Indonesia: Prices decline despite slide of rupiah
News that China is gradually increasing its export tax
rebates for plywood sent jitters throughout the Indonesian
plywood industry, which is already struggling to cope with
the global economic downturn. Prices of Indonesian wood
products continue to decline sharply even as the Indonesia
rupiah depreciates against major traded currencies.
Nevertheless, the lower exchange rate has not been able to
encourage more buyers of Indonesia’s plywood.
According to The Jakarta Globe, the Indonesian
government is stepping up its effort to assist the industry
by creating a USD4.64 billion economic stimulus plan.
Indonesia is counting on infrastructure projects that will
help stimulate consumption within the local population.
However, layoffs within the Indonesian wood products industry are already taking place as several timber concessionaires and forest plantation owners begin curbing logging operations. With many development projects coming to a standstill in major cities across Indonesia, demand for logs is low due to a glut in sawn timber supply.
Pulp and paper industry to use wood from natural forests
Antara reported on the Indonesian forestry ministry’s reversal of an earlier decision to ban paper and pulp companies from harvesting wood from natural forests. The reversal was taken as the ministry was facing problems with a deficit in log supply from forest plantation projects for the pulp and paper industry, caused by some companies delaying the start of plantation projects and premature harvesting of plantations, causing greater uncertainty in wood supply. As a result, the ministry was forced to reconsider its policy of preventing pulp and paper companies from using wood from natural forests. The pulp and paper industry will now be able to use wood from natural forests, if supply from timber estates is not available.
Indonesia Log Prices
However, layoffs within the Indonesian wood products industry are already taking place as several timber concessionaires and forest plantation owners begin curbing logging operations. With many development projects coming to a standstill in major cities across Indonesia, demand for logs is low due to a glut in sawn timber supply.
Pulp and paper industry to use wood from natural forests
Antara reported on the Indonesian forestry ministry’s reversal of an earlier decision to ban paper and pulp companies from harvesting wood from natural forests. The reversal was taken as the ministry was facing problems with a deficit in log supply from forest plantation projects for the pulp and paper industry, caused by some companies delaying the start of plantation projects and premature harvesting of plantations, causing greater uncertainty in wood supply. As a result, the ministry was forced to reconsider its policy of preventing pulp and paper companies from using wood from natural forests. The pulp and paper industry will now be able to use wood from natural forests, if supply from timber estates is not available.
| Indonesia Log Prices |
||
| Indonesia logs, domestic prices | US$ per m³ | |
| Plywood logs | Face Logs | 194-237 ⇓ |
| Core logs | 173-206 ⇓ | |
| Sawlogs (Meranti) | |
182-243 ⇓ |
| Falcata logs | |
149-182 ⇓ |
| Rubberwood | |
36-62 ⇓ |
| Pine | |
163-202 ⇓ |
| Mahoni (plantation mahogany) | |
561-589⇓ |
| |
||
| Indonesia Sawnwood Prices | ||
| Indonesia, construction material, domestic | US$ per m³ | |
| Kampar (Ex-mill) | AD 3x12-15x400cm | 177-195 ⇓ |
| KD | 200-234 ⇓ | |
| AD 3x20x400cm | 226-249 ⇓ | |
| KD | 230-255 ⇓ | |
| Keruing (Ex-mill) | AD 3x12-15x400cm | 242-256 ⇓ |
| AD 2x20x400cm | 228-244 ⇓ | |
| AD 3x30x400cm | 206-225 ⇓ | |
| |
||
| Indonesia Plywood Prices | ||
| Indonesia ply MR BB/CC, FOB | |
US$ per m³ |
| 2.7mm | |
419-476 ⇓ |
| 3mm | |
375-416 ⇓ |
| 6mm | |
332-398 ⇓ |
| MR Plywood (Jakarta), domestic | ||
| 9mm | |
274-285 ⇓ |
| 12mm | |
265-275 ⇓ |
| 15mm | |
253-267 ⇓ |
| |
||
| Other Indonesia Panel Prices | ||
| Indonesia, Other Panels, FOB | |
US$ per m³ |
| Particleboard | Export 9-18mm | 224-235 ⇓ |
| Domestic 9mm | 192-204 ⇓ | |
| 12-15mm | 183-194 ⇓ | |
| 18mm | 173-185 ⇓ | |
| MDF | Export 12-18mm | 269-281 ⇓ |
| Domestic 12-18mm | 248-259 ⇓ | |
| |
||
| Indonesia Added Value Product Prices | ||
| Indonesia, Mouldings, FOB | |
US$ per m³ |
| Laminated Boards Falcata wood | 324-336 ⇓ | |
| Red Meranti Mouldings 11x68/92mm x 7ft up | ||
| |
Grade A | 523-559 ⇓ |
| Grade B | 477-498 ⇓ | |