Germany is the largest market in Europe for Indonesian rattan products

ITTO's Tropical Timber Market Report
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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
Indonesia Log Prices
Indonesia logs, domestic prices US$ per m³
Plywood logs Face Logs 207-250
Core logs 189-222
Sawlogs (Meranti)
Falcata logs
Mahoni (plantation mahogany)

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
MR Plywood (Jakarta), domestic

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
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