Indonesian log prices drop to $70 per cubic meter<\/p>\n
JAKARTA (JP): The price of Indonesian logs dropped sharply to
\nabout US$70 per cubic meter in the second half of last year due
\nto sluggish demand in overseas markets, according to the
\nAssociation of Indonesian Forest Concessionaires.<\/p>\n
The association's executive director, Hendro Prastowo, said
\nyesterday the drop in demand for logs had forced Indonesian log
\nproducers to cut prices to $70 per cubic meter from the average
\nprice of $92 per cubic meter in the first half.<\/p>\n
He said the regional monetary crisis, which also affected
\nbuyers such as Japan and Korea, had resulted in a decline in the
\nregional property sector.<\/p>\n
\"The monetary crisis has hit the property sector in Japan,
\nChina and Korea. Since most logs and wood products are used by
\nthe property business, the demand for logs and wood has also been
\naffected,\" he said.<\/p>\n
He said demand from Japan, the biggest importer of Indonesian
\nlogs and wood, had significantly dropped due to a delay in
\nproperty projects in the country.<\/p>\n
Other importing countries, like China and Korea, had also cut
\ntheir import of Indonesian wood paneling, he said.<\/p>\n
He said the falling price of logs in the international market
\nhad resulted in a drop in domestic prices.<\/p>\n
He said the monetary crisis had also hit the local property
\nsector which resulted in declining demand for logs.<\/p>\n
\"Even the local wood industry can't take on the currency
\ncrisis, even though prices are lower, because demand for wood
\nproducts has been sluggish,\" he said.<\/p>\n
Minister of Forestry Djamaludin Suryohadikusumo said last week
\nthe value of wood and wood-related exports in 1997 was likely to
\ndrop by 25 percent to $6.24 million from $8.3 million in 1995 due
\nto lowered demand.<\/p>\n
Timber tycoon Mohammad \"Bob\" Hasan, who is also chairman of
\nthe Association of Indonesian Wood Panel Producers, urged
\nIndonesian wood producers to maintain the market despite relaxed
\ndemand and the drop in prices of wood products.<\/p>\n
\"We have to keep exporting our wood to prevent other countries
\nfrom taking away our market share,\" he said.<\/p>\n
Djamaludin said yesterday that his ministry, in cooperation
\nwith the Ministry of Industry and Trade, had set up a
\ncoordinating team for the forest products industry to boost
\nIndonesian wood exports.<\/p>\n
\"The team will comprise the Association of Indonesian Wood
\nPanel Producers, the Association of Indonesian Furniture and
\nHandicraft Producers and other wood-related associations,\" he
\nsaid.<\/p>\n
He said his ministry was trying to boost the export of sawed
\ntimber and furniture, because the industry absorbed a lot of
\nworkers. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesian-log-prices-drop-to-70-per-cubic-meter-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}