Indonesia: Competitive China

  • Январь 26, 2010
  • • Источник: ITTO's Tropical Timber Market Report
  • • Просмотров : 6410
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In contrast to the confident mood in Malaysia, the chairman of the Association of Indonesian Furniture and Handicraft Exporters (Asmindo), has reportedly said that the furniture industry in all ten member countries of ASEAN share a common appreciation of the challenges and risks of the ASEAN-China FTA. In particular Asmindo thinks that furniture producers are not ready to face the competition from Chinese producers. The fear expressed is that furniture imports into ASEAN countries from China could capture a major slice of the domestic market. Imports currently account for around 30% of the domestic market and this could grow as imports become cheaper as tariffs are removed.

Currently, there are 314 tariff items from eight sectors listed under the FTA. Asmindo is said to have been lobbying the Indonesian authorities to modify or suspend at least 5 of the 12 tariff items listed within the furniture sector. Export performance Exports of Indonesian timber products, especially sawnwood and plywood, have been on a decline since 2003, when exports were over 5 million cubic metre However, exports in the following year fell to 4.5 million cubic metre; to 3.5 million cubic metre in 2005; 3 million cubic metre in 2006; 2.9 million cubic metre in 2007, and 1.68 million m3 in 2008. Total exports for year 2009 only managed to reach 1.2 million cubic metres up to November 2009. Indonesian timber companies have reportedly said that it is inappropriate government policies and the failure to grasp present day market realities had contributed to this decline. The trade says that while the size of the international timber market has expanded over the past decade, Indonesia’s share of that market had declined. They added that China trade model was good as the sector has diversified its products and improved its value-added production technology. The industry also said that Malaysia is another good example to emulate; here industries manage pricing of timber products by spreading costs over a range of products including logs. Indonesian companies do not have this opportunity because of a log export ban in Indonesia.

Indonesia Log Prices
Indonesia Log Prices
Indonesia logs, domestic prices US$ per m³
Plywood logs Face Logs 187-230
Core logs 169-202
Sawlogs (Meranti)
178-239
Falcata logs
147-181
Rubberwood
50-74
Pine
160-199
Mahoni (plantation mahogany)
468-495

Indonesia Sawnwood Prices
Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill) AD 3x12-15x400cm 175-194
KD 197-231
AD 3x20x400cm 218-241
KD 222-249
Keruing (Ex-mill) AD 3x12-15x400cm 233-247
AD 2x20x400cm 220-238
AD 3x30x400cm 203-222

Indonesia Plywood Prices
Indonesia ply MR BB/CC, FOB
US$ per m³
2.7mm
392-449
3mm
349-390
6mm
328-370
MR Plywood (Jakarta), domestic
9mm
250-261
12mm
242-252
15mm
231-245

Other Indonesia Panel Prices
Indonesia, Other Panels, FOB
US$ per m³
Particleboard Export 9-18mm 215-224
Domestic 9mm 191-203
12-15mm 184-195
18mm 174-186
MDF Export 12-18mm 248-261
Domestic 12-18mm 230-241

Indonesia Added Value Product Prices
Indonesia, Mouldings, FOB
US$ per m³
Laminated Boards Falcata wood 297-309
Red Meranti Mouldings 11x68/92mm x 7ft up

Grade A 484-518
Grade B 440-461