Indonesia ready for the VPA

ITTO's Tropical Timber Market Report
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The Indonesian government is ready to sign the Forest Law Enforcement, Governance and Trade - Voluntary Partnership Agreement (FLEGT-VPA), with the European Union (EU) within the next two to three months, according to a joint statement. The Indonesian government noted that the VPA will be the first of its kind to be signed between an Asian country and the EU, with a significant implication for the US$1 billion annual timber trade between these two parties.

Disagreements hamper establishing legal framework for moratorium Last year, the Indonesian president signed an agreement with the Norwegian government the purpose of which is to halt deforestation. One of the first steps Indonesia took on signing was to impose a moratorium on forest conversions from 2011 to 2013. However, disagreements between the Forestry Ministry and the newly established Presidential Taskforce on reducing deforestation and forest degradation (REDD) programmes has hampered the government’s efforts to implement a legal framework for the moratorium.

It appears that there are differences of opinion on which forests should be included in the moratorium and whether the new Taskforce should be given authority to oversee forest management — traditionally the domain of the Forestry Ministry.

Tropical Forests Conservation Act Agreement between Indonesia and US
Indonesia and the US have signed a Tropical Forests Conservation Act Agreement which includes a grant to improve forest management and protect biodiversity in Sumatra. The agreement is said to be an important part of the USIndonesia Comprehensive Partnership. The US$30 million grant will help to improve management of 1.3 million hectares of peatland and forests over a three year period.

Indonesia Log Prices

Indonesia Log Prices
Indonesia logs, domestic prices US$ per m³
Plywood logs Face Logs 213-256
Core logs 196-227
Sawlogs (Meranti)   206-267
Falcata logs   174-209
Rubberwood   87-91
Pine   184-225
Mahoni (plantation mahogany)   492-522
Indonesia Sawnwood Prices
Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill) AD 3x12-15x400cm 199-218
KD 215-249
AD 3x20x400cm 236-259
KD 238-267
Keruing (Ex-mill) AD 3x12-15x400cm 250-264
AD 2x20x400cm 238-256
AD 3x30x400cm 221-240
Indonesia Plywood Prices
Indonesia ply MR BB/CC, FOB   US$ per m³
2.7mm   421-477
3mm   378-419
6mm   358-399
MR Plywood (Jakarta), domestic
9mm   276-287
12mm   268-278
15mm   258-272
Other Indonesia Panel Prices
Indonesia, Other Panels, FOB   US$ per m³
Particleboard Export 9-18mm 236-245
Domestic 9mm 215-227
12-15mm 209-220
18mm 205-216
MDF Export 12-18mm 266-281
Domestic 12-18mm 250-262
Indonesia Added Value Product Prices
Indonesia, Mouldings, FOB   US$ per m³
Laminated Boards Falcata wood 317-330
Red Meranti Mouldings 11x68/92mm x 7ft up
  Grade A 508-541
Grade B 464-487
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