Apkindo faulted for export drop<\/p>\n
JAKARTA (JP): Minister of Trade Satrio B. Joedono blamed the
\n'sole marketing' system of the Association of Indonesian Wood
\nPanel Producers (Apkindo) yesterday for the drop in the country's
\nplywood exports.<\/p>\n
\"I think Apkindo's sole marketing system should be revised,\"
\nJoedono told the House of Representatives.<\/p>\n
Joedono told the House Commission on Trade and Logistics that
\nexport revenue from plywood, a major foreign currency earner, had
\nfallen by 8.4 percent during the January-October period of last
\nyear to US$3.49 billion, as compared with the corresponding
\nperiod of 1993.<\/p>\n
Exports of wood products, mostly plywood, account for almost
\n16 percent of Indonesia's total export earnings.<\/p>\n
The minister said the drop was not the result of economic
\nrecession in major importing countries, such as Japan and South
\nKorea, as had been claimed by Apkindo. Rather, it had been caused
\nby the association's rigid marketing system, he said.<\/p>\n
\"The data shows that plywood demand in the three major
\nimporting countries -- Japan, South Korea and the United States
\n-- have not decreased. But our exports to these countries have
\nfallen significantly,\" Joedono said.<\/p>\n
Indonesia's exports of wood products to Japan for the January-
\nOctober period of last year fell by 10.1 percent to $1.39 billion
\nfrom the same period of 1993, to South Korea by 26.2 percent to
\n$379.6 million and to the United States by 7.9 percent to $369.3
\nmillion.<\/p>\n
A.A. Baramuli, an outspoken legislator from the ruling Golkar
\ngroup, demanded that Minister Joedono dismantle Apkindo's export
\nmonopoly and allow all plywood producers to export their products
\ndirectly to foreign importers without using Apkindo's trading
\narms.<\/p>\n
Joedono did not respond directly to Baramuli's demand, simply
\nstating that the government had challenged Apkindo to
\nreinvigorate plywood exports by improving its marketing system.<\/p>\n
Baramuli described Apkindo's trading system as totally wrong
\nbecause producers cannot export their products directly to
\noverseas importers but have to export them through Apkindo's
\ntrading arms in Singapore, Hong Kong and Japan.<\/p>\n
Subsidiaries<\/p>\n
In Japan, the biggest market for Indonesian plywood, Apkindo
\nhas operated a subsidiary called Nippindo since 1985 to
\ndistribute their products.<\/p>\n
Apkindo appointed Indo Kor as the sole export window to South
\nKorea and Sesil Trading Co. as the sole importer of Indonesian
\nplywood early last year, prompting many Korean buyers to turn to
\nMalaysian suppliers.<\/p>\n
The association has also set up other subsidiaries as its sole
\ntrading arms in Hong Kong, China, Europe and the Middle East.
\nAccording to its critics, this system lengthens the marketing
\nchain and unnecessarily adds to the price of plywood.<\/p>\n
Under the Apkindo system, plywood producers cannot export
\ndirectly. They must notify Apkindo's overseas offices of their
\nstock available for export. The trading arms, which receive
\norders from importers abroad, then distribute the orders among
\nthe producers and handle deliveries.<\/p>\n
Apkindo's marketing monopoly has rendered the marketing
\nmanagers of around 200 plywood companies idle and forced many
\nplywood firms to abandon any marketing promotion.<\/p>\n
Baramuli predicted that if the current plywood export system
\nis not dismantled Indonesia's plywood exports might drop by a
\nfurther $1 billion this year.<\/p>\n
He challenged the commission to cooperate with other House
\ncommissions to exercise their parliamentary right to investigate
\ncases involving the public interests.<\/p>\n
At the close of the hearing Joedono said: \"The approach
\nadopted by the House and that adopted by the government might be
\ndifferent, but the essence is the same. We want to solve the
\nproblem in the national interest.\" (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/apkindo-faulted-for-export-drop-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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