Indonesia: ICC urges swift construction of storage facilities

ITTO's Tropical Timber Market Report
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As noted in Tempo Interactive, the Indonesian Chamber of Commerce (ICC) urged the federal government to step up the construction of timber storage facilities for several provinces in Indonesia. Mr. Rahmat Gobel, vice-chairman of the ICC, noted the facilities would help reduce production costs and improve the competitiveness of the Indonesian furniture and handicraft industry. He added that timber storage facilities for East Java, Central Java, Sulawesi, and Papua would significantly reduce the amount of levies charged as well as facilitate certification of timber in storage facilities.

Sales of forestry equipment plunge for PT United Tractors
Sales of heavy equipment to the forestry declined sharply, with one of Indonesia’s major heavy equipment suppliers, PT United Tractors, announcing a 96% drop in sales. Similar declines in sales were recorded for the mining, agriculture and construction sectors, according to Antara News.

Indonesia Log Prices
Indonesia Log Prices
Indonesia logs, domestic prices US$ per m³
Plywood logs Face Logs 189-232
Core logs 170-203
Sawlogs (Meranti)
Falcata logs
Mahoni (plantation mahogany)

Indonesia Sawnwood Prices
Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill) AD 3x12-15x400cm 174-192
KD 196-230
AD 3x20x400cm 222-245
KD 226-251
Keruing (Ex-mill) AD 3x12-15x400cm 238-252
AD 2x20x400cm 222-240
AD 3x30x400cm 202-221

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 218-229
Domestic 9mm 191-203
12-15mm 182-193
18mm 172-184
MDF Export 12-18mm 261-273
Domestic 12-18mm 240-251

Indonesia Added Value Product Prices
Indonesia, Mouldings, FOB
US$ per m³
Laminated Boards Falcata wood 309-321
Red Meranti Mouldings 11x68/92mm x 7ft up

Grade A 504-538
Grade B 459-480
Bank Indonesia takes steps to safeguard Indonesian economy
Mr. Hartadi A. Sarwono, Deputy-governor of the Indonesian central bank Bank Indonesia (BI), commented that BI would not allow the Indonesian rupiah to depreciate in order to boost exports. As reported in The Jakarta Post, Hartadi said such measures would not necessarily boost demand for Indonesian goods. Moreover, this course of action could carry risks as well, as most of Indonesia’s foreign debts are in US dollars. According to The Jakarta Globe, BI has also signed a 100 million yuan (USD15 billion) currency swap with the People’s Bank of China. This is the largest currency swap ever signed by Indonesia. The swap agreement was expected to increase trade and direct investment between the two countries. According to statements released by BI, it will also help stabilize the Indonesian money market and ease foreign exchange liquidity.

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