Apkindo to launch production control unit

Apkindo to launch production control unit

Fitri Wulandari, The Jakarta Post, Jakarta

The Indonesian Wood Panel Association (Apkindo) said on Monday
that a special unit, to be called the Production Control Body
(BPP), would start operating next month.

Apkindo chairman Martias was quoted by Antara as saying that
the BPP would help ensure the production volumes of plywood
companies in the country did not exceed the sustainable capacity
of the forests in providing raw material.

He said that in addition to helping protect the forests, the
setting up of the BPP was crucial for the survivability of the
local plywood industry. He did not elaborate.

Martias said the BPP would operate in five regions.

The first region would cover Aceh, North Sumatra, Riau, West
Sumatra and Jambi, while the second region would cover South
Sulawesi, Lampung and Jawa.

The third region would cover West Kalimantan, Southeast
Kalimantan and South Kalimantan, with the fourth region covering
East Kalimantan and Sulawesi. Finally, the fifth region would
cover Maluku and Papua.

He said that Apkindo members had expressed their commitment to
fully cooperating with the BPP, including supplying the necessary
data on output levels and the use of raw materials.

He added that the raw materials used by the industry would
first be approved by the BPP.

Martias said that the BPP's role would also extend to
analyzing the export market, including price developments
regarding the commodity.

Apkindo has set the plywood export target for 2002 at five
million cubic meters. "This figure is not much different from
last year's" he said.

At present, the price for plywood is around US$350 per cubic
meter, which is higher than the $230 achieved last month.