Forest Concessionaires Urges Govt to Open Export

Kamis, 19 September 2013 | 09:36

Indonesian Forest Concessionaires Association proposed to the government to selectively open export of wood products for roundwood, sawnwood, and woodworking. or industrial timber Nana Suparna said in the domestic market, the selling price of timber from natural forests is only 50% of the world market price. Such low price in the domestic market pushed upstream forestry business since the price cannot compensate the higher production costs.

Therefore, Nana said it needs an effort to expand market access for timber and wood products by opening the export of logs and sawn timber. APHI also proposed the revocation restrictions on the molding cross-sectional area that can be exported.

Previously, the export restriction was set on the Ministerial Decree No.20/MDAG/PER/5/2008 on forestry industry products.

In comparison, the timber logs price in Indonesia is sold in the range of US$120 – 130 per square meter, while in Japan the market price is US$300 – 305 per square mater. For Merbau wood, the local market price is US$300 per sq meter, while in the Chinese in market is more than two-fold, US$848 – 880 per sq meter.

Domestic and export selling prices distortion also reflected in sawn wood and wood working products. Referring to data from Tropical Timber Market Report May 2013 edition, Merbau sawn wood in China reached US$1.386 - 2.200 per square meter. While the average export price of Indonesian wood working in 2012 reached US$581 per square meter

Opening tap export will provide incentives for industry to undertake production activities. As a result, forest timber production will potentially increase from the current state. In 2012, the actual production of timber was only about 4 million square meters from the harvest quota of 9.1 million square meter per year. (tw)

by Ana Noviani, Aprianto Cahyo Nugroho