Officials at Indonesia’s Forestry Ministry have said the country should continue with its ban on the issuance of new forest concessions to fully participate in international efforts on climate change mitigation.
However, the proposal to extend the government moratorium on granting concessions, which comes to an end in May, is being opposed by some who say the extension of the ban will hurt the economy.
National media reports say that some Indonesian politicians are calling for a freeze on the Reforestation Fund if a decision is made to continue the moratorium.
The challenge to continuation of the moratorium is being supported by the Agriculture Ministry and the palm oil and mining sectors that fear this is a business unfriendly policy which risks weakening economic growth.
The Agriculture Ministry would prefer, say media reports, to see stricter enforcement and new controls to protect peatland and primary forest areas rather than a ban on concessions.
A coalition of non-governmental environmental organizations has also entered the debate urging the government to remain firm in its commitment to protect the forests of Indonesia and uphold its commitment to reduce green house gas emissions by between 26 percent and 41 percent by 2020. The NGOs say that if the moratorium is not extended this goal cannot be achieved.
Several publications by the Center for International Forestry Research (CIFOR) also call for extension of the policy and document benefits that the policy has already brought.
International Furniture and Craft Fair Indonesia
The 2013 International Furniture and Craft Fair Indonesia (IFFINA) was held in Jakarta from March 11-14. The four-day fair featured over 500 domestic and overseas exhibitors.
The organizers expect business deals worth around US$400 million to be concluded this year.
Indonesia’s 2012 furniture exports grew over ten percent to around US$2 billion on the back of improved demand in US and European markets.
Meranti SQ US$ 255 – 250
Kapur SQ US$ 330 – 345
Keruing SQ US$ 250 – 270 Selangan Batu regular US$ 490 – 530
Speaking at the event the Industry Minister said last year’s exports to the US were worth over US$500 million while sales to Germany and the Netherlands were around US$200 million each.
Analysts remarked that demand was initially coming from the furniture replacement segment of the US market but, as US housing growth is expanding, demand is now also coming from the new home furnishing segment of the market.
To achieve growth in Indonesia’s furniture exports the government has indicated it will assist exporters seeking to diversify further into new markets in India, China and emerging economies in South America and Africa.
ASMINDO to assist members enter new markets
Commenting on the response of buyers at IFFINA a spokesperson from the Indonesian Furniture Industry and handicraft Association (ASMINDO) said that, because there was a 30 percent rise in the number of buyers visiting the fair especially those from non-traditional markets, an improvement in the export performance of the sector seems assured.
ASMINDO intends to work with its 700 members to plan penetration of non-traditional markets in South America and Africa without abandoning opportunities which have recently been created for Indonesia furniture in China, Malaysia and South Korea.
In other news ASMINDO is undertaking training on internal tracking for members in the Solo area to strengthen the capacity of members as they apply for the external audit required before enterprises can secure the timber legality license (SVLK)
Domestic Log Prices
|Indonesia logs, domestic prices||US$ per m³|
Face and core logs
|Mahoni (plantation mahogany)||135-385|
Domestic Ex-mill Sawnwood Prices
|Indonesia, construction material, domestic||US$ per m³|
Export Plywood Prices
|Indonesia ply MR BB/CC, export FOB||US$ per m³|
Domestic Plywood Prices
|MR Plywood (Jakarta), domestic||US$ per m³|
Export and Domestic Other Panel Prices
|Indonesia, Other Panels, FOB||US$ per m³|
Export Added Value Product Prices
|Indonesia, Mouldings, FOB||US$ per m³|
|Red Meranti Mouldings 11x68/92mm x 7ft up