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Indonesia has an enormous size of tropical forest and faces numerous problems in its management. Since government regulations and intergovernmental mechanisms are not found to be the effective solutions for such problems, voluntary sustainability standards (VSS) have been introduced as an alternative solution. This chapter examines the role of one such VSS—the Programme for the Endorsement of Forest Certification (PEFC)—in Indonesia. In particular, it attempts to answer two questions. First, does the PEFC complement or substitute government regulations and other VSS under the Forest Stewardship Council (FSC)? Second, what is the role envisioned for the PEFC in creating sustainable forest management in Indonesia? Interviews with stakeholders and an analysis of the documents of PEFC, FSC, and government regulations called Sustainable Forest Production Management (PHPL) suggest that PEFC seems to complement government regulations but substitute FSC. Although the PEFC is likely to be widely applied in the country, it is unlikely to emerge as an effective tool to achieve sustainable forest management. Of the two main reasons for this, the first is the lack of support from government and civil society. While the government clearly prioritizes the standard developed by it—the Indonesian Ecolabelling Institute (LEI)—within the civil society, several NGOs are not supportive of voluntary certification. Second, the absence of global and national legitimacy weakens the enforcement role of PEFC.

The Programme for the Endorsement of Forest Certification (PEFC) and Its Contribution to Sustainable Forest Management in Indonesia