional and local organizations concerned with or
affected by Perum Perhutani forest management. The purpose of this document was to request public
feedback on the PP activities. Environmental, social welfare and community-based natural resource
management organizations were contacted, as well as foundations and regional universities.
Specifically, the team contacted the Legal Aid Foundation in Semarang and Surabaya; various local NGOs;
experts from the Forestry School of Gadjah Mada University (UGM); some local Islamic boarding schools;
and Forum Komunikasi Kehutanan Masyarakat (FKKM). In addition, the team invited more than seventy
stakeholders during the public meeting held in Jogjakarta Central Jawa), Madiun (East Jawa), and Bogor
(West Jawa).
A half-day meeting at the Unit I headquarters for Kesatuan Pemangkuan Hutan/Forest Management District
(KPH/FMD) managers was conducted in November, 1998, in which copies of the Forest Stewardship
Council's Principles and Criteria, and the SmartWood conditions for certification were reviewed. This
meeting also reviewed the assessment process for the Unit and district officials.

A three-day, on-site field inspection was conducted in Lawu district. SmartWood assessors chose site visit
locations within each district. Interviews with community members and other local stakeholders were
conducted independent of Perum Perhutani staff or government agents.
The first day in the field was spent meeting with district personnel at district headquarters. This included the
district administrator and managers from all the sections of the management organization. Data was collected
and discussed with the staff, and the management documents were reviewed (ten-year work plan, five year
supplemental work plan, annual work plan, and quarter-year reports).
The second and third days were devoted to field visits in the district. Assessors visited field areas
associated with their assessment responsibilities. Visits were made to forest locations to examine all phases
of the forestry operation from newly established plantations to logging operations. The social scientists
visited several villages in Lawu district to discuss stakeholder issues with local people.
Stakeholder meetings were conducted for national, regional and local level participation during the
assessment period. The local level meeting was not held in Lawu; rather, it was conducted involving more
than 100 local community members in three meetings held on May 10-11 in nearby Ngawi, Central Java.
2.4

Guidelines

These assessments were conducted using the SmartWood Generic Guidelines for Assessing Forest
Management (April 1998) and the associated "SmartWood Addendum on Tree Plantation Certification and
Forest Conservation". All criteria and guidelines used have been endorsed by the FSC.
SmartWood is currently collaborating with the Lembaga Ekolabel Indonesia (LEI) in the development of the
LEI certification system and LEI plantation guidelines. Based on the Memorandum of Understanding between
LEI-FSC, September 3, 1999, certification in natural forest concessions is to be done under the aegis of a
Joint Certification Protocol. The full implications of this process are not yet clear. Eventually, according to
discussions with LEI, LEI standards will be submitted to the FSC for a process of mutual recognition. If the
LEI standards are mutually recognized by the FSC, it will be necessary to ensure that certified PP districts
also satisfy LEI standards through the annual auditing process.

3
3.1

RESULTS, CONCLUSIONS AND RECOMMENDATIONS

General Certification Findings

Over the last few years there has been a strong effort by the PP headquarters administration in Jakarta to
modify their "top down" management structure and to grant autonomy at the Unit and District (FMD) levels.
However, it would be premature to view headquarters as having brought in reform and autonomy until it this
has been implemented at the district level. The reality is that there have been almost no changes as of yet. It
will take a lot of effort and time for the good will of HQ to be realized. However, this is a notable trend, and
the certification assessment team hopes that the trend will continue on down to the ground level. Further
discussion about this trend, and the potential implications in terms of the "reformasi" movement in Indonesia
are provided below.
In January 1999, PP headquarters formed "Tim Reformasi" in order to speed up internal reforms. Tim
Reformasi includes representatives from governmental bodies, universities, research institutions, nongovernmental organizations, and networks. Through intensive discussion conducted at least once a month, PP
plans to come up with a new corporate vision and mission statement. This new draft vision statement reads
as follows: "managing forest resources as the best ecosystem in Indonesia for ensuring functional
sustainability, and utilized in a way that is fair, democratic, professional, and efficient for people's
prosperity." The mission is to sustain and improve quality of forest resources and the environment; to carry
out quality forest business for the benefits of public; to manage the forest ecosystem in a participatory fashion
with a local focus in order to obtain optimal benefit for corporation and community; and to empower human
resources for prosperity and self-reliance.
Although the progress towards what some of the members hope for seems slow (such as providing more
rights for local to own land or production sharing of timber), PP has put the structures in place to tackle
challenging reform mandates for change at the directorate level. Notwithstanding, the assessment team was
unable to identify much evidence of this in Lawu.

A. Commitment to FSC Principles and Legal Requirements

Most of the Lawu DS staff knew of SmartWood team's arrival in the District KPH Lawu DS. However, when
asked to comment on their understanding of FSC certification, how it works, or what the FSC principles are,
they did not have much awareness. It might be that access to such information is very limited, and those who
understand do not share the information properly with others. Transfer of information from KPH
Administrators to field staff is still minimal.
Nevertheless, enthusiasm among field staff to provide any information the team needed was very high. The
KPH staff was open to sharing any data and information regarding what they had been doing and what had
been going on. At the first formal meeting, though, they did not have much to say nor did they raise questions.
However, during the data collection they were more willing to share information and ask questions.
PP/HQ in Jakarta agrees with the FSC principles and has distributed FSC Principles and Criteria in both
English and Indonesian languages to all district managers and headquarters administrators. To their credit,
PP has prepared an internal publication from a translation of the ITTO Guidelines on the Conservation of
Biological Diversity in Tropical Production Forests, which was important in the development of the FSC
Principles and Criteria. In addition, PP Unit I has published and distributed some key national policy
documents such as the Government Act No. 5/1990 on the Biological Diversity and its Ecosystem, and
Presidential Decree No. 32/1990 on Protected Areas.
While the local level workers may not understand all the ramifications of the FSC initiative, i.e., the issue
and terminology of biodiversity, the FMDs, Unit I and PP/HQ administrators are committed to increasing the
understanding of the program and implementing reforms in the field.

B. Land Tenure and Use Rights and Responsibilities

Lawu DS FMD has been settling land tenure issues with the local community. The local community
understands and knows about the boundary between them. The local community is allowed to access the
forest for their traditional resource utilization such as non-timber forest products. Some community members,
usually from the lowest economic level, are involved in KTH program.
The Lawu DS FMD has a long history of management of the pine forests. The FMD is dedicated to long-term
management of timber and is making an effort to bring the production to a sustainable condition in spite of
some past over-harvesting and deficiencies in restocking. They have maintained relatively good community
relations with the surrounding areas and are making efforts to improve that relationship.
Historically, the KPHs have done a generally good job balancing security and access to the forests, yet they
are often caught between these two. In the intensively used Javanese forest landscape, it is difficult to
balance conflicting directives related to securing the forest while at the same time allowing additional
community access to the resource. This conflict became more common during the monetary crisis and
subsequent political turmoil, which increased the incidence of timber theft. In the past, uniformed, and
sometimes armed, PP forestry officers provided forest security.
SmartWood recognizes that accidents happen and tempers can flare in law enforcement situations. However,
it is necessary to devise a publicly accepted and consistent method of handling and reporting conflict
situations. One condition of certification requires that a third-party analysis be conducted and a report sent to
SmartWood regarding all incidents resulting in serious injury or death during a security violation. Depending
on the results of the investigations, certification of the FMD may be suspended or withdrawn. Where conflicts
occur, continued and concerted efforts are needed to balance the needs of the local populations with those of
the forest industry without jeopardizing the environment or the economy. This has been the intent of the
social forestry activities that PP is currently implementing.

C. Forest Management Planning and Monitoring

The Lawu DS FMD is dedicated to pine production. The Unit II planning section in Malang develops the
management plan, which is agreed to and signed by HQ in Jakarta. The FMD has no rights to develop the
plan. HQ determines the format and standard of the planning document. Planning documents emphasize the
importance for forest management to maximize timber and non-timber (pine resin) forest products.
Management planning and monitoring is uniform and systematic within all levels of PP operations. Detailed
records are kept and, with the availability of computers, are becoming more useful and available for making
management decisions based on historical performance and realistic predictions.
In general, the management of forests on Java has been going on for centuries. Management has taken an
approach that tends to separate timber production from other functions of the forest. PP has been working to
improve the social aspects of its planning for the last ten years. PP has only recently begun to incorporate
more aggressive planning for biological conservation for its forest management areas. Additional provisions
must be made to incorporate, in planning and monitoring, more local input and more conservation concerns
than have been done in the past. Sustained yield is still a major challenge. Although the FMDs are moving
forward in finding answers and establishing better control, efforts must be strengthened and results monitored
more frequently to ensure that progress is being made.

D. Forest Management Practices

The Lawu DS FMD is located in a mountanous area that is suited for pine production. PP has experience in
pine and resin management. In harvesting resin, PP involves the local community, which benefits the
community with an additional source of income. PP has made efforts to prevent soil erosion, which would be

a primary concern for clear-felling on steep slopes. The soil conservation measure most widely adopted is
the terrace system which is implemented at every planting.
Forest management practices are labor intensive to a degree virtually unknown on other commercial
operations in Indonesia or elsewhere. During pine harvests, the logs are skidded by hand between two men
and then loaded onto small trucks. Since no mechanized skidding currently occurs, the site damage is
minimal.
Forest management must take a more holistic approach, especially in terms of conservation in high-risk areas.
Field observations indicated that riparian corridors along permanently flowing streams were not given
consistent attention.

E. Environmental impacts and biological conservation

A major portion of the Lawu DS area is for protected forest and natural reserve areas. Hydrological
protection is accentuated in this region, as it is well understood that the Mt. Lawu watershed is the starting
point for most rivers in Central Java and an important source of spring water. Wildlife diversity in Lawu DS
is also high and unique, and area is allocated as natural reserve.
The protected areas, such as swamp forests, watersheds, coastal areas, riverside, lakes/dams and water
sources, are protected under national laws and by PP regulations. Threatened, rare, endemic or endangered
species are protected under Indonesian laws, and hunting in Perum Perhutani forest is forbidden for those
species.
Lawu DS Forest Management District seeks to protect steep slopes that are sensitive to landslide. On slopes
greater than thirty-five percent, the management unit does not permit harvesting. PP has allocated 114 ha of
production forest for buffer zone within a natural reserve area (Gunung Selok).
Activities supporting conservation of animal species are still limited to inventory of wild animals, control of
hunting, and research conducted by parties other than Perum Perhutani.
Landscape-based ecosystem conservation or wildlife corridor concepts are not yet well known here, though
PP is now attempting to address these issues. Baseline data on biodiversity is needed in a landscape context
where human use pressures continue to seriously undermine biodiversity.
Finally, PP restricts fertilizer and seed use to company-supplied stocks. Fertilizers may be more beneficial
for soil structure if organic materials are included in the mixture.

F. Community and Worker Relations

PP provides agricultural supplies for cultivating areas between trees. Local people are given certain access
to the forest to graze animals and collect firewood and other non-timber forest products. Disputes are
handled systematically, and assistance is given to the local villages for infrastructure, such as roads, bridges
and water catchments. Assistance is based on the needs of villagers in a specific area. Employees of the
FMD enjoy government worker status, and the contract labor force is generally paid at a higher-thanprevailing wage.
Involvement of the local people in FMD planning procedures is not consistent, though their involvement is
officially required. The Lawu DS applies Rapid Rural Appraisal approach to get ideas of local community
needs and social and economic situation. Those who form farmer organizations (KTH) or become tumpang
sari participants are required to submit a proposal. This proposal, if accepted, will usually be planned and
implemented within two years.
PP recognizes the dependence of local people on agriculture as well as forest resources. Lawu DS is
committed to cooperating with local people through the practice of tumpang sari, allowing farmers to grow

food crops in areas undergoing replanting, and social forestry activities, which allow for inter-cropping of
non-food crops, such as fuelwood and fodder. Such programs are implemented with farmer organizations.
Involvement of the local people in the FMD planning procedures is not consistent, though their involvement is
officially required. There could be better performance in terms of consistent communication with the local
people regarding ongoing forest operations. Worker safety is a stated concern in forestry operations, yet the
FMDs do not consistently enforce the use of safety equipment by all field workers.
PP has allowed workers to organize, but so far only upper-level employees have any type of worker
organization for their interests.

G. Benefits from the Forest and Economic Viability

The Lawu DS district is a major participant in the economy of the hill and mountain areas around Lawu. As
mentioned, villages surrounding Lawu DS benefit from use of the forest to graze livestock, collect firewood,
and for other forest products. In the production of timber, Lawu DS provides lumber for the domestic
manufacturing and construction industries. Sawdust from mills is frequently used as fuel, and scraps are
donated for local crafts production, so utilization is relatively high. An additional contribution to the local
economy comes from the processing of pine resin to make turpentine, floor wax, and other polymers. The
occurrence of timber theft is relatively low for Lawu DS as compared to teak producing districts.
3.2

Certification Decision

SmartWood has decided to award certification with the following conditions to the Lawu DS Forest
Management District of Perum Perhutani based on agreement to meet the stated conditions to certification.
Conditions are verifiable actions that will form part of the certification agreement that the district under
evaluation will be expected to fulfill by the time of the first audit or as required in the condition. Each
condition has an explicit time period for completion. Non-compliance with conditions will lead to the
suspension or cancellation of certification.
3.3

Conditions for the Certification of Lawu DS Forest Management District of Perum Perhutani:

Condition 1: Within year 1, PP will conduct orientation workshops in each Unit for all senior
staff of Units and certified Forest Management Districts regarding the FSC and
SmartWood assessment and auditing processes, the FSC Principles & Criteria,
the SmartWood guidelines, and the conditions for certification. In future audits,
SmartWood auditors will review the progress of PP/HQ's internal assessment of
compliance with FSC Principles and Criteria throughout PP operations. At
annual audits, a timetable for this educational program and an outline of its
contents must be submitted to SmartWood. (Criterion 1.1)
Condition 2: Before each annual audit and beginning year 1, Perum Perhutani must hold a
certification workshop at KPH Lawu DS, that includes FSC and SmartWood
requirements and procedures and a review of the KPHs certification or audit
report and responsibilities. KPH staff, including Asper (Head of
Subdistrict/BKPH) and Mantri (Head of Sub Subdistrict/RPH), must attend the
workshop at the KPH. The KPH administrator, Unit administrators and
certification managers and Perum Perhutani Headquarters certification
managers must attend the Unit workshop.
Condition 3: Within year 1, KPH Lawu DS must assign one or more staff responsible for
certification implementation and as a certification specialist.

Condition 4: By year 1, the personnel department must keep records to demonstrate that key
forestry staff have the necessary qualifications and practical experience to carry
out their work. (Criterion 1.2)
Condition 5: By the end of year of 1, PP must contract an independent, third-party study,
acceptable to SmartWood, on the appropriateness of the armed responses to
suspected timber theft. The use of large-scale security operations with the army
and police must be reviewed. This review should also include a debate within
PP regarding the use and carrying of firearms by any PP staff. (Criterion 1.3)
Condition 6: By the end of year 2, PP/HQ must develop and implement an effective approach
to reduce illegal harvesting. (Criterion 1.4b)
Condition 7: By the end of year 1, FMD Lawu DS shall have resolved the outstanding land
tenure disputes. Resolutions of land dispute should be documented in written
materials and reported at the next audit by SmartWood. (Criterion 2.1)
Condition 8: At any time during the five-year certification period, if there is a major incident of
security violation on PP lands which results in the serious or fatal injury of any
person, then the following MUST occur: 1) SmartWood or LATIN are informed
in writing by PP of the incident within 7 days of its occurrence; 2) SmartWood
or LATIN will be brought on-site (at PPs expense) to verify the incident, attain
Police Reports or Court Reports, and meet with local stakeholders; 3) If there
were serious injuries, PP will provide to SmartWood or Latin chronological
reports of the incident;4) PP must prepare and maintain KPH level security
records on each incident, and provide them to SmartWood auditors during
annual or random audits.
Condition 9: Throughout the certification period, Perum Perhutani must ensure that a third
party investigative analysis is conducted by a designated consultant for all
major security violations, i.e. anyone is seriously injured on Perum Perhutani
lands. Reports on each occurrence must be maintained in the KPH security
records and provided to SmartWood auditors during annual or random audits.
Follow up reports must be done regarding compensation to injured parties or
other legal processes. All major incidents from the date of certification must be
documented and these reports made available for inspection at the next audit.
Condition 10: PP must present an annual report that demonstrates the efforts that were taken
by PP to anticipate and prevent conflicts, regarding the resolution of past
conflicts, and/or description of compensation to injured parties. (Criterion 2.4)
Condition 11: By the end of year 1, KPH Lawu DS must provide and maintain for
security/field officers with adequate quantity of communication and mobility
equipment, including the running and maintenance facilities necessary to
respond effectively to any incidents in the field. (Criterion 2.4)
Condition 12: By the end of year 2, in coordination with PP/HQ, Lawu must design and begin
to implement a more proactive educational and enforcement program for
control of hunting and trapping by outsiders as well as locals. (Criterion 2.5)
Condition 13: Throughout the certification period, actual volumes of theft shall be recorded
and reported internally in order to develop a targeted system for theft control at
the district level. Data of theft volume and theft control budgets shall be made
available for SmartWood annual audits. These data should be used by PP to

revise their overall approach to illegal harvesting. Minutes of any meetings to

discuss the issue shall be kept and made available to auditors. Throughout the
certification period, KPH Lawu DS must supply SmartWood with verifiable data
on the volume and value (at current market rates) of theft on a quarterly basis
(April 30, July 31, October 31,2000 and January 31, 2001).
Condition 14: By the end of year 1, KPH Lawu DS field staff must receive training in
participatory program planning, participatory rural appraisal etc. Training
must be facilitated by an organization that is well-versed in participatory
training.
Condition 15: By the end of year 2 of certification, PP/HQ and certified FMDs shall
incorporate into the management plans more details of the formal process for
local consultation and public feedback as a mechanism to solve any dispute with
local communities, including land disputes or illegal harvesting. PP responses
to feedback must be documented for certification audits at FMD and HQ levels.
HQ and FMD-level planning should more effectively reflect the results of this
consultative process. (Criterion 3.2)
Condition 16: By the end of Year 2, PP will have begun a transition of reform that will allow
each district (KPH) the ability to develop annual, site-specific plans according to
recent changes or district-specific conditions. (Criterion 3.2)
Condition 17: PP must complete the ongoing re-evaluations which compare current cutting
cycles with future yield projections. Re-evaluation should include a continual
process of adjustment, balancing ecological, community and financial concerns.
At each audit, certified FMDs must produce an annual report on progress in
this regard, which will be reviewed by SmartWood auditors. (Criterion 3.3)
Condition 18: By the end of year 2, Lawu DS FMD will have conducted a survey of naturallyoccurring (not planted) NTFPs, including medicinal plants, and will have
prepared a specific NTFP management plan and start implementing it by year
3.. (Criterion 3.5)
Condition 19: By the end of year 1, PP must have aerial photos and topographical maps of a
scale adequate in accordance with government or national security regulations,
for use in the field and which are available at the BKPH. (Criterion 3.7)
Condition 20: By year 2, PP shall develop written guidance and training for field staff that
focuses on conservation of biological diversity and environmental management
(watercourses, wildlife, soil conservation, etc.)
Condition 21: Throughout the certification period, at each annual audit, SmartWood will
convene a broadly-representative oversight committee composed of independent,
non-governmental parties. This committee will monitor and discuss PP
improvements and problems in relation to forest management policies and
practices at Headquarters, Units, and certified FMDs. The committee shall
also provide input to SmartWood regarding PP compliance to the conditions of
certification and FSC Principles and Criteria. This committee should include
representatives from each of the following groups: forestry professionals,
agroforestry/social forestry professionals, environmental NGOs, social welfare
NGOs, and local people's organizations. Though the group will not have
decision-making or auditing authority over PP, it shall report to PP and

SmartWood any publicly noted violation of the certification conditions or

national laws. Public feedback of PP management should be directed to to
SmartWood and PP and records should be presented by PP in the next annual
audit. (Criterion 3.10)
Condition 22: By year 3, Lawu DS will have developed a basic monitoring system to determine
the impact on water and soil quality as a result of pine management on steep
slopes. (Criterion 3.10)
Condition 23: By the end of year 3, Lawu DS FMD shall define how management planning
will respond to changing economic conditions. Data collection and analysis
should include the evaluation of PMDH participants and related businesses.
(Criterion 3.11)
Condition 24: By the end of year 2, PP must develop a plan and start implementing it for
improving the quality of forest road construction and maintenance. The goal for
the main roads within the FMD area should be to ensure road access and use
in both the wet and dry seasons.
Condition 25: By the end of Year 1, FMD staff at certified districts must demonstrate more
commitment on the ground to environmental guidelines for river and stream
protection. Designated riparian buffer areas with no timber harvesting must be
clearly marked in the field, and field level maps must clearly show areas that
are no-harvest riparian buffers zones. A greater diversity of native tree species
should be encouraged in these no-harvest zones. (Criterion 4.12)
Condition 26: By the end of year 3, Lawu, in consultation with experts, shall develop and
implement a systematic approach for monitoring ecosystem functions on a
stand and landscape level. (Criterion 5.1)
Condition 27: By the end of year 2, Lawu shall develop and present an overall strategy for
improving biological conservation. The next forest management plan shall state
how this strategy is to be implemented. (Criterion 5.2)
Condition 28: PP shall develop a policy on the use of genetically modified organisms, that is
consistent with FSC Principles and Criteria. (Criterion 5.10)
Condition 29: PP/HQ shall create an explicit protocol detailing the circumstances in which
chemicals can be used, how they should be stored and handled, and listing the
chemicals acceptable to PP which criteria 5.12.
Condition 30: All personnel who handle chemicals shall be trained in the safe handling and
use of chemicals before they are expected to use them.
Condition 31: During year 1, Lawu shall use and document a participatory approach for
planning and evaluation of community related programs. Strategies to deal with
both activities shall be integrated into the management plan. (Criterion 6.1)
Condition 32: Throughout the certification period Lawu DS FMD shall collect data on local
organizations and community involvement in forest management, and update
this data as part of the planning process. (Criterion 6.2)
Condition 33: During Year 1, KPH Lawu DS must develop a written policy defining a formal,
efficient and consistent procedure for informing local people about forestry
activities which are taking place in each subdistrict, particularly harvesting.

The policy should clearly identify who within the FMD administration is
responsible for informing local people, how this will take place and how
conflicts will be resolved, if they arise, with an emphasis on anticipating
problems and addressing them before they happen. In consultation with local
community leaders develop a plan/strategy for informing local communities.
Make the plan available to community leaders and stakeholders involved in the
consultation process.
Condition 34: By year 2, Perum Perhutani shall develop a clear set of criteria for deciding who
has access to local forest lands and programs which are made available as part
of Perum Perhutani social forestry and local economic development programs.
Make those criteria transparent to the community by making them easily
available by distributing them widely throughout the area. Participant selection
criteria should be developed in consultation with both village leaders and village
residents.
Condition 35: By the end of Year 1, PP/HQ will have a consistent strategy in place to ensure
that PP workers and contractors follow safety procedures. Such a strategy
should include positive incentives for safety and stronger safety enforcement.
(Criterion 6.10)
Condition 36: By the end of the first year, Perum Perhutani must develop a compensation
policy for workplace injury to contract and periodic workers (e.g. day workers,
etc). The policy must provide specific levels of compensation and state the
terms of such compensation. Workers must be provided with copies of this
policy at the time they are engaged by Perum Perhutani.
Condition 37: By the end of year 1, Perum Perhutani/HQ shall adopt and distribute a formal
written policy allowing its employees, including freelance laborers, to organize
and negotiate with their employers as they choose, as per national laws and the
International Labor Organization.
Condition 38: Prior to selling any logs as certified, Lawu DS must resume the practice of
stamping each log with a mark that identifies the district of origin and can be
easily acknowledged. (Criterion 8.1)
Condition 39: Throughout the certification period, PP/HQ and Lawu DS must ensure that
Lawu DS FMD implements SmartWood and FSC-approved Chain of Custody
procedures in terms of product labeling and tracking.
Recommendations
The assessment team suggested twenty voluntary actions that are not mandated or required for the
certification, but would lead to improved forest management systems and performance.

REFERENCES CITED
Peluso, Nancy. 1992. Rich Forests, Poor People: Resource Control and Resistance in Java. University of
California Press, Berkeley, California.
Poffenberger, Mark. 1998. Confidential Peer Review to SmartWood Assessment of Cepu, Kebonharjo and
Mantingan Forest Management Districts.

Simon, Hasanu. 1993. Hutan Jati di Kemakmuran [Teak Forests and Prosperity]. Adity Media Publishers,
Yogyakarta, Indonesia.
SmartWood, 1996. Recertification Assessment of Perum Perhutani Management Areas for the SmartWood
Program.

SmartWood Certification Annual Addendum to the Public Summary for PT

Perhutani KPH Lawu, 2001.
1. PUBLIC SUMMARY INFORMATION

1.0 Audit

Process

A.
B.

Audit year:
2001
Dates of Audit: 9-22 April 2001

C.

Audit Team:
Walter Smith, Team Leader, and Forest Practices Specialist - Mr.
Smith has seventeen years experience in logging, training and forest
resource management and ten years experience in FSC forest management
and chain of custody certification. He is a founding member of the Forest
Stewardship Council. He has served on a number of government forestry
policy boards. Mr. Smith is the U.S. Western Regional Manager of
SmartWood. He has worked in Canada, China, Honduras, Indonesia,
Japan, Malaysia, Philippines, United States and Vietnam.
Dwi Rahmad Muhtaman, Social Scientist, MPA (Auburn University,
Alabama, USA). Nine years experience in forestry and biodiversity policy
development, and as a social assessor for forestry and chain of custody
certification. Lead author of a book on Criteria and Indicator for
Sustainable Plantation Forestry in Indonesia (published by CIFORACIAR, 2000). Founding member of the Indonesian Tropical Institute
(Lembaga Alam Tropika Indonesia/LATIN). Current position in LATIN
as Director of Certification and Consultation Division, and coordinator for
SmartWood-LATIN Initiative; SW international collaborator in Indonesia.
Semiarto Aji Purwanto, Social Scientist MA. and BA in Anthropology,
Univ. of Indonesia, Jakarta; Department of Anthropology. 7 years in socio-

cultural research, consultancy, and project management. Experience in

agriculture, forestry, community health, and community development in
Kalimantan, Sulawesi, Sumatra, Irian Jaya and Java. Certification work
includes: 3 forest management assessments, scoping evaluations and
audits under FSC guidelines; 2 assessments under LEI system; and 12
assessments under APHI system.
Marc Hiller, Technical Writer, BA Political Science and Human and
Natural Ecology, Emory University, Atlanta, Georgia, USA. Mr. Hiller has
worked for two and a half years in West Kalimantan, Indonesia as a
community forester for a community-based forest management project.
His work has focused on training communities to conduct applied forestry
and monitoring research, harvest planning, mapping, and illegal logging
systems.
D. Audit Overview:This is the first annual audit for PP KPH Lawu. The
district was certified in March 2000. The audit was conducted in coordination
with on-site evaluations to four other certified districts in Central and East
Java. There were 24 conditions that were audited at this time. Therefore, the
team focused its auditing on year 1 conditions Those conditions applicable for
other years will be evaluated by auditors in subsequent year's annual audits.
The audit began with a meeting at the KPH.
E. Sites Visited:

BKPH Ponorogo Barat;

BKPH Ponorogo Timur;
Desa Krebet,
Desa Watubonang
Desa Karanggupito
Desa Ngrayudan
Desa Sarangan
Desa Dayakan,
RPH Watu Bonang;
TPK Gelongong
Pine Forest Felling Location
Lawu Central Nursery
Gunung Palung Conservation Project

F. Personnel Interviewed:
The following people were consulted during this audit:

Person interviewed
Rizal
Mr. Baiman
Mr. Supono
Menteri
Dahono Irianto
Suparno
Diono
Kenthil
Gunawan
Suhadi
Johan Suryo Putro
Rahmadi
Wahyudi
Syahroni
Sutaji, Kabul, Parji, Trimo, and Katemun

Position/Organization
Unit II, Surabaya
Head of TPK Gelongong, KPH Lawu
Asper, KPH Lawu
KPH Lawu Central Nursery
Administrator caretaker
PLPS (Petugas Lapangan Perhutanan
Sosial), Ponorogo Barat area and Wilis
Selatan
PLPS, Ponorogo Timur
PLPS and Temporare Suplap
Mandor tanam
KRPH
Asper Pacitan
Mantri Karang Patikan
Mandor
Head of Cooperative Wana Lestari
Farmers

G. Documents Used:

Himpunan Data Manajemen Hutan Lestari KPH Lawu DS., Tahun 2001
Target dan Realisasi Penghasilan Periode Desember 2000 Desember
2003
Laporan Realisasi Penjualan dengan Perjanjian/Alokasi hingga Maret 2001
Laporan Realisasi Penjualan Langsung hingga Maret 2001
Laporan Realisasi Penjualan Lelang Besar hingga Desember 1996
Laporan Realisasi Penjualan Lelang Kecil hingga Desember 1996
Rekapitulasi Gangguan Keamanan Hutan dari Desember 1997 hingga
triwulan pertama tahun 2001
Pengamatan Anggaran dari Desember 1996 hingga 31 Maret 2001
Peraturan Pemerintah Republik Indonesia No.83/2000 tentang
penyelenggaraan Program Jaminan Sosial Tenaga Kerja
Keputusan Direksi Perum Perhutani No. 277/Kpts/Dir/2000 tentang
jaminan perlindungan bagi pekerja Perum Perhutani
Data kuitansi pembayaran premi asuransi bagi karyawan Perum Perhutani
hingga Januari 2001
Data Umum KPH Lawu Ds untuk RPKH periode 1994-2003
Daftar Perbandingan Klas Hutan Produktif selama 4 jangka
Rencana dan Realisasi Produksi Getah Pinus per BKPH dalam periode
1997 Desember 2000
Pengamatan Pemeliharaan hutan selama 5 tahun terakhir (1996-2000)
Laporan perkembangan tanaman selama 5 tahun terakhir (1996-2000)

2.0

PUBLIC SUMMARY INFORMATION

Perum Perhutani is a state-owned forestry corporation in Java, Indonesia. Perum

Perhutani operates in Indonesia under the authority of the Ministry of Forests and
manages nearly two million hectares of teak, pine and mahogany plantations. There are
currently five districts certified under the same FSC/ SmartWood certification code
number, however, Perum Perhutani is certified, and audited, on a district-by-district basis,
therefore, the maintenance of each districts certified status is based on their own ability
to meet the SmartWood guidelines.
In December 1999, a SmartWood audit team reviewed Perum Perhutanis performance in
meeting their 1998-certification conditions in the Mantingan, Kebonharjo and Cepu
districts. The team found that there were a number of the 1998-certification conditions
that Perum Perhutani had not been able to meet. In February 2000, Perum Perhutani was
presented with the audit report that specified time-sensitive Corrective Action Requests
(CARs) that required Perum Perhutani to achieve satisfactory compliance to the
conditions. The first set of CARs for those districts was audited in June 2000, resulting in
the suspension of the Mantingan district, effective September 2000. The recent April
2001 audit assessed whether Cepu and Kebonharjo have met the remaining and/or
ongoing CARs and conditions scheduled to be completed in the second year after the
issuance of their certificate. In March 2000 the Perum Perhutani districts of Kendal,
Lawu and Madiun were certified. The April 2001 audit is the first annual audit for those
districts.
The findings of the April 2001 audit reveal that the overall performance of Perum
Perhutani districts to meet their conditions and CARs lacks substantial effort. The audit
team has found, as did other SmartWood teams, that many of Perum Perhutanis written
policies and objectives are either not being implemented or only superficially
implemented in the field. While some districts were still responding to the CARs for their
non-compliant first year conditions and did not respond at all to their second year
conditions. In addition, the districts did not meet simple reporting requirements listed in
their conditions. For example, they did not report quarterly theft figures, or notify
SmartWood when there was a violent incident, and, Perum Perhutani headquarters did
not formally report in writing the change in their board of director or corporate status.
Even more seriously, however, is that theft and community strife still plagues Perum
Perhutani teak plantations. In one of the certified districts, there were three shootings of
local thieves (none reported to SW as stipulated). One of the shootings, by the local
police, resulted in a death. In retaliation, a subdistrict office and Aspers (subdistrict
supervisor) house were burned to the ground. A Perum Perhutani forest guard also shot
and wounded a local thief. Theft volumes, although lower than 2000, are still significant.
In the teak producing districts, theft volumes, except for one, were higher than the annual
allowable cut (AAC).

Without question, however, shifting political dynamics, economic difficulties and

continuing land use pressures in Indonesia have created a social context in which the
implementation of Perum Perhutanis mandates has been exceedingly difficult
Theft is only a small problem in Lawu District. Lawu is primarily a pine-producing
district. Although there has been no significant change in the improvement of social
benefits for local communities during the first year under certification, Lawu has a well
established relationship with the local communities. . Lawu has not, therefore, had to
resort to the common Perum Perhutani response to theft such as police arrests, sweeping
and sting activities.
In March 2001, the Indonesian government issued a presidential decree of NOMOR 14
TAHUN 2001 TENTANG PENGALIHAN BENTUK PERUSAHAAN UMUM
KEHUTANAN NEGARA (PERUM PERHUTANI) MENJADI PERUSAHAAN
PERSEROAN (PERSERO), changing the status of Perum Perhutani from public
company to private company. Although Perum Perhutani officials claimed that this would
not change their mission, they could not articulate exactly how the changes would affect
Perum Perhutanis management and decision making structure. They did say that the
company would be able to engage in broader resource extraction activities, like mining or
oil exploration for example. As a private company, it appears that the governmentmandated obligations to community-based forest management could be substantially
reduced.
SmartWood has tried on several occasions to make it clear that meeting the conditions
and CARs is essential to maintaining the certification and that these could not be properly
completed in the timeframe given if Perum Perhutani did not concentrate their reform
efforts on the certified districts. SmartWoods message was re-emphasized during the
June 2000 audit, which resulted in the suspension of the Mantingan district. The findings
of the latest, April 2001, audit shows continuing poor performance, with the exception of
a very few instances, which strongly suggests that there is inadequate commitment on
Perum Perhutanis part to the certification process. Therefore the audit results will have a
profound impact on the certification status of most Perum Perhutani certified districts.
This report provides an overview and presents findings of the April 2001 SmartWood
annual audit of the Lawu district of Perum Perhutani. The Lawu district is located in East
Java. The total area of KPH Lawu is approximately at 51,348.9 hectares. Production
forests comprise less than a half of the total area. The AAC, on average is between
31,000 and 50,000 m3, while average projected harvests will be approximately 25,000
m3.
General Audit Findings and Conclusions
The primary objective of SmartWood annual audits is to verify, in the field, that the
conditions required as a result of the initial assessment of KPH Lawu are being met. The
audit team interviewed Perum Perhutani personnel and villagers and chose field sites
where they could collect data and review the actions taken by KPH Lawu to comply with
the conditions.

Community workshops were held in four of the certified districts. LSM Pinbuk, a local
NGO, coordinating with SmartWood/LATIN, traveled to villages to inform communities
about the workshop, to identify and recruit key stakeholders, and socialize its goals
ensuring that stakeholders could prepare to participate in the workshop. Participants
discussed community problems, identified conflicts within communities and between
communities and PP, and examined PPs approach to community development.
Approximately 40 participants attended each workshop.
Although Lawu staff provided a written response to most of the conditions with some
backup documentation, Lawus implementation of the required actions were in most
cases superficial, and in other cases showed no significant progress from the initial
assessment, and in some cases non-compliant. A substantial reason the the KPHs poor
performance is that the Perum Perhutani headquarters sent them their certification report
only one month before the audit visit, making it virtually inmpossible for the KPH to
meet the conditions.
Additionally, KPH Lawu does not have the intense theft or community conflict problems
faced by the certified teak plantations, however many of the conditions are the same or
similar to the other KPHs(a number of those conditions have been the responsibility of
PPHQ for compliance). Therefore, with fewer and less significant social and political
problems, Lawu represents the best chance for Perum Perhutani to prove they can meet
the CARs and provide evidence that they can expand their compliance to the teak
districts.
The audit team therefore recommends that the certification of KPH Lawu be
continued until the dates specififed for the compliance with the conditions and new
CARs contained herein. The SmartWood audit team re-emphasizes to Perum
Perhutani that significant effort needs to be directed toward meeting the CARs in
the Lawu district as to not impact their ability to remain in the FSC system.
2.1 Status of Conditions and Corrective Action Requests (CARs)
Closed
Condition 3: Within year 1, KPH Lawu DS must assign one or more staff responsible for
certification implementation and as a certification specialist.
Condition 4: By year 1, the personnel department must keep records to demonstrate that
key forestry staff have the necessary qualifications and practical experience to carry out
their work. (Criterion 1.2)
Condition 38: Prior to selling any logs as certified, Lawu DS must resume the practice of
stamping each log with a mark that identifies the district of origin and can be easily
acknowledged. (Criterion 8.1)

Condition 39: Throughout the certification period, PP/HQ and Lawu DS must ensure
that Lawu DS FMD implements SmartWood and FSC-approved Chain of Custody
procedures in terms of product labeling and tracking.
Met Ongoing
Condition 1: Within year 1, PP will conduct orientation workshops in each Unit for all
senior staff of Units and certified Forest Management Districts regarding the FSC and
SmartWood assessment and auditing processes, the FSC Principles & Criteria, the
SmartWood guidelines, and the conditions for certification. In future audits, SmartWood
auditors will review the progress of PP/HQ's internal assessment of compliance with FSC
Principles and Criteria throughout PP operations. At annual audits, a timetable for this
educational program and an outline of its contents must be submitted to SmartWood.
(Criterion 1.1).
Condition 2: Before each annual audit and beginning year 1, Perum Perhutani must hold
a certification workshop at KPH Lawu DS, that includes FSC and SmartWood
requirements and procedures and a review of the KPHs certification or audit report and
responsibilities. KPH staff, including Asper (Head of Subdistrict/BKPH) and Mantri
(Head of Sub Subdistrict/RPH), must attend the workshop at the KPH. The KPH
administrator, Unit administrators and certification managers and Perum Perhutani
Headquarters certification managers must attend the Unit workshop.
Condition 7: By the end of year 1, FMD Lawu DS shall have resolved the outstanding
land tenure disputes. Resolutions of land dispute should be documented in written
materials and reported at the next audit by SmartWood. (Criterion 2.1)
Condition 8: At any time during the five-year certification period, if there is a major
incident of security violation on PP lands which results in the serious or fatal injury of any
person, then the following MUST occur: 1) SmartWood or LATIN are informed in writing
by PP of the incident within 7 days of its occurrence; 2) SmartWood or LATIN will be
brought on-site (at PPs expense) to verify the incident, attain Police Reports or Court
Reports, and meet with local stakeholders; 3) If there were serious injuries, PP will
provide to SmartWood or Latin chronological reports of the incident; 4) PP must prepare
and maintain KPH level security records on each incident, and provide them to
SmartWood auditors during annual or random audits.
Condition 9: Throughout the certification period, Perum Perhutani must ensure that a
third party investigative analysis is conducted by a designated consultant for all major
security violations, i.e. anyone is seriously injured on Perum Perhutani lands. Reports on
each occurrence must be maintained in the KPH security records and provided to
SmartWood auditors during annual or random audits. Follow up reports must be done
regarding compensation to injured parties or other legal processes. All major incidents
from the date of certification must be documented and these reports made available for
inspection at the next audit.

Condition 13: Throughout the certification period, actual volumes of theft shall be
recorded and reported internally in order to develop a targeted system for theft control at
the district level. Data of theft volume and theft control budgets shall be made available
for SmartWood annual audits. These data should be used by PP to revise their overall
approach to illegal harvesting. Minutes of any meetings to discuss the issue shall be kept
and made available to auditors. Throughout the certification period, KPH Lawu DS must
supply SmartWood with verifiable data on the volume and value (at current market rates)
of theft on a quarterly basis (April 30, July 31, October 31,2000 and January 31, 2001).
Condition 28: PP shall develop a policy on the use of genetically modified organisms,
that is consistent with FSC Principles and Criteria. (Criterion 5.10)
Condition 30: All personnel who handle chemicals shall be trained in the safe handling
and use of chemicals before they are expected to use them.
Partially Met
Condition 10: PP must present an annual report that demonstrates the efforts that were
taken by PP to anticipate and prevent conflicts, regarding the resolution of past conflicts,
and/or description of compensation to injured parties. (Criterion 2.4)
Condition 11: By the end of year 1, KPH Lawu DS must provide and maintain for
security/field officers with adequate quantity of communication and mobility equipment,
including the running and maintenance facilities necessary to respond effectively to any
incidents in the field. (Criterion 2.4)
Condition 17: PP must complete the ongoing re-evaluations which compare current
cutting cycles with future yield projections. Re-evaluation should include a continual
process of adjustment, balancing ecological, community and financial concerns. At each
audit, certified FMDs must produce an annual report on progress in this regard, which will
be reviewed by SmartWood auditors. (Criterion 3.3)
Condition 25: By the end of Year 1, FMD staff at certified districts must demonstrate
more commitment on the ground to environmental guidelines for river and stream
protection. Designated riparian buffer areas with no timber harvesting must be clearly
marked in the field, and field level maps must clearly show areas that are no-harvest
riparian buffers zones. A greater diversity of native tree species should be encouraged in
these no-harvest zones. (Criterion 4.12)
Condition 31: During year 1, Lawu shall use and document a participatory approach for
planning and evaluation of community related programs. Strategies to deal with both
activities shall be integrated into the management plan. (Criterion 6.1)
Condition 36: By the end of the first year, Perum Perhutani must develop a
compensation policy for workplace injury to contract and periodic workers (e.g. day
workers, etc). The policy must provide specific levels of compensation and state the

terms of such compensation. Workers must be provided with copies of this policy at the
time they are engaged by Perum Perhutani.
Condition 37: By the end of year 1, Perum Perhutani/HQ shall adopt and distribute a
formal written policy allowing its employees, including freelance laborers, to organize and
negotiate with their employers as they choose, as per national laws and the International
Labor Organization.
Not Met
Condition 5: By the end of year of 1, PP must contract an independent, third-party
study, acceptable to SmartWood, on the appropriateness of the armed responses to
suspected timber theft. The use of large-scale security operations with the army and
police must be reviewed. This review should also include a debate within PP regarding
the use and carrying of firearms by any PP staff. (Criterion 1.3)

Condition 14: By the end of year 1, KPH Lawu DS field staff must receive training in
participatory program planning, participatory rural appraisal etc. Training must be
facilitated by an organization that is well-versed in participatory training.
Condition 19: By the end of year 1, PP must have aerial photos and topographical maps
of a scale adequate in accordance with government or national security regulations, for
use in the field and which are available at the BKPH. (Criterion 3.7)
Condition 29: PP/HQ shall create an explicit protocol detailing the circumstances in
which chemicals can be used, how they should be stored and handled, and listing the
chemicals acceptable to PP which criteria 5.12.
Condition 32: Throughout the certification period Lawu DS FMD shall collect data on
local organizations and community involvement in forest management, and update this
data as part of the planning process. (Criterion 6.2)
Condition 33: During Year 1, KPH Lawu DS must develop a written policy defining a
formal, efficient and consistent procedure for informing local people about forestry
activities which are taking place in each subdistrict, particularly harvesting. The policy
should clearly identify who within the FMD administration is responsible for informing
local people, how this will take place and how conflicts will be resolved, if they arise,
with an emphasis on anticipating problems and addressing them before they happen. In
consultation with local community leaders develop a plan/strategy for informing local
communities. Make the plan available to community leaders and stakeholders involved in
the consultation process.

Condition 35: By the end of Year 1, PP/HQ will have a consistent strategy in place to
ensure that PP workers and contractors follow safety procedures. Such a strategy should
include positive incentives for safety and stronger safety enforcement. (Criterion 6.10)
New Corrective Action Requests
CAR 1-2001: By February 1, 2002, FMD must have completely met Condition 5, PP
must contract an independent, third-party study, acceptable to SmartWood, on the
appropriateness of the armed responses to suspected timber theft. The use of large-scale
security operations with the army and police must be reviewed. This review should also
include a debate within PP regarding the use and carrying of firearms by any PP staff, in
addition, write a report on the study and develop a policy regarding the use of armed
patrols and carrying of firearms by PP staff.
CAR 2-2002: By February 1, 2002, report to SW how revenue from recovered stolen
wood is figured into the PP income, profit and loss accounting.
CAR 3-2001: By February 1, 2002, KPH must write a report that details their
mechanisms and efforts for anticipating and preventing conflicts.
CAR 4-2001: By February 1, 2002, KPH should write and implement a policy about
organizing quarterly public meeting by PHBM or designated staff at the sub-district level
to encourage local participation/consultation in management planning and program
evaluation.
CAR 5-2001 By February 1, 2002KPH Lawu shall collect data on local organizations
and community involvement in forest management, and update this data as part of the
planning process.
CAR 6-2001: By February 1, 2002, KPH must complete Condition 33, e.g. consult with
local communities on effective methods of distribution of information regarding proposed
forest activities and forums for receiving feedback from local communities. A standard
procedure should be agreed upon by both KPH and communities and begun to be implemented.
CAR 7-2001 By February 1, 2002, FMD must have met Condition 35, e.g. KPH will have a
consistent strategy in place to ensure that PP workers and contractors follow safety procedures.
Such a strategy should include positive incentives for safety and stronger safety enforcement
CAR 8-2001: By February 1, 2002, all current contracted and periodic workers and all PP
employees should be both briefed on and given a set of clear, concise, easy to understand
documents regarding all PP labor policies including workmans compensation (with specific
compensation rewards) and freedom to organize. SW should receive a copy of this set of
documents.
CAR 9-2001: By February 1, 2002, KPH must ensure that equipment is in proper running order,
with sufficient batteries, and replaced when defective, etc.

CAR 10-2001: By February 1, 2002,, KPH-Lawu must have met Condition 14, e.g. field staff
must receive training in participatory program planning, participatory rural appraisal etc. Training
must be facilitated by an organization that is well-versed in participatory training. Social forestry
staff and supervisors must have full training in PRA. KPH staff that resides and works closely
with local people, Aspers, Mandris and Mandors, should understand the basic concepts of PRA
and PHBM. field staff must receive training in participatory program planning, participatory rural
appraisal etc. Training must be facilitated by an organization that is well-versed in participatory
training.
CAR 11-2001: By February 1, 2002, KPH must stake riparian zones or tag/paint trees protected
in all KPH forests prior to harvesting activities. KPH must also clearly mark protected riparian
zones on planning and field maps.
CAR 12-2002: By February 1, 2002, PP/HQ must completely meet the requirements of Condition
29, e.g. PP/HQ shall create an explicit protocol detailing the circumstances in which chemicals
can be used, how they should be stored and handled, and listing the chemicals acceptable to PP
CAR 13-2001: By February 1, 2002, KPH must purchase new aerial photos and topographic maps for the
Lawu region and integrated into harvest and conservation planning.

SmartWood Certification Annual Addendum to the Public Summary

for Pt Perhutani KPH Lawu, July 2002.
1.0 PUBLIC SUMMARY INFORMATION
Audit Process
F.

Audit year: 2002

G.

Dates of Audit: 8-11 April 2002

H.

Audit Team: Jeffrey Hayward, Dwi Muhtaman, Teddy Rusolono, Marc

Hiller
Jeffrey Hayward, Team Leader, Forester, is Asia Pacific Regional Manager,
SmartWood Program of the Rainforest Alliance. M.Sc. Forestry, (Univ. of
British Columbia, Canada); B.Sc. Latin American Development and Forestry
(Univ. of Washington, USA). He has conducted silviculture and ecology
research for the B.C. Ministry of Forests and UBC Alex Fraser Research
Forest in Canada. In Oregon State, he worked for the federal government in
the U.S. Bureau of Land Management in forest inventory and timber sale
administration. Three years as U.S. Peace Corps community forester in
Guatemala, providing technical extension services in a tripartite agroforestry
and conservation of natural resources program. Private forestry consulting for

the B.C. Ministry of Forests, the FSC and IIED. Publications include research
on forest certification and forest silviculture. He has conducted 15 forest
management assessments, scopings, and/or audits; conducted over 40 chain of
custody assessments and/or audits; and been an instructor of four assessortraining courses (US, Malaysia, Japan, and Fiji).
Dwi Rahmad Muhtaman, MPA (Auburn University, Alabama, USA),
certification specialist who has been working on certification for more than
five years and has been working in forestry and biodiversity policy issues for
more than ten years. He has been working as a social auditor of certification
and experience conducting assessment in forest concessions, as well as
actively involved in chain of custody certification assessment. He was lead
writer of a book on Criteria and Indicator for Sustainable Plantation Forestry
in Indonesia, published by Center for International Forestry Research
(CIFOR) and Australian Centre for International Agricultural Research
(ACIAR), 2000. Founding member of the Indonesian Tropical Institute
(Lembaga Alam Tropika Indonesia/LATIN). Current position in LATIN as
Director of Certification and Consultation Division, and coordinator for
SmartWood-LATIN Initiative, SW international collaborator in Indonesia
(1998-April 2002).
Teddy Rusolono, Forest Management/Production, BA in Forestry, MSc in
Applied Statistics, PhD student in Forestry Science, Bogor Agricultural
University, Bogor. Lecturer in Statistics, Forest Management and Forest
Biometrics at Faculty of Forestry IPB, fifteen years experience in forestry
project appraisal, forestry survey and consultancy.
Marc Hiller, Forestry Consultant, B.A. Political Science and Human and
Natural Ecology, Emory University, USA. Mr. Hiller has worked as a
consultant for SmartWood Asia-Pacific since March 2001 conducting forest
management and chain-of-custody assessments and audits. He worked for
two and a half years in West Kalimantan, Indonesia as a community forester -focusing on training communities to conduct applied forestry and monitoring
research, harvest planning, and mapping
I.

Audit Overview:
This was the second annual audit of PT Perhutani Lawu DS. In the previous
year, significant changes in the Perhutani situation occurred, which bear
repeating herein.
Decisions of October 2001
Based on the results of the SmartWood 2001 annual audit and the Pt.
Perhutani response to the Lawu annual audit report, SmartWood decided to
maintain the certified status for the KPH Lawu DS, as communicated in a
letter to the company on October 22, 2001.

However, there were numerous Corrective Action Requests (CARs) issued in

the first year annual audit of Lawu, and weaknesses and areas of noncompliance observed by audit teams in every Perhutani district, raised
concerns that the company would require significant improvement to maintain
Lawu as certified in the year 2002. SmartWood explained to PT Perhutani that
if there were not sufficient progress in meeting ongoing conditions and CARs,
the KPH Lawu certificate would be suspended immediately.
Furthermore, that failure to address weaknesses (especially those that were
company wide and/or required action by PP Headquarters or Unit II) would
certainly inhibit the success of re-instatement of suspended teak districts
elsewhere in Unit II or I, as this would further communicate lack of
commitment to FSC Principle 1.6.
In order to clarify the certified status of each different district, SmartWood
replaced the previous Perum Perhutani certification code (SW-FM/COC-053)
with an individual code for any certified district. In October 2001,
SmartWood issued a new certification code for KPH Lawu DS district as: PT
Perhutani KPH Lawu (SW-FM/COC-162).
In October 2001, SmartWood notified the FSC of the decision to keep KPH
Lawu as a certified district and notified the FSC of the new code and the
cancellation of the original Perum Perhutani code. Lawu's certification period
remained unchanged as March 15, 2000 - March 14, 2005.
At the time of the 2002 annual audit of Lawu DS, the KPHs that produce teak,
namely Cepu, Kebonharjo, Kendal and Madiun, remain suspended. To regain
certification status of those KPHs, PT Perhutani will need to demonstrate to
SmartWood a satisfactory resolution of the outstanding conditions and CARs
that induced the suspension.
Audit Plan 2002
SmartWood planned to conduct the second annual audit between mid-March
and mid-April, 2002, to monitor compliance of year two certification
conditions, CARs, and ongoing year 1 conditions.
Perhutani was referred to Section 1.2 of the audit report and Section 3.3 of the
original assessment report, which summarize the conditions and CARs to be
met by PT Perhutani Lawu. From year 1, there were 23 ongoing conditions
and 3 closed out conditions. From year 2, there were 9 conditions that needed
to be audited. There still remain 3 conditions for the year 3 annual audit.
To ensure that the Perhutani staff were given sufficient time to demonstrate
compliance and to enable field visits to enough key sites, the Perhutani and
the audit team allocated two complete days for field inspections and two days

for travel, meetings, and document review. The team was comprised of four
individuals, covering disciplines of forest production, silviculture, inventory,
and environmental planning; and social sciences. Field inspection sites were
chosen after discussions with staff and a review of planning documents, in
order to optimize the selection of new sites as well as cover some areas that
were of concern in past audits.
J.

Sites Visited:
BKPH (Subdistrict) Wilis Utara
BKPH (Subdistrict) Lawu Utara
BKPH (Subdistrict) Pacitan
BKPH (Subdistrict) Ponorogo Barat
Dusun Tanggungrejo, Desa Karang Patihan, Kec. Balong
Dusun Gulun, Desa Watubonang, Kec. Badegan
Desa Belah, Kecamatan Ponorogo, Pacitan
Desa Pandasari
Desa Ngrayudan
RPH Salam
Pos PTM Kare (Forest worker/forest guard station)
Nursery/Persemaian, Pine, RPH Kare
Block 37, RPH Kare Felling site, tumpang sari, April 2001
Block 38, RPH Kare Felled 1999, planted to pine 2000, tumpang sari
Block 41b, RPH Kare - Felling site, year 2002
Block 40, RPH Kare - Protected forest (Hutan Lindung)
Block 133a, RPH Guyangan Area of illegal logging
Block 7c, RPH Guyangan - Planned felling site, year 2002
Logyard (TPK) Glonggong

K.

Personnel Interviewed:
The following people were consulted during this audit:
Person interviewed
Bambang Risyanto
Faiz Saleh
Soemadi S.
Totok S. Rahardjo
Joko Wahluyo
Hardjono
Bambang Suherman
Soetikno
Masrap
Acep Setiardi
IsroI

Position/Organization
Administator KPH Lawu DS
KSPH Madiun
Ajun Adm/KSKPH/Korkam
Ajun/KTKU
Ajun/Lawu Ponorogo Pacitan
Ajun KTU
Asper Wilis Utara
Asper Ponorogo Barat
Asper Lawu Utara
Asper Ponorogo Timur
Asper PMDH/Suplap

Sunarto
Harianto
Paeman
Nuhardi
B. Eko Saputro
Senen
Sarmo
Bedjo
Kentil
Haryono
Soeparno
Wakiran
Saridjo
Kusno
Suwarno
Kariman
Suharto
Budiono
Duriadi
Sukino
Kadi
Maulana
Rusmanto
Supriono
Pak Samin
Pak Pardi
Pak Saidi
Tugiyono
Sucipto
Magiyanto
Rokhmadi
Damiyo
Untung
Katimin
Tunggak
Sairin
Pangian Siregar
Lirwono
Rachmadi
L.

KRPH Guyangan
KRPH Kare
KTPK Glonggong
KTBI
Operator SISDH
Mandor Tebang
Mandor Sadap
Farmers Sadap
PLPS/PMDH
Kepala Tata Usaha (KaTU)
PLPS/NGO staff
Personnel, manpower/employment affairs
Kepala Desa Pandansari
KRPH Salam
Polhut
Poltek
Mandor sadap (Resin Tapping Supervisor)
Mandor sadap
Mandor sadap
Mandor sadap
Mandor sadap
Petugas pos PTM 01
Petugas pos PTM 01
Petugas pos PTM 01
Penyadap
Penyadap
Penyadap
Polter/Polhut
Kepala Desa Belah
Mandor
Mandor Polhut
Petani/farmer
Petani/farmer
Petani/farmer
Petani/farmer
Petani/farmer
KaSubdit Keamanan/Direksi Security Head
Mandor
KRPH Karangpatihan

Documentation reviewed:
Himpunan Data Revisi Matriks Pembahasan Persiapan Audit Manajemen
Hutan Lestari KPH Lawu DS Tahun 2002
Rencana dan Realisasi Produksi Kayu Tahun 1996-Maret 2002

1.2

Rencana dan Realisasi Produksi Getah Tahun 1996-Maret 2002

Buku Rencana Pengaturan Kelestarian Hutan KPH Lawu DS 1994-2003
DaftarPerbandingan Susunan Kelas Hutan selama 4 Jangka dan Posisi
Kelas Hutan Akhir Tahun 2001
Rekapitulasi Gangguan Keamanan Hutan dari 1997-Maret 2002
Laporan Realisasi Anggaran Pendapatan dan Biaya Tahun
Realisasi Pendapatan Tahun 2001-Maret 2002
Pengamatan Anggaran Tahun 2001-Maret 2002
Neraca Perbandingan Tahun 2001-Maret 2002
Perkembangan Rencana dan Realisasi Pembuatan Tanaman Tahun 19962002
Pedoman Risalah Sela (PHT 50 Seri Produksi 95, 1997)
Pedoman Pengelolaan Hutan Produksi Terbatas (PHT 49, Seri Produksi
94, 1997)
Tarif Kerugian Akibat Gangguan Hutan (PHT Seri Umum 78/99, 1999)
Pedoman Konservasi Pada Hutan Produksi (PHT 87 Seri Produksi 132,
2000)
Pedoman Konservasi Keanekaragaman Hayati di Perum Perhutani (PHT
89 Seri Produksi 134, 2000)
Instruksi Penyusunan RPKH Kelas Perusahaan Pinus (PHT 31 Seri
Produksi 80, .)
Instruksi Pelaksanaan Pembuatan Berita Acara Pemeriksaan (PHT 41 Seri
Produksi 20, 1985)
Kebijakan PHBM (Perhutani Decree)
Pedoman Pengamatan Hutan dengan Sistem Patroli Tunggal mandiri
(PTM), Perhutani 1998
Pedoman Pengembangan Usaha, Perhutani 2001
Surat Keputusan No. Pol.: Skep/1198/IX/2000 tentang Buku Petunjuk
Pelaksanaan Pengawasan dan Pengendalian Senjata Api non Organik
TNI/Polri
Documents related to PMDH, PRA reports, PHBM, log theft reports

General Audit Findings and Conclusions

In overview, PT Perhutani Lawu demonstrated limited progress towards
meeting the ongoing certification conditions and Corrective Action Requests
(CARs) from Annual Audit 2001.
However, it would be fair to say that there were both instances of
improvement and cases of Perhutani efforts that simply fell below SmartWood
expectations for a certified company. There still exists a problem in PT
Perhutanis understanding of certification requirements, either conditions,

CARs, or process, which may result in a fundamental lack of attention to the

areas of weakness identified in previous evaluations, assessments, or audits.
It is important to restate that conditions or CARs that have been posed to
Perhutani in the past reflect areas of management weakness with respect to
FSC Principles and Criteria. It is the expectation of the certifier that the
operation will comply with conditions or CARs in stated timeframes. In many
aspects covered within this audit report, Perhutani Direksi, Unit, and KPH
management response to Conditions or CARs would generally seem to be
those of the Perhutani standard operating procedures, meaning that new
methods of approaching Conditions or CARs have not been developed.
The purpose of a certification audit is to verify progress over time. The
auditors are looking for evidence of what has changed in the operation over a
period of 6 months or one year. In many cases, it would seem to be the case
that Perhutani Direksi, Unit, or KPH management will not or do not intend to
fully meet particular conditions and CARs. While Perhutani expressed in its
letters to SmartWood of August 2001 that there were certain CARs that the
company did not plan to address, after the SmartWood letter of October 23,
2001, entitled: SW RESPONSE TO PP COMMENTS ON THE
CERTIFICATION AUDIT REPORT FOR KPH LAWU DS, the company had
given assurances that it would address the CARs completely.
Perhutani does intend to improve the internal communications from and
between Direksi, Unit and KPH for certification. This is especially important
because the responsibilities within the certification contract, conditions, and
CARs are indeed different. It is also important because the company will not
be able to attain compliance with certification Conditions and CARs if there is
not improved communication of responsibilities.
It is very important to SmartWood that the Perhutani staff clearly understands
the conditions and CARs and why they were issued. This is important,
because SmartWood must be able to determine if lack of compliance was due
to lack of understanding or awareness on the part of the responsible party or
whether it was due to an unwillingness or inability to change. However, if
Perhutani insists that a particular Condition of CAR can not be met, that their
current way is acceptable, i.e., that the company will not change, then these
areas of dispute must be settled with SmartWood before continued auditing
can occur.
It was stated previously, that KHP Lawu represented the best chance for PT
Perhutani to prove they can meet the Conditions and CARs of certification,
and to provide the evidence to external auditors that Perhutani compliance
can be met on the teak districts.

The general finding of the audit team was that the KPH management should
be given a period of 3 months to address the issues that were not sufficiently
met. This will imply careful consideration of the information delivered to the
KPH via this audit report, through interactions with Direksi and Unit
management, and from the input of auditors during the field visit of April 8 to
11.
A CAR verification audit should be planned for 1 2 persons, for 1 2 days
at Lawu, sometime between August 1 and 15, 2002. This will provide
Perhutani sufficient time to prepare the necessary measures to address the
CARs. Failure to address these within that time frame will result in suspension
of the certificate.
1.3

Status of Conditions and Corrective Action Requests (CARs)

A. Compliance Summary of Previously Issued Conditions and CARs

Not Met:
Condition 5, CAR 1
2001

Partially Met:

Met/Ongoing:

Closed:

Condition 1.

Condition 8

Condition 12
Condition 2.
Condition 14, CAR 10
2001
Condition 6.

Condition 9

Condition 7
Condition 11, CAR 9 2001
Condition 19, CAR 13 2001

Condition 15
Condition 16
Condition 32, CAR 5
2001
Condition 33, CAR 6
2001
Condition 34

Condition 10, CAR 3 - 2001

Condition 13, CAR 2 - 2001

Condition 17
Condition 25, CAR 11
- 2001
Condition 24
Condition 28

Condition 18
Condition 20
Condition 27
Condition 29, CAR 12 - 2001
Condition 30
Condition 31, CAR 4 - 2001
Condition 35, CAR 7 - 2001
Condition 36, CAR 8 - 2001
Condition 37
Condition 39

All conditions and CARs that were not met, partially met, or met/ongoing have been
replaced by CARs with specific deadlines for completion. Year 3 conditions and

conditions applicable throughout the period of certification have not been replaced by a
CAR.
B. New CARs Issued in this Audit
CAR 1/2002: By August 15, 2002, Perhutani must conduct a meeting that will
specifically address the content of certification reports, audits, and contractual
certification requirements and ensure that responsible personnel are clearly
informed of the significant/systemic steps each needs to take to meet certification
requirements.
(Condition 1 & 2 replaced by CAR 1/2002)
CAR 2/2002: By August 15, 2002 Perhutani shall provide rationale, explanation,
and/or supporting arguments, in written form, regarding the effectiveness of armed
responses to theft. The report must be submitted to SmartWood.
(Condition 5 and CAR 1-2001 replaced by CAR/2 2002)
CAR 3/2002: By August 15, 2002, KPH Lawu must develop (for specific situations
faced by the KPH) a new plan, strategy, or approach that specifically addresses
methods to reduce illegal logging. This plan must be submitted to SmartWood.
(Condition 6 replaced by CAR 3/2002)
CAR 4/2002: By August 15, 2002, and prior to any SmartWood audit, PP shall
provide SmartWood with data on illegal logging levels within KPH plantations that
must include the estimated volumes, number, and value of trees stolen.
(Condition 13 and CAR 2 2001 replaced with CAR 4/2002)
CAR 5/2002: By August 15, 2002, KPH Lawu must write a report that details their
mechanisms and efforts for anticipating and preventing conflicts. This report must
be submitted to SmartWood.
(Condition 10 & 15 and CAR 3-2001 replaced by CAR 5/2002)
CAR 6/2002: By August 15, 2002, KPH Lawu shall develop an educational and
enforcement program for hunting and trapping control that is targeted to those
areas where risk is highest.
(Condition 12 replaced by CAR6/2002)
CAR 7/2002: By August 15, 2002, KPH Lawu must produce a policy about
organizing quarterly meetings with communities at the BKPH level.
(Condition 31 & 15 and CAR 4 2001 replaced by CAR 7/2002)
CAR 8/2002: By August 15, 2002, KPH Lawu shall collect a list of local
organizations and community groups that could be consulted with as part of the
planning process.
(Condition 32 & 15 and CAR 5 2001 replaced by CAR 8/2002)

CAR 9/2002: By August 15, 2002, KPH Lawu must consult with local communities
on effective methods of distribution of information regarding proposed forest
activities. A standard procedure should be agreed upon by both KPH and
communities and then be implemented.
(Condition 33 & 15 and CAR 6 2001 replaced by CAR 9/2002)
CAR 10/2002: By August 15, 2002, KPH shall produce a statement that clearly
states the selection criteria for participants in the Perhutani community
development program.
(Condition 34 replaced by CAR 10/2002)
CAR 11/2002: During the period of certification, Perhutani shall demonstrate and
monitor progress towards increased worker use of safety equipment provided by the
company.
(Condition 35 and CAR 7 2001 replaced by CAR 11/2002)
CAR 12/2002: By August 15, 2002, PP shall produce a concise and easy to
understand document that summarizes PP labor policies and distribute this to all
KPH employees and workers.
(Condition 36 & 37 and CAR 8 2001 replaced by CAR 12/2002)
CAR 13/2002: By August 15, 2002, KPH will have organized PRA training for social
forestry staff and supervisors.
(Condition 14 and CAR 10-2001 replaced by CAR 13/2002)
CAR 14/2002: During the period of certification, auditors will monitor the progress
of KPH Lawu in demarcating riparian zones in all logging compartments.
(Condition 25 and CAR 11 2001 replaced by CAR 14/2002)
CAR 15/2002: By the next annual audit, KPH specific conservation strategy/policy
shall be produced. This should provide detailed information regarding the forest
types and condition of the protection forest, special areas, and describe the
management strategies for protecting and improving the biodiversity values within
Lawu protected and plantation forest.
(Condition 27 & 20 replaced by CAR 15/2002)
CAR 16/2002: By August 15, 2002 PP must produce elements of a formal training
program for pesticide or chemical use, handling, and temporary storage.
(Condition 29 & 30 and CAR 12-2001 replaced by CAR 16/2002)
CAR 17/2002, By the time of the next annual audit, Perhutani must produce
evidence of the framework and timeframe for transition of reform that will allow
each district (KPH) the ability to develop annual, site-specific plans according to
recent changes or district-specific conditions.
(Condition 16 replaced by CAR 17/2002)

CAR 18/2002: By the time of the next annual audit, PP must have conducted
systematic research on non-timber forest product use within KPH forests
gathering information on who is participating, frequency and extent of collection,
volumes harvested, seasons utilized, etc.
(Condition 18 replaced by CAR 18/2002)
CAR 19/2002, By August 15, 2002, Perhutani must not include kayu ex-bhukti
within the transfer PAS documents used for certified logs. Perhutani shall use the
new SW certification registration code for KPH Lawu DS.
(Condition 39 replaced by CAR 19/2002)