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.