RI's plywood exports to recover: Hasan

RI's plywood exports to recover: Hasan

JAKARTA (JP): Indonesia's plywood exports will likely recover
in the coming months after declining over the last three months,
chairman of the Association of Indonesian Wood Panel Producers
(Apkindo) Mohammad (Bob) Hasan says.

"There have been some declines over the last three months in
the volume and prices of plywood exports, especially those
destined to South Korea and China," Hasan told the Jakarta Post
here yesterday.

"But this is only a temporary trend," the timber tycoon said,
adding that plywood exports "will recover in due time."

Hasan, however, declined to disclose the figures of
Indonesia's plywood exports over the last three months nor their
price developments. "The figures are confidential because they
are crucial to our marketing strategies," he said.

Under Indonesian regulations, all international plywood
transactions must be conducted through Apkindo and its appointed
distributors.

Apkindo groups about 115 plywood companies.

Last year, Indonesia exported wood products worth nearly
US$5.5 billion, which accounted to almost 15 percent of the
country's total exports of $36.82 billion.

The Ministry of Industry announced on Monday that Indonesia's
exports of wood products increased by 10.33 percent to $2.42
billion during the January-May period from $2.19 billion in the
same period of last year.

Hasan, who is also chairman of the Nusamba Group, also stated
yesterday that China, which has recently introduced a tight money
policy, is reducing its plywood imports.

"As a result, they reduce their imports of our plywood quite
significantly," he said without citing specific figures.

Hasan argued that the Chinese market will recover as soon as
they control inflation. He believed that China's future economic
growth will stimulate a demand for housing which will lead to an
increase in the demand of plywood.

Korea

Hasan also acknowledged yesterday that Indonesia's plywood
exports to South Korea had declined over the last three months,
due mainly to that country's economic recession.

"The Koreans have reduced their domestic investment and
imports because they are also avoiding inflation," he said,
adding that the drop was "not much."

The timber tycoon also conceded yesterday that Apkindo had
recently slashed the prices of plywood exported to Korea because
the association wanted to maintain its market share in that
country.

"Our competitors have slashed their prices amid recession and
we, therefore, must also drop our prices to maintain our market
share," he said.

Hasan's statement indicated a new development in the
international competition of plywood trade since Apkindo stated
in August that, despite the allegations of Malaysia, Indonesia
had never sold plywood at cheaper prices than Malaysia.

Hasan also denied yesterday that, contrary to recent news
reports, the Korean buyers were not boycotting Indonesian
plywood.

He conceded, however, that some Koreans had made "hostile
statements" towards him and Apkindo.

"They are attacking us on grounds which have nothing to do
with the quality of our products," Hasan said. "They are just
creating reasons for disturbing us."

The tycoon, however, said that he is well-prepared to go
through this recent problem.

"People have attacked me from all over the world. I'm used to
it," Hasan said, adding: "I have good lawyers."

The tycoon also said that besides China and Korea, the United
States, European countries, Kuwait and Saudi Arabia have also
dropped their orders for Indonesian plywood.

He insisted, however, the decline in those markets will be
compensated by Japan's steady market and increasing purchases by
Hong Kong, Taiwan, Yemen and the United Arab Emirates.

"In short, there is nothing to worry about," said Hasan. (hdj)