Indonesia: Reforestation in Jambi
Indonesia, together with Australia, has launched an A$30
million reforestation project in Sumatra in a bid to address
greenhouse gas emissions and introduce a carbon-trading
scheme under the REDD programme.
The project will be in Jambi Province in Sumatra and will be the second such project undertaken by the two countries. Funds will be used to restore forests in a province that is larger than the Netherlands and has lost more than 60% of its forests through illegal logging, slash and burn agriculture and clearing for oil palm plantations.
USAID helps interpret Lacy Act in Indonesia
USAID is working with the Forestry Ministry of Indonesia and various timber product and trade associations to help Indonesian timber companies better understand the US Lacey Act. Many Indonesian timber companies are still unfamiliar with the Lacey Act and welcome the assistance on how to prepare the various export documents required.
Timber tracking
USAID is also providing support for the development of a timber tracking system in Indonesia. This is to help operationalise a new Indonesian verification law that requires full documentation of the supply-chain for timber products from the point of harvesting to the processing of the product.
Positive signs in domestic housing sector
Some Indonesian real estate developers have voiced optimism that the national economy is showing signs of recovery and that will mean the housing market is set to improve.
Interest rates held steady
The Indonesian Central Bank has maintained the benchmark lending rate at 6.5% for the seventh straight month in order to promote more bank lending. In another move to aid the ailing construction sector, the National Electricity Board is offering developers substantial discounts for switching their account to industrial status.
With the current buoyant prices for agricultural commodities, especially palm oil, housing developers believe that the Indonesian economy is set to grow on a longer term basis.
Order books in better state
Timber traders and producers have reported that new orders are steadily arriving and plywood manufacturers share the same optimism as the housing developers. Further fuelling optimism is the view that orders for Indonesian plywood from Japan and South Korea are set to rise.
Indonesia Log Prices
The project will be in Jambi Province in Sumatra and will be the second such project undertaken by the two countries. Funds will be used to restore forests in a province that is larger than the Netherlands and has lost more than 60% of its forests through illegal logging, slash and burn agriculture and clearing for oil palm plantations.
USAID helps interpret Lacy Act in Indonesia
USAID is working with the Forestry Ministry of Indonesia and various timber product and trade associations to help Indonesian timber companies better understand the US Lacey Act. Many Indonesian timber companies are still unfamiliar with the Lacey Act and welcome the assistance on how to prepare the various export documents required.
Timber tracking
USAID is also providing support for the development of a timber tracking system in Indonesia. This is to help operationalise a new Indonesian verification law that requires full documentation of the supply-chain for timber products from the point of harvesting to the processing of the product.
Positive signs in domestic housing sector
Some Indonesian real estate developers have voiced optimism that the national economy is showing signs of recovery and that will mean the housing market is set to improve.
Interest rates held steady
The Indonesian Central Bank has maintained the benchmark lending rate at 6.5% for the seventh straight month in order to promote more bank lending. In another move to aid the ailing construction sector, the National Electricity Board is offering developers substantial discounts for switching their account to industrial status.
With the current buoyant prices for agricultural commodities, especially palm oil, housing developers believe that the Indonesian economy is set to grow on a longer term basis.
Order books in better state
Timber traders and producers have reported that new orders are steadily arriving and plywood manufacturers share the same optimism as the housing developers. Further fuelling optimism is the view that orders for Indonesian plywood from Japan and South Korea are set to rise.
| Indonesia Log Prices |
||
| Indonesia logs, domestic prices | US$ per m³ | |
| Plywood logs | Face Logs | 188-231 ⇑ |
| Core logs | 170-203 ⇑ | |
| Sawlogs (Meranti) | |
179-240 |
| Falcata logs | |
147-181 |
| Rubberwood | |
54-78 ⇑ |
| Pine | |
161-200 ⇑ |
| Mahoni (plantation mahogany) | |
468-495 |
| |
||
| Indonesia Sawnwood Prices | ||
| Indonesia, construction material, domestic | US$ per m³ | |
| Kampar (Ex-mill) | AD 3x12-15x400cm | 179-198 ⇑ |
| KD | 201-235 ⇑ | |
| AD 3x20x400cm | 221-244 ⇑ | |
| KD | 224-252 ⇑ | |
| Keruing (Ex-mill) | AD 3x12-15x400cm | 236-250 ⇑ |
| AD 2x20x400cm | 223-241 ⇑ | |
| AD 3x30x400cm | 206-225 ⇑ | |
| |
||
| Indonesia Plywood Prices | ||
| Indonesia ply MR BB/CC, FOB | |
US$ per m³ |
| 2.7mm | |
392-449 |
| 3mm | |
349-390 |
| 6mm | |
328-370 |
| MR Plywood (Jakarta), domestic | ||
| 9mm | |
251-262 ⇑ |
| 12mm | |
243-253 ⇑ |
| 15mm | |
232-246 |
| |
||
| Other Indonesia Panel Prices | ||
| Indonesia, Other Panels, FOB | |
US$ per m³ |
| Particleboard | Export 9-18mm | 215-224 |
| Domestic 9mm | 196-208 ⇑ | |
| 12-15mm | 188-199 ⇑ | |
| 18mm | 178-190 ⇑ | |
| MDF | Export 12-18mm | 250-263 ⇑ |
| Domestic 12-18mm | 232-243 ⇑ | |
| |
||
| Indonesia Added Value Product Prices | ||
| Indonesia, Mouldings, FOB | |
US$ per m³ |
| Laminated Boards Falcata wood | 298-310 ⇑ | |
| Red Meranti Mouldings 11x68/92mm x 7ft up | ||
| |
Grade A | 485-519 ⇑ |
| Grade B | 441-462 ⇑ | |