Plywood exports expected to rise

JAKARTA (JP): Indonesia's plywood exports are expected to increase slightly this year due to rising demand from Japan, Taiwan, the United States, the Middle East and European countries, an industry executive said yesterday.

The chairman of the Indonesian Wood Panel Association, Mohammad (Bob) Hasan, told reporters that plywood exports are likely to reach 8.9 million cubic meters this year, as compared to 8,7 million cubic meters in 1995 and 8.9 million cubic meters in 1994.

"The most prospective market at present is Japan, which is building or restoring 1.5 million houses in Kobe, a city affected by earthquakes in January 1995," he said.

He contended that Indonesian plywood, which has met the Japan Agricultural Standard in quality, can compete against Malaysian products, which has not meet the standard, in the Japanese market.

"Our exports to Japan will be three times as much as Malaysian exports," he said.

Indonesia's plywood exports to Japan are projected to increase to 3.2 million cubic meters this year, from 3 million cubic meters last year, he said.

Hasan said Indonesia's plywood exports to the United States and Canada exceeded 400,000 cubic meters in the first half of the year, as compared to 793,489 cubic meters for the whole of 1995.

He acknowledged that demand in China and South Korea is declining in line with the weakening of their economies.

South Korea imported 950,370 cubic meters of plywood from Indonesia last year, he said. (jsk)