Indonesia: Debate rages on forest concession moratorium

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Officials at Indonesia’s Forestry Ministry have said the country should continue with its ban on the issuance of new forest concessions to fully participate in international efforts on climate change mitigation.

However, the proposal to extend the government moratorium on granting concessions, which comes to an end in May, is being opposed by some who say the extension of the ban will hurt the economy.

National media reports say that some Indonesian politicians are calling for a freeze on the Reforestation Fund if a decision is made to continue the moratorium.

The challenge to continuation of the moratorium is being supported by the Agriculture Ministry and the palm oil and mining sectors that fear this is a business unfriendly policy which risks weakening economic growth.

The Agriculture Ministry would prefer, say media reports, to see stricter enforcement and new controls to protect peatland and primary forest areas rather than a ban on concessions.

A coalition of non-governmental environmental organizations has also entered the debate urging the government to remain firm in its commitment to protect the forests of Indonesia and uphold its commitment to reduce green house gas emissions by between 26 percent and 41 percent by 2020. The NGOs say that if the moratorium is not extended this goal cannot be achieved.

Several publications by the Center for International Forestry Research (CIFOR) also call for extension of the policy and document benefits that the policy has already brought.

International Furniture and Craft Fair Indonesia
The 2013 International Furniture and Craft Fair Indonesia (IFFINA) was held in Jakarta from March 11-14. The four-day fair featured over 500 domestic and overseas exhibitors.

The organizers expect business deals worth around US$400 million to be concluded this year.

Indonesia’s 2012 furniture exports grew over ten percent to around US$2 billion on the back of improved demand in US and European markets.

Meranti SQ US$ 255 – 250
Kapur SQ US$ 330 – 345
Keruing SQ US$ 250 – 270 Selangan Batu regular US$ 490 – 530

Speaking at the event the Industry Minister said last year’s exports to the US were worth over US$500 million while sales to Germany and the Netherlands were around US$200 million each.

Analysts remarked that demand was initially coming from the furniture replacement segment of the US market but, as US housing growth is expanding, demand is now also coming from the new home furnishing segment of the market.

To achieve growth in Indonesia’s furniture exports the government has indicated it will assist exporters seeking to diversify further into new markets in India, China and emerging economies in South America and Africa.

ASMINDO to assist members enter new markets
Commenting on the response of buyers at IFFINA a spokesperson from the Indonesian Furniture Industry and handicraft Association (ASMINDO) said that, because there was a 30 percent rise in the number of buyers visiting the fair especially those from non-traditional markets, an improvement in the export performance of the sector seems assured.

ASMINDO intends to work with its 700 members to plan penetration of non-traditional markets in South America and Africa without abandoning opportunities which have recently been created for Indonesia furniture in China, Malaysia and South Korea.

In other news ASMINDO is undertaking training on internal tracking for members in the Solo area to strengthen the capacity of members as they apply for the external audit required before enterprises can secure the timber legality license (SVLK)

Domestic Log Prices

Indonesia logs, domestic prices US$ per m³
Plywood logs
Face and core logs
240-270
Sawlogs (Meranti) 232-330
Falcata logs 110-270
Rubberwood 94-125
Pine 90-172
Mahoni (plantation mahogany) 135-385


Domestic Ex-mill Sawnwood Prices

Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill)
AD 3x12-15x400cm
KD
AD 3x20x400cm
KD

729
781
750
802
Keruing (Ex-mill)
AD 3x12-15x400cm
AD 2x20x400cm
AD 3x30x400cm

417
469
480


Export Plywood Prices

Indonesia ply MR BB/CC, export FOB US$ per m³
2.7mm 625
3mm 525


Domestic Plywood Prices

MR Plywood (Jakarta), domestic US$ per m³
9mm
369-405
12mm
350-423
15mm
303-432


Export and Domestic Other Panel Prices

Indonesia, Other Panels, FOB US$ per m³
Particleboard
Export 9-18mm
Domestic 9mm
12-15mm
18mm

175-205
225-275
215-233
205-224
MDF
Export 12-18mm
Domestic 12-18mm

278-293
210-280


Export Added Value Product Prices

Indonesia, Mouldings, FOB US$ per m³
Laminated Boards
Falcata wood

370-450
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
Grade B

520-551
478-500
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