RI secondary processed plywood exports may rise
RI secondary processed plywood exports may rise
JAKARTA (JP): Forest industrialists are optimistic that
Indonesia's exports of secondary-processed plywood will increase
this year, but fear that a lack of raw materials will hinder
further growth.
A. Tjipto Wignjowiprajitno, the executive chairman of the
Association of Indonesian Wood Panel Producers, said the
production of secondary-processed plywood -- which includes
products such as fancy plywood teak, or plywood with teakwood
layers -- was bound to go up, but would need high-quality
teakwood logs with wide diameters.
"Currently only 18,000 to 20,000 cubic meters of our annual
teakwood production of 750,000 cubic meters meet this quality,"
Tjipto said.
He hinted that Indonesia might resort to using imports from
countries such as Myanmar, but pointed out that the international
market often imposed boycotts on products made of Myanmarese
teakwood.
Last year, Tjipto said, secondary processed plywood made up 14
percent of the country's total plywood exports of 8.7 million
cubic meters.
Major importers of fancy plywood teak include China and
countries in the Middle East.
Tjipto said that apart from the problem caused by the lack of
raw materials, wood processing companies were also facing
marketing problems.
The government has, since last year, repeatedly called on
plywood manufacturers to restructure their facilities and to
anticipate future shortages of raw materials.
Minister of Forestry Djamaludin Suryohadikusumo predicted
earlier this year that the volume and exports of Indonesia's
plywood production would probably be stagnant due to a lack of
raw materials caused by the decline of the standing stocks of
natural forests.
Manufacturers were therefore encouraged to engage in wood-
based businesses which used small-diameter logs, such as medium
density fiberboard and particle board plants.
According to the Central Bureau of Statistics, Indonesia's
exports of plywood dropped by 11.95 percent to US$3.7 billion in
1994 from $4.2 billion in 1993. In the first seven months of last
year, exports fell again by 14.15 percent to $1.98 billion from
$2.3 billion in the same period of 1994.
Plywood manufacturers blamed the decline on the low price of
plywood on the world market.
Tjipto acknowledged that last year was a "difficult" year for
the country's plywood industry.
"But that is quite normal. I am sure 1996 will be better,
especially with the recovery of Japan's economy," he said.
Japan is one of the major importers of Indonesian plywood. The
others are China, the United States, Canada, and European
countries.
Tjipto predicted earlier this year that plywood exports would
increase in value by 7.5 percent to reach US$4.29 billion.
He also predicted the total value of Indonesia's forestry
product exports to rise by 7.25 percent from $6.87 billion last
year to $7.36 billion this year. (pwn)