Indonesia: Exporters urged to diversify international markets

ITTO's Tropical Timber Market Report
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The Ministry of Forestry recently hosted a press conference for the Secretary General of the Ministry of Forestry and the head of EU Delegation for Indonesia, Brunei Darussalam and ASEAN, Ambassador Julian Wilson.

The press conference underscored the cooperation between Indonesia and EU in respect of the adoption by Indonesia of its new policy for trade in verified legal wood products.

Both parties agreed to continue to work together to combat trade in illegally harvested and manufactured wood products through the implementation of Indonesia’s V-Legal certification scheme for wood product exports.

Ambassador Wilson encouraged exporters of certified Indonesian wood products to be confident of the Indonesian scheme and diversify into international markets.

He further reiterated that the EU member states recognise the credibility of the Indonesian Timber Legality Assurance Scheme (TLAS) in meeting the market requirements for the proof of legality of wood products entering the EU.

V-Legal certificates for export to 94 countries
Recent Ministry of Forestry data for exports suggest that, from 1-22 January a total of 3,427 V-Legal certificates were issued covering more than 1 million cubic metres of logs and wood products. Some of these certificates were issued for plywood and sawnwood which was exported to some 90 countries.

The Secretary General of the Ministry of Forestry hopes Indonesian wood products exports to the EU will increase to more than US$1.2 billion this year.

Group certification for furniture manufacturers
Seven furniture companies in Solo, Central Java, have applied for group SVLK/TLAS certification under the new scheme set out in the Ministry of Forestry Regulation Number 38/Menhut-II/2009 amended by Regulation No. P.68/Menhut-II/2011, as well as the additional amendment in P.45/Menhut-II/2012. This will be the first experience in group certification for furniture makers.

Plan mooted for ‘wood terminals’
An official of the Ministry of Industry, Benny Wahjudi, said that the government will initiate the development of ‘wood terminals/clearing houses’ for verified legal wood products.

He pointed out that the forestry and timber sectors are strategic industries and contribute significantly to the Indonesian economy. Over the past 5 years however, wood product exports have been falling, most notably for pulp, added value products and wooden handicrafts.

The purpose of developing the "wood terminals" for certified legally logged timber is to strengthen efforts in curbing illegal logging.

It is proposed that wood product manufacturers will be required to purchase raw materials from the terminals. The Ministry of Forestry official asserted that some manufacturers may still be tempted to buy illegally harvested timber because it is cheaper.

With clear regulations and the building of wood terminals to supply logs to the timber industry the risk of illegal logs entering the supply chain will be minimised, said the official.

International Furniture and Craft Fair Indonesia
ASMINDO, the Indonesia Furniture and Handicraft Association will organise Indonesia’s largest annual furniture and handicrafts fair, the International Furniture and Craft Fair Indonesia (IFFINA) from 11-13 March 2013.

The venue will be the Jakarta International Expo, Jalan H. Benyamin Sueb, Kemayoran – Jakarta 10610, Indonesia. This Southeast Asian international fair is expected to attract buyers from over the world .

Domestic Log Prices

Indonesia logs, domestic prices US$ per m³
Plywood logs
Face and core logs
Sawlogs (Meranti) 232-330
Falcata logs 110-270
Rubberwood 94-125
Pine 90-172
Mahoni (plantation mahogany) 135-385

Domestic Ex-mill Sawnwood Prices

Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill)
AD 3x12-15x400cm
AD 3x20x400cm

Keruing (Ex-mill)
AD 3x12-15x400cm
AD 2x20x400cm
AD 3x30x400cm


Export Plywood Prices

Indonesia ply MR BB/CC, export FOB US$ per m³
2.7mm 625
3mm 525

Domestic Plywood Prices

MR Plywood (Jakarta), domestic US$ per m³

Export and Domestic Other Panel Prices

Indonesia, Other Panels, FOB US$ per m³
Export 9-18mm
Domestic 9mm

Export 12-18mm
Domestic 12-18mm


Export Added Value Product Prices

Indonesia, Mouldings, FOB US$ per m³
Laminated Boards
Falcata wood

Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
Grade B

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