Indonesia: Moratorium on conversion of natural forests and peatlands
Indonesia announced a 2-year moratorium on new permits to convert natural forests and peatlands. The moratorium will take effect from the beginning of 2011.
Any permits granted for agriculture, plantations and mining before 2011, will not be affected by the moratorium. The Indonesian Ministry of Forestry pointed out that no permits to convert natural forests or peatlands have been issued since 2009.
The moratorium will not affect the operations of industrial timber estates and forest concession development programmes. Among these programmes are Societal Forest Development, Village Forest Development, Forest and Land Rehabilitation, Concession Restoration and Partnership Forest Development.
From 2011, businesses in agriculture, plantation and mining sectors will be permitted to extend their operations only to degraded forests or idle land. The National Land Bureau (BPN) has identified 12 million hectares of idle land and 40 million hectares of degraded forests for this purpose. The moratorium is a measure to be taken in the context of the US$1 billion partnership agreement between Norway and Indonesia for forest conservation projects in Indonesia including under the framework of the Reduce Emissions from Deforestation and Forest Degradation (REDD) Plus. The agreement could be extended after an evaluation in 2013. The moratorium will contribute to achieving the target set by the Indonesian government to reduce greenhouse gas emissions by 26% before 2020.
Government’s action plan
The 2-year moratorium will have wide ranging effects on a number of provinces across Indonesia, including Riau, Jambi and Papua. In Riau province alone, the moratorium will protect up to 700,000 hectares of natural forest. The Indonesian government will adopt a 9-point action plan to ensure the successful implementation of the partnership agreement and moratorium. The action plan entails setting up a forum to communicate and address concerns regarding the moratorium within the private sector. In addition, consultations at federal and regional levels will be held to create support and synergy between the federal government and local governments. There are wide spread concerns among the industry and civil society on how to ensure the wood supply. In this regard, the issue of raw material supply for the Indonesian timber products industry in a sustainable way must be addressed, say analysts.
Indonesia Log Prices
From 2011, businesses in agriculture, plantation and mining sectors will be permitted to extend their operations only to degraded forests or idle land. The National Land Bureau (BPN) has identified 12 million hectares of idle land and 40 million hectares of degraded forests for this purpose. The moratorium is a measure to be taken in the context of the US$1 billion partnership agreement between Norway and Indonesia for forest conservation projects in Indonesia including under the framework of the Reduce Emissions from Deforestation and Forest Degradation (REDD) Plus. The agreement could be extended after an evaluation in 2013. The moratorium will contribute to achieving the target set by the Indonesian government to reduce greenhouse gas emissions by 26% before 2020.
Government’s action plan
The 2-year moratorium will have wide ranging effects on a number of provinces across Indonesia, including Riau, Jambi and Papua. In Riau province alone, the moratorium will protect up to 700,000 hectares of natural forest. The Indonesian government will adopt a 9-point action plan to ensure the successful implementation of the partnership agreement and moratorium. The action plan entails setting up a forum to communicate and address concerns regarding the moratorium within the private sector. In addition, consultations at federal and regional levels will be held to create support and synergy between the federal government and local governments. There are wide spread concerns among the industry and civil society on how to ensure the wood supply. In this regard, the issue of raw material supply for the Indonesian timber products industry in a sustainable way must be addressed, say analysts.
| Indonesia Log Prices |
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| Indonesia logs, domestic prices | US$ per m³ | |
| Plywood logs | Face Logs | 192-235 |
| Core logs | 173-206 | |
| Sawlogs (Meranti) | |
183-244 |
| Falcata logs | |
150-184 |
| Rubberwood | |
62-86 ⇑ |
| Pine | |
165-204 |
| Mahoni (plantation mahogany) | |
474-502 |
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| 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 | |
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| 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 |
| |
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| 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 | |
| |
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| 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 | |