Indonesia is revising the boundaries of the peatland defined in the moratorium agreed with Norway. Reports suggest that some 4.8 million ha. of peatland will be removed from the area of 10.7 million ha. previously defined as protected in the original moratorium. Compounding the chances of a dispute on areas covered by the moratorium is the decision by the Governor of Aceh province to allow an oil palm plantation to be established in an area which, say opponents, is a protected peatland.
Weak global demand for Indonesian products will eventually affect Indonesian domestic economy
The housing markets in major timber importing countries continue to weaken and the EU debt crises continues to bear upon international trade opportunities. These factors, amongst others, are causing export prices for Indonesian timber products to spiral downwards reaching their lowest in 2011. While the Indonesian domestic economy has remained stable, analysts are of the opinion that it will not be long before the weak global demand for Indonesian products begins to affect the local economy.
Exporters call for aggressive timber export promotion
Indonesian timber exporters have expressed the view that there is a need for the timber industry and Indonesian government to formulate strategic programmes to boost the export of timber products. Some timber exporters added that, while there are ongoing efforts, more aggressive programmes and planning are needed to cushion and safeguard the Indonesian timber industry in the short-term while solutions to the US and EU debt crises are negotiated.
Indonesia Log PricesDomestic Log Prices
Indonesia logs, domestic prices | US$ per m³ | |
Plywood logs | Face Logs | 221-264 |
Core logs | 209-238 | |
Sawlogs (Meranti) | 218-278 | |
Falcata logs | 186-217 | |
Rubberwood | 94-98 | |
Pine | 195-238 | |
Mahoni (plantation mahogany) | 504-535 | |
Domestic Ex-mill Sawnwood Prices | ||
Indonesia, construction material, domestic | US$ per m³ | |
Kampar (Ex-mill) | AD 3x12-15x400cm | 208-227 |
KD | 222-257 | |
AD 3x20x400cm | 242-265 | |
KD | 243-272 | |
Keruing (Ex-mill) | AD 3x12-15x400cm | 257-271 |
AD 2x20x400cm | 247-265 | |
AD 3x30x400cm | 230-249 | |
Export Plywood Prices | ||
Indonesia ply MR BB/CC, FOB | US$ per m³ | |
2.7mm
|
430-485▼ | |
3mm
|
388-429 ▼ | |
6mm
|
367-409 ▼ | |
MR Plywood (Jakarta), domestic | ||
9mm
|
292-303 | |
12mm
|
283-294 | |
15mm
|
273-288 | |
Export and Domestic Other Panel Prices | ||
Indonesia, Other Panels, FOB | US$ per m³ | |
Particleboard | Export 9-18 mm | 244-253 |
Domestic 9 mm | 226-238 | |
12-15mm | 221-233 | |
18mm | 217-228 | |
MDF | Export 12-18mm | 278-293 |
Domestic 12-18mm | 261-273 | |
Export Added Value Product Prices | ||
Indonesia, Mouldings, FOB | US$ per m³ | |
Laminated Boards Falcata wood | 325-338 ▼ | |
Red Meranti Mouldings 11x68/92mm x 7ft up | ||
Grade A | 518-549 ▼ | |
Grade B | 476-498 ▼ |