The reason cited for the delay is to ensure that the proposed regulation operates in tandem and consistently with previous federal decrees. The government has said it will issue revised regulations.
In classifying oil palm plantations as industrial forests, investors in the Indonesian oil palm industry will be able to obtain land permits from the government to developed and convert certain forest land into oil palm plantations. The Forestry Ministry is quoted as saying that the industrial forest concept has been implemented successfully for the paper and pulp industry as well a, the plywood industry so it intend to apply a similar approach in the oil palm sector.
Analysts point out that only around 30% of Indonesia’s timber production is now derived from natural forests whereas 70% is from industrial plantation forests.
Euro-zone and US financial crises bite into furniture exports
Exports of Indonesian furniture have declined by more than 30% as the euro-zone and US debt crises bite into trade. Political unrest in the Middle-East also added to the toll on the Indonesian furniture industry according to the Indonesian Furniture Entrepreneurs Association (Asmindo).
The net value of Indonesian furniture exports for the first half of 2011 stood at US$1.15 billion, a decline of 21% against levels in the first half of 2010 when exports were valued at US$1.46 billion.
Exports of rattan furniture also declined sharply by 26% to US$60.32 million in the first half of the year. Exports of rattan furniture have been sliding ever since the global economic crisis in 2008. The depreciation of the US dollar against the Indonesian rupiah as a result of both the European and US debt crises contributed to the decline in the exports of Indonesian furniture. Competition from other low cost producers like Vietnam and China compounded the problem further.
Indonesia logs, domestic prices | US$ per m³ | |
Plywood logs | Face Logs | 222-265 |
Core logs | 210-239 | |
Sawlogs (Meranti) | |
219-279 |
Falcata logs | |
187-218 |
Rubberwood | |
95-99 |
Pine | |
196-239 |
Mahoni (plantation mahogany) | |
505-536 |
|
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Indonesia Sawnwood Prices | ||
Indonesia, construction material, domestic | US$ per m³ | |
Kampar (Ex-mill) | AD 3x12-15x400cm | 209-228 |
KD | 223-258 | |
AD 3x20x400cm | 243-266 | |
KD | 244-273 | |
Keruing (Ex-mill) | AD 3x12-15x400cm | 258-272 |
AD 2x20x400cm | 248-266 | |
AD 3x30x400cm | 231-250 | |
|
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Indonesia Plywood Prices | ||
Indonesia
ply MR BB/CC, FOB |
US$ per m³ | |
2.7mm
|
434-490 | |
3mm
|
392-433 | |
6mm
|
371-413 | |
MR Plywood (Jakarta), domestic | ||
9mm
|
292-303 | |
12mm
|
283-294 | |
15mm
|
273-288 | |
|
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Other Indonesia Panel Prices | ||
Indonesia,
Other Panels, FOB |
US$ per m³ | |
Particleboard | Export 9-18 mm | 246-255 |
Domestic 9 mm | 226-238 | |
12-15mm | 221-233 | |
18mm | 217-228 | |
MDF | Export 12-18mm | 278-293 |
Domestic 12-18mm | 261-273 | |
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Indonesia Added Value Product Prices | ||
Indonesia,
Mouldings, FOB |
US$ per m³ | |
Laminated Boards Falcata wood | 328-341 | |
Red Meranti Mouldings 11x68/92mm x 7ft up | ||
|
Grade A | 522-553 |
Grade B | 480-502 |