Indonesia: Call for revamp on trade and export of rattan

ITTO's Tropical Timber Market Report
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The Indonesian Supervisory Commission on Business Competition (KPPU) urges the Indonesian federal government to revise the regulation on trade and export of rattan. According to KPPU, the supply of rattan had exceeded demand in the domestic market, thus hurting the livelihood of local rattan suppliers.

The Indonesian Rattan Businessmen Association (APRI) added that domestic consumption of rattan stands at about 40,000 tonnes per year, while production has reached 696,000 tonnes per year. Moreover, rattan processing in the country has declined over the few years, further weakening the demand for rattan.

The Ministry of Trade Indonesia enforced the regulation on trade and export of rattan on 11 August 2009. The regulation outlines the export ban of several species of rattan as well as limits the export volume of semiprocessed rattan to 35,000 tonnes. Furthermore, the regulation also requires that rattan producers and suppliers must obtain letters of approval from the local rattan industry declaring that they have met and satisfied the requirements of the local rattan market.

According to the APRI, the exports of rattan in excess of actual domestic production of finished rattan products should be facilitated. In addition, the requirement of a letter of approval is open to abuses and should be issued by governmental authorities instead of local industry bodies, says the APRI.

Indonesia exported a total of US$138 million worth of rattan products in 2010, down 21.5% from US$168 million recorded in 2009. Indonesia accounts for 82% of the world’s total rattan production and there are 300 rattan species found across the country.

Housing construction on the rise
The domestic timber industry and building material suppliers are reportedly benefiting from the integration of housing and development projects with economic growth centres in and around Jakarta.

In 2010, the Indonesian construction and housing sector grew 15%–20% from the level in 2009. Demand for housing from the middle-class and upper middle-class grew by 57% as incomes and living standards improved in the urban areas.

According to analysts, the only setback to the growth is the interest rates for housing loans which have to be scaled back in order to further stimulate the economy.

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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