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Jakarta Post

Forestry industry expects to see boost this year after exports fall to $11.6b in 2019

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, January 9, 2020   /  12:20 pm
The Jakarta Post Image
Workers attach wood panels to the body of a ship under construction in Sarang district, Rembang regency, Central Java, in 2017. (The Jakarta Post/Suherdjoko)

Exports of Indonesian wood products totaled US$11.6 billion in 2019, a 4 percent drop from the previous year due to declining demand caused by the ongoing United States-China trade war and the weak competitiveness of local products. Industry players, however, are upbeat entering 2020 thanks to policy reforms. Wood veneer, panel and woodwork products suffered the steepest declines, with annual exports falling 20 percent, 16.14 percent and 11.14 percent, respectively, said Association of Indonesian Forest Concessionaires (APHI) chairman Indroyono Soesilo. Wood panel exports to China are close to zero as Indonesian products have become less competitive than foreign counterparts, while shipments of woodwork products to the US and China were dealt a blow from the ongoing trade war between the world’s two largest economies, an industry player said. “APHI has...