Indonesia: Ministry of Trade - No to log exports this year

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The Indonesian domestic press is reporting that, according to Tuti Prahastuti, Director of Export of Agricultural and Forestry Products, the Ministry of Trade has no plans to allow log export this year despite the request from the Ministry of Environment and Forestry.

A review will be conducted by the Coordinating Ministry of Economic Affairs according to Tuti. The main concern is that natural resources should be utilized for the manufacture and export of downstream products.

Resistance to the log export proposal has come from furniture and wood product manufacturers who fear a decline in availability will lead to a surge in log costs as export logs attract high prices.

Log production set to rise

The Executive Director of the Association of Indonesian Forest Concessionaires (APHI), Purwadi Soeprihanto, has reported that first quarter 2018 log production was 10.62 million cubic metres, only slightly down on the level in the same period in 2017 (10.95 million cubic metres).

The dip in 2018 first quarter production was the result of bad weather which hampered logging according to Purwadi.

APHI is forecasting that roundwood production will increase from April when the dry season sets in and production will rise as log prices at present are good. APHI has suggested that roundwood production this year will be around 10% more than last year..

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I suggest that Trade dept. to do better study. Talking about downstream - what kind of wood species are they using ? Is it from Natural forest or from plantation ? Downstream is only using a few hard wood species such as Bengkirai, Merbau for flooring and decking products. Meanwhile, our natural forest has many species which can be exported.