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)