Japan's policy on wood no threat to RI
JAKARTA (JP): Japan's plan to reduce wood imports will not affect Indonesia's wood industry, a business leader believes.
"We should not be worried about Japan's plan because Indonesia has been able to diversify its markets," Hendro Prastowo, vice chairman of the Association of Indonesian Forestry Companies (APHI), said here yesterday.
"Our exports of wood to China and Middle East countries, for example, are growing significantly and Indonesia is even successful in dominating tropical wood markets in the world," he said.
Hendro concurred that Japan is now in a strong position to slash its wood imports after successful replanting their for the last 30 years, with an estimated growth of 70 million cubic meters per year.
"With the reforestation scheme, Japan is optimistic to rely on its own wood by the 21st century," he said.
The Ministry of Forestry reported recently that the volume of Indonesia's plywood exports to Japan dropped to 1.76 million cubic meters in 1992-93 from 2.03 million cubic meters in 1991- 92. Its exports of panelboard to Japan also declined to 1.02 million cubic meters from 1.17 million cubic meters.
But the slack has been taken up by a growing hunger for Indonesian wood in other markets. Exports of plywood to China during the same period rose to 1.44 million cubic meters from 1.15 million cubic meters, while its exports to Middle Eastern countries rose to 379,001 cubic meters from 331,082 cubic meters. Its exports to other countries also increased from 2.29 million cubic meters to 2.64 million cubic meters.
According to the ministry, Indonesia's total exports of plywood in 1992-93 climbed to 6.93 million cubic meters from 6.53 million a year earlier. Its exports of panelboard also surged to 2.91 million cubic meters from 2.56 million cubic meters.
Hendro expressed optimism that "with its position as the largest exporter of wood in the world, Indonesia can hold the reins as a price leader on the world market."
For maintaining prices on the world market, Indonesia usually manages to keep equilibrium between supply and demand, he said.
However, he cautioned that Japan's policy on import reduction might be a business trick to force Indonesia's prices lower. (fhp)