AUTHOR TITLE Bartley, Tim (2010) Transitional private regulation in practice: The limits of Forest and Labor Standards Certification in Indonesia. SOURCE FINDINGS OF THE STUDY - Controversy of Indonesia forest products sector in 1990s. - Environmental organizations boycott tropical timber - Europe urge to boycott tropical timber and critique government actions. - Rainforest Alliance certified forest managed by Perum Perhutani was introduced to recognize innovative harvesting techniques. - Lembaga Ekolabel Indonesia (LEI) has certified only 20 FMU covering 1.5 million ha. - However, forest certifications is still lack of recognition (lack of demand for certified wood). - At macro level, forest certification does not successfully minimize forest degradation, conversion forest land to agriculture and illegal logging. - As 2009, there were 130 FSC COC certificates in Indonesia which mostly furniture factories. - In the absence of FSC certificates, auditors play role in use their own standard before decide to grant the certification. - The logic of certification is to evaluate the forest units that have been used but governance does not respect the integrity. NOTES Ratnasingam, Macpherson, An assessment of Ioras (2008) Malaysian wooden furniture manufacturers’ readiness to embrace chain of custody (COC) certification Shukri Mohamed, Sham Shor Nahar (2015) Forest Certification in Malaysia: Current status and challenges Larsson, Stendahl and Rood (2016) Supply chain management in the Swedish wood products industry – a need analysis - The readiness to adopt COC among wooden furniture manufacturer is low - Lack of premium price - Limited market potential - High cost - the assumption of using rubberwood as the certified resources among manufacturer shows the lack of understanding among them. - current status participation in COC certification is still low with participation only with 502 firms from 3000 establishments involved. - Lack of awareness cause China’s forest product industry limited to obtain certification - BJC industry has low COC participation due to lack demand in Asia market - Firm with COC certification only distribute their product to environmentally sensitive market such as USA, Europe (Romania, Finland) - BELUM HABIS SEBAB BOSAN Scandinavian Journal of Forest Research