New certification system to take effect in September
The Jakarta Post reported that by 1 September 2009, a new certification system would be in place for the country’s log and wood products produced by local companies. The Institute of Independent Evaluators and Verifiers (LPVI) will be responsible for issuing certificates for these products as well as standardization documents to licensed holders of forest management units, production forests and community forests. The system will apply to Indonesian products sold domestically and internationally. Until now, the Board for the Revitalizing the Forest Industry (BRIK) has been in charge of issuing certification documents for exported products and will continue to do so until LPVI is ready to take over BRIK’s responsibilities. Unlike BRIK, LPVI will comprise more non-governmental, independent and professional experts.
Ministries wrangle over rattan quotas
Uncertainty continues to prevail over quotas imposed on rattan exports involving the Indonesian Trade Ministry and the Industry Ministry, reported The Jakarta Post. The quotas imposed under a new regulation, which constitutes the fourth revision of a 2005 regulation, have remained unchanged despite mounting calls to reduce or completely ban rattan exports in order to address the acute shortage of the raw material. However, Industry Minister Mr. Fahmi Idris indicated that the quotas could be amended as the new regulation was still undergoing further revision.
The Industry Ministry reveals that the country produces 600,000 tons of raw rattan annually, which represents 75% to 80% of the world’s total production. Sumatra, Kalimantan, Sulawesi and Papua are the main rattanproducing regions in Indonesia. The Indonesian Furniture Entrepreneurs Association (Asmindo) said the local annual demand for the commodity amounts to 300,000 tons.
The Industry Ministry and Asmindo, which represents rattan producers and craftsmen, have called on the Trade Ministry to curtail raw rattan exports further, while the Indonesian Rattan Furniture and Craft Association (AMKRI) is demanding that the Trade Ministry should cease issuing export permits for the commodity. AMKRI Chairman Hatta Sinatra commented that the country might not be able to meet local demand, estimated at up to USD300 million, if the government did not curtail exports of rattan.
|Indonesia Log Prices
|Indonesia logs, domestic prices||US$ per m³|
|Plywood logs||Face Logs||187-229 ⇑
|Core logs||169-202 ⇑|
|Mahoni (plantation mahogany)||
|Indonesia Sawnwood Prices|
|Indonesia, construction material, domestic||US$ per m³|
|Kampar (Ex-mill)||AD 3x12-15x400cm||170-189|
|Keruing (Ex-mill)||AD 3x12-15x400cm||233-247|
|Indonesia Plywood Prices|
|Indonesia ply MR BB/CC, FOB||
||US$ per m³|
|MR Plywood (Jakarta), domestic|
|Other Indonesia Panel Prices|
|Indonesia, Other Panels, FOB||
||US$ per m³|
|Particleboard||Export 9-18mm||215-226 ⇑|
|Domestic 9mm||192-204 ⇑|
|Indonesia Added Value Product Prices|
|Indonesia, Mouldings, FOB||
||US$ per m³|
|Laminated Boards Falcata wood||299-311|
|Red Meranti Mouldings 11x68/92mm x 7ft up|