Indonesia: Furniture industry targets brisk growth in exports

  • June 19, 2010
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 5980
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Furniture exports from Indonesia totalled US$674 million in the first quarter of 2010, 15% up from US$587 million in the same period last year. Indonesia has set a target of US$2.59 billion for its furniture exports this year, an increase of 15% over US$2.25 billion in 2009. Indonesian furniture companies showcased their traditional and rattan furniture at the Shanghai International Furniture Expo on 2-4 June 2010. The expo is aimed at middle and upper-middle class customers in China.

The Indonesia Furniture Industry & Handicraft Association (Asmindo) forecasts that its exports to China will hit US$20 million in 2010. This level is significant compared to US$9 million in 2009, which was 20% down from 2008. Indonesian furniture exports to China peaked in 2004 at US$14 million.

Certification improvements
Sustainable forestry management and afforestation efforts in Selopuro, Wonogiri in central Java, have improved the standard of living among villagers. The Indonesian Ecolabelling Institute (LEI) has introduced forest certification in 10 sustainable community forest management units in Java covering 21,000 hectares of forests. These measures have generated revenues for the community to build schools.

Selopuro was the first village to have its community forest certified in 2004 and since then the community has experienced many improvements. For example, in the past the area had scarce water resources but today there are 22 water sources catering the needs of villagers. In addition to the revenue from timber, the villagers earn additional income of US$60 by breeding livestock in community forests. The villagers also practise agro-forestry.

Indonesia Log Prices
Indonesia Log Prices
Indonesia logs, domestic prices US$ per m³
Plywood logs Face Logs 192-235
Core logs 173-206
Sawlogs (Meranti)
183-244
Falcata logs
150-184
Rubberwood
61-85
Pine
165-204
Mahoni (plantation mahogany)
474-502

Indonesia Sawnwood Prices
Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill) AD 3x12-15x400cm 183-202
KD 204-238
AD 3x20x400cm 225-248
KD 227-256
Keruing (Ex-mill) AD 3x12-15x400cm 239-253
AD 2x20x400cm 227-245
AD 3x30x400cm 209-228

Indonesia Plywood Prices
Indonesia ply MR BB/CC, FOB
US$ per m³
2.7mm
396-453
3mm
353-394
6mm
332-374
MR Plywood (Jakarta), domestic
9mm
255-266
12mm
247-257
15mm
236-250

Other Indonesia Panel Prices
Indonesia, Other Panels, FOB
US$ per m³
Particleboard Export 9-18mm 219-228
Domestic 9mm 199-211
12-15mm 191-202
18mm 182-194
MDF Export 12-18mm 253-266
Domestic 12-18mm 235-246

Indonesia Added Value Product Prices
Indonesia, Mouldings, FOB
US$ per m³
Laminated Boards Falcata wood 301-314
Red Meranti Mouldings 11x68/92mm x 7ft up

Grade A 489-523
Grade B 445-466