PEFC Stakeholder Dialogue

Bali, Indonesia
November 2016

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GENERAL INTRODUCTION

The information provided in this presentation remains the exclusive property of APPTimber
and is not allowed to be distributed, copied or modified without prior written consent by APPTimber.
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OUR CORE QUALITIES

Providing Imported
Timber Solutions

Global Sourcing

Customer Service

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OUR CORE VALUES

Integrity

Reliability

Commitment To
Be The Best

Teamwork

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OUR VISION 2020

To Be A Market Leader In The Wood Working Industry In Asia

By 2020 Whilst Providing An Excellent Work Environment
For All Personnel

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FAST FACTS

APPTimber (incorporated in 1998) is an Asian based company specialized in

the supply of imported timber and related products for the Asian timber
industry (APPTimber is not related to Asia Pulp & Paper)

Our HQ is located in Malaysia and we run various marketing operations all

over Asia

Our sales teams have good knowledge not only about raw materials but also
in manufacturing and we aim to be known as Asias most innovative company
providing imported timber solutions offering cost effective solutions from
sustainable resources

We have distribution centers in Malaysia, Indonesia and Thailand and planning

one in Vietnam

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CURRENT NETWORK

APPTIMBER supply programs

APPTIMBER HQ

APPTIMBER operations
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COMPANYS CERTIFICATION

2000 FSC Member Economic Chamber

2005 FSC CoC certified
2007 FSC membership cancelled by us

2012 PEFC Stakeholder

2016 PEFC CoC certified

APPTimber is the only regional company with PEFC and FSC certified
distribution centres in South East Asia promoting imported timber solutions
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SALES DIVERSIFICATION PER COUNTRY

2016

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SALES PER PRODUCT SEGMENTS

2016

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THE PREFERRED PARTNER FOR BUYERS & SUPPLIERS

PEFC ISSUES IN ASIA

Lack of awareness on PEFC amongst Asian manufacturers

PEFC is not very strong in their promotion to SEA manufacturers and
advantages are not clear
PEFC does not have enough local presence amongst business owners;
maybe too much focused at Government and NGO levels
Some SE Asian manufacturers think they have to pay a premium for PEFC
certified imported timber (like FSC certified timber)
European buyers of Asian madetimber products mainly ask for FSC
certification and not for PEFC
The SLVK and recent FLEGT license in Indonesia will reduce the demand
for PEFC certified products

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Indonesia fast facts

Indonesia is one of Asias largest wooden
product exporters
Indonesias goal is to grow the export of
furniture from U$2.6 billion in 2015 to U$5
billion by 2020
Most manufacturing relies heavily on local
hardwoods
Not enough awareness about legality and
sustainability
Still illegal logging
Only a small percentage of local forests is
certified
Using imported wood materials will reduce
deforestation in Indonesia
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Indonesia fast facts

Poor knowledge about imported veneers,
sawn timber and the lack of key furniture
species like Ash, Beech, Cherry, Oak,
Walnut and Pines limits the potential
growth of exports of furniture, doors,
flooring, etc. for international markets
Local woodworking vocational schools
focus more on manufacturing using local
species and not on imported species
which adhere to international legality and
sustainability standards
Lack of wood-knowledge centres; better
education of all parties involved in
Indonesias wood working industry will
benefit the local community
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Kendal Industrial Park (KIK)

KIK is a 2,700ha mega integrated
industrial park jointly developed by PT
Jababeka (Indonesia) & Sembcorp
Development (Singapore) and 100%
supported by the Indonesian &
Singaporean governments

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Kendal Industrial Park (KIK)

APPTimbers Facilties;

APPTimber purchased 1ha of industrial land at KIK in 2015 which is being

developed as a Wood Distribution & Training Centre (in short WDTC) and
phase 1 is scheduled to be completed end 2016, phase 2 mid 2017 and phase 3
in 2018
146m
18m

16m

24m

24m

6m

24m

14m

CONTAINER
UNLOADING

VENEER
SHOWROOM

DISTRIBUTION 2

DISTRIBUTION 3

DISTRIBUTION 4

VENEER

LUMBER / PANELS

LUMBER

PANELS

68m

DISTRIBUTION I

50m

TRAINING

PHASE 3

8m

12m

12m

PHASE 1

24m

36m

SHOWROOM

PHASE 2

OFFICE

RENTAL OFFICES

6m

6m

Client
PT APP Timber
Title
Wood Distribution & Training Centre
Plan
Phase 1, 2 & 3
Location
SRG Kendal Industrial Park
Date
15-Mar-16

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APPTimbers Wood Distribution & Training Centre

Phase 2 : Main Building

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APPTimbers Wood Distribution & Training Centre

Main Functions;

Facilitators;

Capacity building by developing

and strengthening the skills,
abilities and processes of people
and companies involved in the
woodworking industry

Industry experts from APPTimber

Interactive training centre for the

woodworking industry
Providing technical know-how on
the sourcing of imported legal &
sustainable resources
Showroom of imported certified
veneers, sawn timber and panel
products

External industry experts

representing a varied scope of
related matters
Third party certification
organisations such as Control
Union, FSC, Rainforest Alliance,
PEFC, idh, TTF, etc
Trade organisations such as AHEC,
Fordaq, French Timber, German
Timber, IWPA, NHLA, MTC, TEAM,
etc
Leading architects from all over the
world
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APPTimbers Wood Distribution & Training Centre

Main Functions;

Facilitators;

Distribution centre of imported

certified sawn timber, veneer and
panel products

Trade magazines like Panels &

Furniture, FDM, Asian Timber,
WoodMag, Woodflooring Asia, etc

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APPTimbers Wood Distribution & Training Centre

Know-How To Be Provided;

Target Groups;

The importance of sustainable

forest management world-wide
and in Indonesia

Students at vocational schools such

as;
PIKA (Institute for Woodworking
based in Semarang)
ITB (Bandung Institute of
Technology in Bandung)

How the use of imported wood

products will help reducing
deforestation in Indonesia
Explain about 3rd party certification
systems like FSC, PEFC, SLVK and
other facilitators such as idh, The
Borneo Initiative, CIFOR (Center for
International Forestry Research)
The importance of sourcing legal
timber and explain legality systems
like EUTR, FLEGT, VPA, Lacey Act,
etc

Woodworking personnel of existing

factories;
Furniture (solid & panel)
Flooring (solid & engineered)
Doors (solid & engineered)
Building components (various)
Interior decorations (various)

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APPTimbers Wood Distribution & Training Centre

Know-How To Be Provided;

Target Groups;

Technical information about

imported timber species

Related associations such as;

AMKRI (Indonesian Furniture &
Craft Association)
ASMINDO (Indonesian Furniture
& handicraft Assoc.)

Various grading & measuring

techniques
Various applications using imported
timber species in furniture, flooring,
doors, construction and
architecture

Designers, architects and specifiers;

HDII (Himpunan Designer Interior
Indonesia)

The various techniques producing

veneers, sawn timber and panels
Trends in the woodworking industry
and understanding international
markets
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Endorsements
Indonesian;
Mr. Arief Odon (Chief Editor, WoodMag); it is always
good to invest educational facilities for direct users of
imported wood in Indonesia, so they will have variety of
choices in using timber for their design and production
Mr. Randy Perdana (Chain Of Custody Coordinator,
Rainforest Alliance); an incredible idea and good
initiative to become more responsible in managing our
wood process in relation to sustainability and legality.
This facility will have better impact for the woodworking
industry in this country
Mr. Yosafat Wiratno (Deputy Chairman Public
Relations, PIKA); this a is good idea because PIKA as
education institution needs improving the teachers &
students knowledge especially from harvesting,
sawmilling, kiln drying, processing and so on until
marketing
Mr. Tony Wood (idh the sustainable trade initiative);
the Indonesian forestry sector is moving through a
transition phase as traditional sources of natural timber
dry up and plantation wood begins to take its place.
The industry needs to learn how to handle smaller tree
size and improve the efficiency of operations to remain
competitive. This requires training and a chage in
management thinking. APP Timbers initiative is
therefore coming at an important time for the industry
and will provide key support in achieving future national
level goals

Art Klassen (Regional Director, Tropical Forest

Foundation-Indonesia); a concept whos implementation
is long overdue. If Indonesias export goals in wood
products are to be achieved, the industry needs to
broaden its horizons. The Chinese wood working industry
stands as an example of what a country can
accomplish. Indonesia with its infinitely richer certified
natural forest resources, coupled with an understanding
of global species potential and local manufacturing
expertise, is remarkably positioned to be a world leader in
the export of high value added forest products sourced
from around the world
Mr. Ade Iskandarsjah Latief (Editor Skala Magazine); to
build a Timber Wood Training Center in Semarang is a
bright idea; such centre will be a good solution
for people who want to know about wood in detail
Mr. Bhakti Sadeli (Marketing & Promotion, ISWA); ISWA
supports all companies who invest in teaching people
involved in the Indonesian woodworking industry and we
welcome APP Timber's good initiative

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Endorsements
Foreign;
Ms. Lee Zhuomin (Editor, Panels & Furniture Asia); it captures
the essence of CSR - its not only about giving to charities, its
about being responsible in everyday work where the company
has a presence. Very often, many lumber companies boast
about buying and sourcing from legal sources, but few touch
on the impact on communities
Mr. Jean-Francois Guilbert (Director, French Timber); once
again, as a leading supplier of imported European species to
Indonesia, APP Timber is at the forefront of preparing the
future of the wood Industry. Education and training are the
keys to a sustainable and prosperous wood industry in
Indonesia and FrenchTimber fully support this initiative. Not
only will it increase local business but it will also offer new
opportunities for manufacturers to open and develop new
markets
Mr. Michael Buckley (Consultant, World Hardwoods); this is a
good proposal to a country much in need of professional help,
and one that the world should take more account of given its
population, resources and potential
Mr. Eerik Schipped (Contol Union Certification); this initiative
received our support since it contributes to upgrading the
knowledge level and awareness locally about wood /
woodworking and connected regulations, laws. certification
systems etc. This is also in line with our activities as executed
by our office in Jakarta. We know APP Timber as a trustable
company working seriously

Mr. William Pang (Founder, Pablo Publishing); Indonesia is the

single largest tropical supplier of wood flooring for the EU
market, with exports up 7.6% totaling 1.144 million m2. in the
first nine months of 2015 according to the ITTO. With such
huge volumes traded annually, the necessity for education
and sharing know-how has never been more crucial. The new
Wood Training Centre will ensure that local communities are
empowered to secure sustainable livelihoods and protect
precious forest resources at the same time
Ms. Sarah Price (PEFC); this is a fantastic initiative to support
Indonesias burgeoning wood industry.
Mainstreaming
sustainability into Indonesias forest products sector requires
the consideration of many aspects and APP Timbers initiative
stands to improve technical capacity, manufacturing
efficiency and product diversity.
The hands-on training
approach will no doubt deliver positive impacts for local
businesses and the positioning of Indonesias forest product
industry globally
Mr. Mark Barford (NHLA); we are pleased to see more
education and look forward to finding the proper role for
NHLA in conjunction with our partners at AHEC
Ms. YoYo Xie (Editor, FDM Asia); The establishment of this
wood training centre by APP Timber is undoubtedly an
excellent initiative to enable the timber users to get technical
know-how on the sourcing of imported legal and sustainable
resources. This educational facility will provide a lot of
professional information to the wood industry
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