One Timber One ID (SIPUHH)

High transaction costs, long bureaucracy, and a weak controlling system create bad image of public services, especially in terms of forestry business. One Timber One ID (SIPUHH) is an innovation as a tool in controlling forestry business. It provides a system in which any timber traded has an ID, so its origin and legality can be identified. It promotes greater accountability on the timber industry to respect forestry law.

Innovation Summary

Innovation Overview

As a country with the third largest tropical forest in the world, the Indonesian tropical forest plays an important role as one of the determinants of biological buffer system necessary to sustaining life on Earth. As a natural resource, the forest has also economic value as a source of state revenue, and in accordance with the Constitution, that land, water and natural resource inside is under control of the state and utilized for the people well-being. In order to optimize the forest economic value, the eligible license holders are allowed to utilize timber from the production forest through permission mechanism from the government.

Every log utilized from the forest should be recorded and reported through forest product administration to calculate the amount of non-tax state revenue. The forest product administration is started from the recording of tree stand in the forest, log harvesting, log transporting, up to log processing in industry. For years, the forest product administration has been conducted in official assessment by assigning officials as a supervisor in every stage to ensure the recording and reporting conducted properly. Because of the lack of officials compared to the number and location of the license holders, the supervision by officials becomes ineffective. Even, according to the study of the Corruption Eradication Commission of Republic of Indonesia, such conditions have created high cost economy burdening the license holders as a result of long bureaucracy chain.

In addition, because the recording is held manually based on paper document, and the reporting is conducted conventionally using postal service, the forest products administration is not able to provide accurate data and information. As a consequence, in case the license holders violate the regulation, cannot be taken an action promptly and appropriately. Based on the condition, the forest product administration is shifted from official assessment to self-assessment by implementing One Timber One ID system, a forest product administration carried out electronically web-based. By the One Timber One ID system, every recording and reporting shall be held electronically by the license holders themselves, while officials role is replaced by system automation. In addition, it provides facility for the license holders to issue their transport document electronically. However, the log transport document can only be issued when all obligation related to the timber is comply. Otherwise, it will not process any further and consequently the log transport document will not be issued.

From the government side, the One Timber One ID system is very helpful in providing a complete, accurate and real-time data and information as a control tool as well as a basis of action taken promptly and appropriately. It has also restored image in public services by providing self-service mechanism according to basic principles of good governance, i.e. transparency, participatory and accountability. From the business side, it has made the forestry business interesting and efficient, as well as encouraging the license holders to comply the rules according to the principles of good corporate governance.

Innovation Description

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Year: 2016
Level of government: National/Federal government


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