Plywood group wants ban on log exports<\/p>\n
JAKARTA (JP): The government should impose a ban on the export
\nof logs because unrestricted shipments in the last three years
\nhave starved local plywood manufacturers of their prime raw
\nmaterial, Bisnis Indonesia daily reported on Monday.<\/p>\n
Abbas Adhar, chairman of the Association of Indonesian
\nPlywood producers (Apkindo), said the government's decision to
\nslash the export tax on logs, from 200 percent to 10 percent
\nsince 1998, has led to a massive outflow of logs from the
\ncountry.<\/p>\n
Plywood producers in China and Malaysia have been using
\nIndonesian timber to increase their own exports in the last three
\nyears at a time when Indonesia's own plywood exports plunged,
\nAbbas was quoted by the newspaper as saying.<\/p>\n
The government was forced to slash export tariffs beginning on
\nFeb.1 1998 as part of its commitment to reform the economy in
\nreturn for a massive bailout program from the International
\nMonetary Fund (IMF).<\/p>\n
In spite of lower export tariffs, some Indonesian logs are
\nstill being smuggled out to reach foreign producers, Abbas said.<\/p>\n
Without government intervention over log exports and
\nsmuggling, Indonesia's plywood exports would continue to decline
\nin coming years, he said. (03)<\/p>",
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