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)