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To reduce deforestation and illegal logging several international initiatives have been carried out. Recognition of SVLK existence, among others, is through Forest Law Enforcement, Governance and TradeVoluntary Partnership Agreement (FLEGT-VPA) and Illegal Logging Prohibition Act (ILPA), which are proof of Indonesian Government’s commitment to improving forest governance. Sistem Verifikasi Legalitas Kayu (SVLK) regulates compliance from forest management and timber trade aspect. Scope of SVLK audit covers from upstream to downstream forest governance, one of which is sawmill industry. Fulfilling the legality aspect of sawmill industry is mandatory in SVLK. SVLK also analyses wood traceability and sawmill activities in the industry. One of indicators used is sawn timber recovery of sawmills. The research was conducted using literature studies, descriptive analysis and comparative analysis of secondary data and regulations related to SVLK. Case study used as research object was Penggergajian Kayu (PK) Rimba Sari sawmill industry with production capacity of &lt;6,000 m 3 /year in Banyumas. PK Rimba Sari generates of 59.34% sawn timber recovery. The study shows that there is potential for utilization of wood waste amounting to 40.66%. So far, wood waste is only used for direct sales but no processing has been carried out yet. The objective of research is to analyze the optimization of sawn timber recovery concerning legality aspect of company as a form of compliance with SVLK scheme. This study concludes that researchers recommend an alternative use of wood waste as part of a sustainable industry and clean production.

Sawn timber recovery optimization in primary industry from legality aspect