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)