Counterfeit furniture deceiving Indonesian consumers says ASMINDO

ITTO's Tropical Timber Market Report
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The Indonesian domestic furniture market is worth around USS$700 million according to the Indonesian Furniture Entrepreneurs Association (ASMINDO). In a recent statement ASMINDO has suggested that the domestic market is being undermined by imports of fraudulently labelled furniture.

To address this ASMINDO has urged the government to tighten rules and regulations governing furniture imports in order to offer some protection to the local furniture industry especially from mislabelled imported furniture. ASMINDO says it has uncovered instances of falsified labelling and mislabelling of imported furniture after investigating the origin of some products and the business practices of some importers.

The government has been asked to take the necessary steps to make it mandatory for imported furniture be supported by an authentic certificate of origin. ASMINDO cited a few cases where European style furniture with a “Made in Europe” label was actually manufactured in an Asian country. The counterfeit furniture can be sold at a high price on the domestic market, thereby deceiving the consumers.

Options mulled to detect counterfeit furniture
The head of the business unit at the Directorate of Wood and Plantation-based Industries at the Indonesian Industry Ministry added that it will act to put a stop to counterfeit furniture imports. However, the Ministry is yet to implement inspection procedures for imported furniture. The ministry proposed that imports of furniture be limited only to certain ports, as is the case with the imports of food and beverages as this will facilitate inspection. Other options include the use of certificates of origin to verify the origins of products.

UK welcomes Indonesia’s signing of VPA
In a press release the UK’s Defra (Department for Environment, Food and Rural Affairs) has praised the work to tackle illegal logging with the news that Indonesia has become the fifth country to sign a voluntary partnership agreement (VPA) with the EU. The press release says Indonesia is leading the way in Asia and has one of the biggest areas of forest in the world. Six countries have now signed agreements with the EU, and another four are in negotiations.

The UK Government is helping developing countries to prevent the loss of forests as part of wider efforts to help them both adapt to the impacts of climate change whilst continuing their economic development.

Indonesia Log Prices Indonesia Log Prices
Indonesia logs, domestic prices US$ per m³
Plywood logs Face Logs 222-265
Core logs 210-239
Sawlogs (Meranti)
Falcata logs
Mahoni (plantation mahogany)

Indonesia Sawnwood Prices
Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill) AD 3x12-15x400cm 209-228
KD 223-258
AD 3x20x400cm 243-266
KD 244-273
Keruing (Ex-mill) AD 3x12-15x400cm 258-272
AD 2x20x400cm 248-266
AD 3x30x400cm 231-250

Indonesia Plywood Prices
Indonesia ply MR BB/CC, FOB
US$ per m³
MR Plywood (Jakarta), domestic

Other Indonesia Panel Prices
Indonesia, Other Panels, FOB
US$ per m³
Particleboard Export     9-18 mm 246-255
Domestic 9 mm 226-238
               12-15mm 221-233
               18mm 217-228
MDF Export     12-18mm 278-293
Domestic 12-18mm 261-273

Indonesia Added Value Product Prices
Indonesia, Mouldings, FOB
US$ per m³
Laminated Boards Falcata wood 328-341
Red Meranti Mouldings 11x68/92mm x 7ft up

Grade A 522-553
Grade B 480-502
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