Germany is the largest market in Europe for Indonesian rattan products
- February 13, 2011
- • Source: ITTO's Tropical Timber Market Report
- • Views: 7377
The largest furnishing exhibition in Germany, the imm
Cologne 2011, was held on 18 - 23 January 2011. The
Indonesian rattan industry made a comeback to the
exhibition after an absence of more than 25 years.
Altogether 12 Indonesian companies participated in the
exhibition.
At the exhibition, the Association of Furniture and Handicraft Rattan of Indonesia (AMKRI) signed two cooperation agreements: an exhibition cooperation agreement with the Köln Messe and an agreement for rattan design development programme with the German Furniture Design and Marketing Development Institution. Germany is the largest market in Europe for Indonesian rattan products with Euro 18.5 billion of exports recorded in 2008. In 2010, Indonesian rattan product exports to Germany grew 2.7% following the economic growth of 2.5% recorded from January to October 2010 in Germany.
Concern over raw material supply
As it was reported earlier, the 2-year moratorium planned to be implemented on 1 January 2011 in Indonesia has been postponed. Companies with logging permits obtained before 2010 are allowed to continue harvesting in primary forests. The level of harvesting is expected to be finalised during 2011.
However, the Indonesian Ministry of Forestry has recently ordered some timber companies to stop log harvests in natural forests with immediate effect. The Ministry of Forestry stresses the need to reorganise the management of the pulp and paper industry in order to meet the new conditions. Timber companies violating the order will have their permits revoked.
Concerns have been expressed whether relying solely on plantation forests for raw material supply is going to be enough for the Indonesian timber industry to maintain and develop its production. It is estimated that 50% to 60% of raw material supply for the Indonesian timber industry comes from natural forests.
The Indonesian timber industry is estimated to be worth US$16 billion and employing annually around 240,000 workers. In 2010, the industry contributed US$4 billion to state revenue, accounting for 6.1% of the total.
Indonesia Log Prices
At the exhibition, the Association of Furniture and Handicraft Rattan of Indonesia (AMKRI) signed two cooperation agreements: an exhibition cooperation agreement with the Köln Messe and an agreement for rattan design development programme with the German Furniture Design and Marketing Development Institution. Germany is the largest market in Europe for Indonesian rattan products with Euro 18.5 billion of exports recorded in 2008. In 2010, Indonesian rattan product exports to Germany grew 2.7% following the economic growth of 2.5% recorded from January to October 2010 in Germany.
Concern over raw material supply
As it was reported earlier, the 2-year moratorium planned to be implemented on 1 January 2011 in Indonesia has been postponed. Companies with logging permits obtained before 2010 are allowed to continue harvesting in primary forests. The level of harvesting is expected to be finalised during 2011.
However, the Indonesian Ministry of Forestry has recently ordered some timber companies to stop log harvests in natural forests with immediate effect. The Ministry of Forestry stresses the need to reorganise the management of the pulp and paper industry in order to meet the new conditions. Timber companies violating the order will have their permits revoked.
Concerns have been expressed whether relying solely on plantation forests for raw material supply is going to be enough for the Indonesian timber industry to maintain and develop its production. It is estimated that 50% to 60% of raw material supply for the Indonesian timber industry comes from natural forests.
The Indonesian timber industry is estimated to be worth US$16 billion and employing annually around 240,000 workers. In 2010, the industry contributed US$4 billion to state revenue, accounting for 6.1% of the total.
| Indonesia Log Prices |
||
| Indonesia logs, domestic prices | US$ per m³ | |
| Plywood logs | Face Logs | 207-250 |
| Core logs | 189-222 | |
| Sawlogs (Meranti) | |
201-262 |
| Falcata logs | |
165-199 |
| Rubberwood | |
81-85 |
| Pine | |
180-221 |
| Mahoni (plantation mahogany) | |
489-518 |
| |
||
| Indonesia Sawnwood Prices | ||
| Indonesia, construction material, domestic | US$ per m³ | |
| Kampar (Ex-mill) | AD 3x12-15x400cm | 194-213 |
| KD | 212-246 | |
| AD 3x20x400cm | 233-256 | |
| KD | 235-264 | |
| Keruing (Ex-mill) | AD 3x12-15x400cm | 247-261 |
| AD 2x20x400cm | 235-253 | |
| AD 3x30x400cm | 217-236 | |
| |
||
| Indonesia Plywood Prices | ||
| Indonesia ply MR BB/CC, FOB | |
US$ per m³ |
| 2.7mm | |
412-469 ⇑ |
| 3mm | |
369-410 ⇑ |
| 6mm | |
348-390 ⇑ |
| MR Plywood (Jakarta), domestic | ||
| 9mm | |
268-279 |
| 12mm | |
260-270 |
| 15mm | |
250-264 ⇑ |
| |
||
| Other Indonesia Panel Prices | ||
| Indonesia, Other Panels, FOB | |
US$ per m³ |
| Particleboard | Export 9-18mm | 230-239 |
| Domestic 9mm | 209-221 | |
| 12-15mm | 203-214 | |
| 18mm | 195-207 | |
| MDF | Export 12-18mm | 263-276 |
| Domestic 12-18mm | 245-257 | |
| |
||
| Indonesia Added Value Product Prices | ||
| Indonesia, Mouldings, FOB | |
US$ per m³ |
| Laminated Boards Falcata wood | 312-325 | |
| Red Meranti Mouldings 11x68/92mm x 7ft up | ||
| |
Grade A | 503-537 |
| Grade B | 459-481 | |