TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Plywood exports seen rising by 20% in 2017

Wood exporters are targeting a significant increase in plywood shipments to European and British markets next year as they delivered products with a license certifying their products as legally sourced for the first time on Tuesday

The Jakarta Post
Jakarta
Wed, November 16, 2016

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Plywood exports seen rising by 20% in 2017

W

ood exporters are targeting a significant increase in plywood shipments to European and British markets next year as they delivered products with a license certifying their products as legally sourced for the first time on Tuesday.

The value of domestic plywood exports to the major markets is expected to climb by at least 20 percent from this year’s figures thanks to the newly introduced license, according to Indonesian Wood Panel Association (Apkindo).

The Forest Law Enforcement, Governance and Trade (FLEGT) license, which supplements the national timber legality assurance system (SVLK) applied earlier, will exempt Indonesian timber products, including plywood, from European scrutiny over illegal logging.

The FLEGT certificate will bring fresh air to the forestry sector as Indonesian wood products have been stigmatized as being sourced from irregular logging practices, according to Apkindo board member of marketing and foreign affairs division Gunawan Salim.

“With the FLEGT license, we’ll have the chance to export our products not only to Europe but also to other countries because developed countries are concerned with legality. Our sales in the European market will increase,” Gunawan said during an event to mark the initial shipment of the licensed-plywood.

Due to tighter competition in the European market, Indonesian plywood sales to the bloc have dwindled.

In 2015, Indonesian shipments of plywood and other wood panel products to the bloc declined by 3.8 percent to US$129 million, according to data from Trade Map. Apkindo provides neither export data nor estimates.

With the license, the forestry industry products will no longer be subject to lengthy due diligence to comply with the EU Timber Regulation (EUTR) that has been implemented since March 2013. This means significant reduction in business costs.

In anticipation of the rule, local stakeholders have developed SVLK. After nine years of negotiation with the bloc, it declared that Indonesia had achieved full implementation of its SLVK and therefore, could secure a FLEGT license.

Indonesia, which has the world’s third-largest tropical rain forest area and was once notorious for rampant illegal logging, is the sole country to obtain the certificate that has been officially effective since Nov. 15.

Soon after the license came into force, four companies – Korindo Ariabima Sari, Kayu Lapis Indonesia, Kutai Timber Indonesia and Mujur Timber – shipped 23 containers of plywood to several European countries and to the UK from Tanjung Priok Port in North Jakarta.

Mujur Timber president director Yansen Ali said he expected to deliver 40 containers to Europe each month with a value of up to $2 million. On that day, the firm shipped 23 containers.

“With the license, we expect the price to climb up to 10 percent […] because it reflects our high-quality product,” Yansen said, adding that his company is optimistic that its market share could grow by 30 percent next year.

The four companies also plan to ship another 45 containers from ports in Medan, North Sumatra; Semarang, Central Java; Pangkalan Bun, Central Kalimantan; and Surabaya, East Java in the near future. (wnd)

-------------------

To receive comprehensive and earlier access to The Jakarta Post print edition, please subscribe to our epaper through iOS' iTunes, Android's Google Play, Blackberry World or Microsoft's Windows Store. Subscription includes free daily editions of The Nation, The Star Malaysia, the Philippine Daily Inquirer and Asia News.

For print subscription, please contact our call center at (+6221) 5360014 or subscription@thejakartapost.com

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Generating Questionnaires

Thank You

Thank you for sharing your thoughts.
We appreciate your feedback.