Export problems face Kalimantan plywood plants<\/p>\n
JAKARTA (JP): Plywood plants in East Kalimantan, which
\ncontribute 25 percent to Indonesia's total plywood production,
\nare facing difficulties in exporting their products, an executive
\nsaid over the weekend.<\/p>\n
\"If the difficulties go on until the end of this year, 90
\npercent of the 23 plants operating in the province will probably
\nstop operation,\" said the chairman of the East Kalimantan chapter
\nof the Indonesian Forestry Society, B.S. Suba.<\/p>\n
According to the provincial trade office of East Kalimantan,
\nplywood exports from the province dropped by 23 percent to 1.6
\nmillion cubic meters last year from 2.1 million cubic meters in
\n1993.<\/p>\n
\"Hundreds of thousands of cubic meters of plywood are piled up
\nin companies' warehouses because the companies cannot export them
\nor sell them domestically,\" Suba said, Antara reported in
\nSamarinda.<\/p>\n
Suba noted that a number of plywood companies in South and
\nCentral Kalimantan have closed their plants due to difficulties
\nin marketing their products.<\/p>\n
He blamed the decline of plywood exports on Malaysia, which
\nundercuts plywood prices to steal part of Indonesia's market
\nshares.<\/p>\n
\"Malaysia can sell their plywood at lower prices because they
\nare not burdened with many levies and their export mechanism is
\nvery simple. Many of East Kalimantan's market shares in Japan
\nhave been taken over by Malaysia,\" Suba said.<\/p>\n
However, Suba did not directly relate the export difficulties
\nto the marketing monopoly of plywood by the Association of
\nIndonesian Wood Panel Producers (Apkindo).<\/p>\n
Minister<\/p>\n
In a hearing with the Trade and Logistics Commission of the
\nHouse of Representatives last week, Minister of Trade Satrio B.
\nJoedono faulted Apkindo's rigid marketing system for the drop in
\nthe country's plywood exports.<\/p>\n
Revenues from plywood exports fell by 8.4 percent during the
\nJanuary-October period of last year to US$3.49 billion from the
\ncorresponding period of 1993.<\/p>\n
Exports of wood products, mostly plywood, account for almost
\n16 percent of Indonesia's total export revenues.<\/p>\n
The leading company, PT Barito Pacific Timber, defended
\nApkindo's plywood export monopoly, saying it had led to higher
\nprices.<\/p>\n
Joso Abdullah Gotama of Barito noted that since Apkindo became
\nthe sole distributor of plywood in 1983, the prices of plywood
\nhad risen from less than $200 per cubic meter to more than $350.<\/p>\n
He said, although prices had recently fallen, his company did
\nnot feel it had lost out.<\/p>\n
The current price of $350 per cubic meter of plywood indicates
\na 37.5 percent drop from $560 in the third quarter of 1993.<\/p>\n
Indonesia, the world's largest plywood exporter, produces
\nabout 10 million cubic meters annually, most of which is exported
\nto Japan, South Korea and the United States.<\/p>\n
Official data shows that plywood exports to Japan for the
\nJanuary-October period of last year fell by 10.1 percent to $1.39
\nbillion for the same period of 1993, to South Korea by 26.2
\npercent to $379.6 million and to the United States by 7.9 percent
\nto $369.3 million.<\/p>\n
Minister Joedono noted that although Indonesia's exports to
\nthe three countries had decreased significantly, the demand from
\nthe three countries did not decline.<\/p>\n
Joso said that because the world demand for plywood still
\noverpasses the combined total production of Indonesia and
\nMalaysia, Apkindo's system will still be valid to be maintained.<\/p>\n
\"Because of the high demand, it is not necessary to create
\ncompetition in which we can kill each other,\" Joso said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/export-problems-face-kalimantan-plywood-plants-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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