Palladium MFP4 - Sustainable Forest Management in Indonesia: Study On a Potential Combined Audit Approach For The SVLK / PHPL And The IFCC/PEFC Forest Management Certification Standards

Project Background

The fourth Multi-stakeholder Forestry Programme (MFP4) supports Indonesia to achieve its objectives regarding sustainable timber and community forestry. MFP4 builds on earlier programme phases to deliver an ambitious set of results on coverage of timber legality licences, export volumes of sustainably sourced timber, and the growth of community-based forest enterprises.

To deliver these results, Palladium and Systemiq have established a joint technical assistance facility in Jakarta, which collaborates with Indonesian ministries to strengthen forest policy implementation and enable investments in community forests and sustainable land use. The MFP4 facility directly supports the Indonesian Ministry of Environment and Forestry (MOEF) to deliver two core workstreams:

Sustainable and legal timber: Ensuring the sustainability of Indonesia’s governance reforms in the timber sector through the timber legality assurance system, or ‘SVLK’, which underpins FLEGT licensing; and

Community forest business development: Facilitating the expansion of community forest businesses through increased access to skills, finance, knowledge and services for business development and forest stewardship.

This study will be managed under Workstream A – Sustainable and Legal Timber.

Study Background

This study is a follow up of an initial analysis conducted by forest audit / certification practitioners at the beginning of 2020, aiming to understand the potential synergies between mandatory and voluntary forest certification schemes on sustainable production forest management in Indonesia.


Initial analyses conducted by the MFP4 team indicate that combined certification audits can significantly increase efficiencies and reduce costs for operators managing forest concessions in Indonesia. Combining audits can also make the process of achieving sustainable forest management simpler and therefore more likely to be undertaken by operators.


Should combined audit approaches prove successful and be endorsed by stakeholders, they will provide a practical example of how mandatory forest management schemes (developed with the support of the FLEGT Action Plan) and voluntary certification schemes can operate in synergy.


Many forest management standards possess highly complementary qualities. Closer collaboration between the owners of these schemes – both in Indonesia and internationally, as more timber producing countries begin exporting FLEGT-licensed timber - could in turn can help to expand the coverage of sustainable forest management in tropical forests. 


MFP4 will design and test two combined audit approaches between mandatory and voluntary forest certification schemes in Indonesia, specifically:


A combined audit of the Ministry of Environment and Forestry’s mandatory sustainable forest management standard (SVLK / PHPL), and the Forest Stewardship Council’s (FSC) forest management standard

A combined audit of the Ministry of Environment and Forestry’s mandatory sustainable forest management standard (SVLK / PHPL), and the Indonesian Forestry Certification Corporation (IFCC) standard.

This Term of Reference belongs to the second track of work: A combined audit between SVLK/PHPL and IFCC standards.


This study will design and test a combined audit approach between the Ministry of Environment and Forestry’s mandatory sustainable forest management standard (SVLK / PHPL), and the Indonesian Forestry Certification Corporation (IFCC) standard. The approach will focus on the main assessment stage of the combined audit process.


This work will focus on plantation forest concession.


Initial analyses indicate that combined audits can significantly increase efficiencies and reduce costs for operators managing plantation forest concessions in Indonesia.


Scope of work


The work aims to develop findings from the initial analysis to the next stage. 


MFP4 is seeking consultant teams of qualified experts in order to deliver this study.


The Consultants will adopt the following process when studying each of the combined audit methodologies:


Firstly, the Consultants will review a combined audit methodology already developed by the MFP4 team to assess the SVLK and IFCC standards simultaneously. This methodology aims to maximise cost effectiveness for audit teams and concession holders at all stages of the certification process, while producing reports that meet the requirements of both certification schemes.

Secondly, the Consultants will pilot this combined audit approaches for a main assessment in selected timber production concession in Indonesia. These pilots will test the methodology, gather feedback from concession holders and be the basis of improvements to the design of combined audit approaches.

Thirdly, the Consultants will summarise and communicate key findings from this study, and opportunities for other auditors and concession holders to adopt this approach, to stakeholders in the international and Indonesian forestry community. This work will involve the presentation and review of the combined audit approach with government representatives from the MOEF and National Accreditation Committee (KAN), to auditors and concessionaires from the FKMPI and APHI networks, to IFCC / PEFC stakeholders at relevant fora and General Assemblies, as well as other international fora.

Deliverables


Study Objective: Design and pilot a combined audit of the Ministry of Environment and Forestry’s mandatory sustainable forest management standard (SVLK / PHPL), and the Indonesian Forestry Certification Corporation (IFCC) standard.


The Consultants will produce the following three deliverables:


Complete an analysis report of synergies between IFCC and PHPL, and opportunities to put greater synergies into practice.

Design a combined audit methodology to conduct simultaneous SVLK / PHPL and IFCC assessments in timber plantation concession in Indonesia.

Pilot combined audit methodology in a selected timber plantation concession in Indonesia, at the main assessment stage. This pilot does not need to result in a formal audit report to be used by the forest manager – although delivering a formal audit report for both schemes is preferable. Implement improvements to combined audit approach based on this experience.

Present findings and recommendations to stakeholders in Indonesia and internationally at up to three relevant fora. These fora are to be agreed with the MFP4 team, and will include the online IFCC General Assembly in 2020.

Qualifications and Experience


The Consultants will need to demonstrate the following qualifications and experience within their teams


Minimum requirements:


Up to date SVLK / PHPL qualifications / accreditations for team members, ensuring that team is qualified to main assessments for these standards. In addition to having accreditations, team members shall have experiences in SVLK / PHPL field audits.

Up to date IFCC / PEFC qualifications / accreditations for team members, ensuring that team is qualified to main assessments for this standard. In addition to having accreditations, team members shall have experiences in IFCC / PEFC field audits.

Professional level Bahasa Indonesia and English within team.

Excellent quality assurance processes.

 


Additional skills desired:


Strong understanding of sustainability demands within international timber markets, particularly regarding FLEGT, and PEFC.

International networks and strong working relationships in the forest certification and SFM community.

Excellent writing and presentation skills for international events and fora.

 


Timeline


The indicative timeline for this study is October 2020 to January 2020.


Budget


The total budget available for this study is GBP 37,500. This includes up to GBP 30,000 for fees (including all taxes and overheads). Up to GBP 7,500 is available for travel, workshop and accommodation costs.


Evaluation of proposals


Bids will be scored based on their financial competitiveness (30% of score) and technical suitability (70% of score).


How to Apply


MFP4 is open to contracting either an organization or teams of individual consultants.


To respond to this opportunity, please send the following documents and information to thomas.gegg@thepalladiumgroup.com with the name of the position as your email subject.


1.                   A technical proposal outlining the methodology to complete each of the objectives described in these Terms of Reference. Maximum 5 pages.


2.                   A financial proposal (in GBP), detailing:


Personnel inputs required, detailing the total number of days and daily fee rates. Institutional management fees, overheads, tax and administrative costs are expected to be included in these daily fee rates.

Travel and accommodation expenses, and any additional expenses required

Match funding or in-kind contributions from the Contractor

3.                   Name of referees from at least two previous clients


4.                   Curriculum Vitae for each team member, emphasizing the experience relevant to this project. 


Closing date: 15 October 2020.