RI plywood exports drop due to falling demand
RI plywood exports drop due to falling demand
JAKARTA (JP): Weakening demand in the Japanese and Chinese markets has slashed Indonesia's exports during the first months of this year, an executive says.
"However, the strong demand in South Korea and the Middle East could compensate Indonesia's decreasing plywood exports to China and Japan," said Sudradjat DP, an executive of the Indonesian Chamber of Commerce and Industry (Kadin) and the Djajanti Group, a major producer of plywood.
Sudradjat was quoted as saying on Saturday by Antara that the Chinese reduced their plywood imports as a consequent of the recent introduction of a tight money policy.
He did not mention the volume nor the value of Indonesia's plywood exports to China and Japan.
Sudradjat said the decrease of Indonesia's plywood exports to Japan was caused by the "decline of Japan's housing starts".
However, he said that Indonesia continue dominating the world's plywood market, supplying about 85 percent of the world's plywood demands.
The country's wood panel exports last year reached 7.79 million tons worth US$5.47 billion, or 14.86 percent of the country's total exports of $36.82 billion.
Optimism
Due to higher prices, Sudradjat expressed optimism that this year's earnings from plywood exports will most likely reach last year's level in spite of the decline in the export volume.
He said that even though the demand is declining in China and Japan, demand is increasing in other parts of the world, including the Middle East and Africa.
"Djajanti Group, therefore, will increase sales to East and South African countries," the executive added.
Meanwhile, Mohammad (Bob) Hasan, Chairman of the Association of Indonesian Wood Panel Manufacturers (Apkindo), acknowledged to newsmen on Friday that Indonesia's plywood exports may decline by about 10 percent to 15 percent in volume this year.
Bob also said that the decreasing exports to some countries have also caused certain exporters, particularly those which fail to diversify their markets, to complain.
Bob's and Sudradjat's statements, in fact, came not long after rumors emerged among the Indonesian business circle which alleged that the Indonesian plywood exports are steadily declining due to rising competition from Malaysia.
According to the Statistical Year Book of Indonesia 1993 of the Central Bureau of Statistics, China and African and Middle- Eastern countries have never been major importers of Indonesian plywood.
The book highlighted Japan as the largest importer of Indonesian plywood, with total imports of 2.16 million tons valued at $1.58 billion last year, followed by South Korea with 918 million tons worth $649 million.(hdj)