Indonesia is a main tropical timber-producing country and is a leader in implementing Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreements (FLEGT-VPA) with the European Union (EU). In 2015, as a part of the FLEGT-VPA process, the government began a timber legality
assurance system called Sistem Verifikasi Legalitas Kayu (SVLK), which is mandatory for all timber product businesses. Since November 2016, Indonesia has issued FLEGT licenses for timber products exported to the EU. This study shows that the SVLK scheme has added value for the public
in controlling timber legality, eradicating illegal logging and illegal timber trading, enhancing sustainable forest management and contributing to legal timber trading. The scheme also has added value in providing legal certainty for businesses. However, it contributes less to product marketing
and its use as a standard to assess sustainable forest management needs to be evaluated.
Legality Constraints: The Emergence of a Dual Market for Tropical Timber Products?