{
    "success": true,
    "data": {
        "id": 1163099,
        "msgid": "local-wood-industry-collapses-1447893297",
        "date": "2005-05-23 00:00:00",
        "title": "Local wood industry collapses",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Local wood industry collapses The Jakarta Post, Jakarta About two-thirds of the nation's wood-based industry has collapsed, with a \"high cost economy\" and aging machinery making them uncompetitive against more efficient economies such as China and Malaysia, said Indonesian Forestry Society (MPI). \"About 60 percent of the 115 wood-based manufacturers have collapsed.",
        "content": "<p>Local wood industry collapses<\/p>\n<p>The Jakarta Post, Jakarta<\/p>\n<p>About two-thirds of the nation's wood-based industry has<br>\ncollapsed, with a \"high cost economy\" and aging machinery making<br>\nthem uncompetitive against more efficient economies such as China<br>\nand Malaysia, said Indonesian Forestry Society (MPI).<\/p>\n<p>\"About 60 percent of the 115 wood-based manufacturers have<br>\ncollapsed. If there is no action in the next six months to<br>\nimprove the situation, more will follow suit,\" MPI chairman<br>\nSudrajat DP told Antara on Saturday.<\/p>\n<p>He said China and Malaysia have managed to establish more<br>\nefficient industries, thus producing cheaper products.<\/p>\n<p>Meanwhile, Indonesian producers had to bear numerous kinds of<br>\nfees, both legal and illegal, he said.<\/p>\n<p>\"Such fees comprise about 35 percent of total production<br>\ncosts,\" he said, adding that Indonesian end-product prices become<br>\nmore expensive due to the inefficient and aging machinery, which<br>\nconsequently need more operational costs.<\/p>\n<p>Moreover, local wood-based manufactures were stuck in<br>\nproducing only plywood, while Malaysia and China have focus on<br>\ndown-stream industries producing furniture.<\/p>\n<p>Sudrajat suggested that the government could help by assisting<br>\nthe industry to restructure their machinery and expand the export<br>\nmarket.<\/p>\n<p>The government should also solve the illegal logging problem,<br>\nhe said. As the government intensified measures against illegal<br>\nlogging, raw materials are now in short supply.<\/p>\n<p>The Ministry of Forestry has estimated that illegal trade in<br>\nforestry products from Indonesia to China alone, especially raw<br>\ntimber, over the past couple of years has reached some 9 million<br>\ncubic meters valued at Rp 18 trillion (US$1.86 billion).<\/p>\n<p>Sudrajat explained that after years of misconduct, it was hard<br>\nfor manufacturers to determine the legal status of forest<br>\nproducts.<\/p>\n<p>Consequently, many manufacturers were trapped into acquiring<br>\nillegal products and could not use them, as the authorities<br>\nforbid them to do so, he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/local-wood-industry-collapses-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}