The Chairman of the Association of Indonesian Forest Concessionaire (APHI), Indroyono Soesilo, has forecast an 8% increase in forest products exports next year which would lift export earnings from the sector to around US$13 billion.
Behind this positive assessment is the introduction of the Indonesia Timber Exchange (ITE) an online marketing and trading system for forest products all of which are certified under the Indonesia Timber Legality Verification System (SVLK).
Indroyono has expressed optimism that investment in the forestry sector will continue to grow as the issue of forest fires is being addressed seriously and the management of peat lands, frequently subject to fires, has improved.
In a recent meeting with APHI, Siti Nurbaya Bakar, the Minister of Environment and Forestry commented that timber sector exporters performed well this year despite global uncertainties. She noted that the value of processed timber exports in 2017 was US$10.94 billion but that by October this year that figure had been overtaken.
In Indonesia log production from plantations is around 6 times more than from the natural forest and was 38 million cubic metres in 2017.
Natural forest logs come mainly from the provinces of Central Kalimantan, East Kalimantan, North Kalimantan, Papua, and West Papua.
Industrial plantations are found in Riau, Jambi, East Kalimantan, West Kalimantan and Central Kalimantan provinces.