Indonesia: More transparency on forest clearing moratorium

Source:
ITTO's Tropical Timber Market Report
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The 2 year moratorium on primary forest clearing and logging provided guidance to the plantation, energy and construction industries concerning green house gas emissions, while offering various forms of exemptions and concessions. The moratorium outlines the following:

• The moratorium mandates ministers and government officials to suspend the processing of all permits for logging and forest conversion purposes, including those for timber and palm oil, in primary forests and peatlands in the following government categories: conservation forest, protected forest and production forest. Permits however, are allowed for secondary forests, which have been affected by human and commercial activities.

• It will be enforced over two years and is open for extension. Its implementation will be overseen by a task force on Reducing Emissions from Deforestation and Forest Degradation (REDD).

• It covers up to 64.2 million ha. of primary forest and more than 30 million ha. of peatlands. No compensation will be offered under the moratorium to firms unable to expand in these areas, although the government has allocated another 35 million ha. of "degraded forest" for commercial development.

The moratorium provides the following exemptions:

• Firms with existing permits or have approval in principle from the forestry minister for permits to log and convert forest.

• Extension of existing permits.

• Projects to develop geothermal and other power plants, oil and gas fields, sugar and rice plantations.

• Ecosystem restoration

• The government will regularly update a map of its forests in a bid to correct overlapping permits in the sector. The map will be published to help investors clarify which forest areas are still on offer and which are not.

Indonesia Log Prices
Indonesia Log Prices
Indonesia logs, domestic prices US$ per m³
Plywood logs Face Logs 217-260
Core logs 202-231
Sawlogs (Meranti)
211-271
Falcata logs
179-214
Rubberwood
90-94
Pine
189-230
Mahoni (plantation mahogany)
494-524

Indonesia Sawnwood Prices
Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill) AD 3x12-15x400cm 202-221
KD 217-252
AD 3x20x400cm 238-261
KD 240-269
Keruing (Ex-mill) AD 3x12-15x400cm 253-267
AD 2x20x400cm 241-259
AD 3x30x400cm 224-243

Indonesia Plywood Prices
Indonesia ply MR BB/CC, FOB
US$ per m³
2.7mm
426-482
3mm
384-425
6mm
363-405
MR Plywood (Jakarta), domestic
9mm
281-292
12mm
273-283
15mm
263-277

Other Indonesia Panel Prices
Indonesia, Other Panels, FOB
US$ per m³
Particleboard Export 9-18mm 240-249
Domestic 9mm 220-232
12-15mm 214-226
18mm 210-221
MDF Export 12-18mm 270-285
Domestic 12-18mm 254-266

Indonesia Added Value Product Prices
Indonesia, Mouldings, FOB
US$ per m³
Laminated Boards Falcata wood 322-335
Red Meranti Mouldings 11x68/92mm x 7ft up

Grade A 515-546
Grade B 470-493
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