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Indonesia: Fear of cheap imports
febbraio 04, 2010
The Indonesian Furniture Producers Association has welcomed the government's reaction to its request for consideration to be given to delaying the full implementation of the FTA with China amid fears that hundreds of thousands of Indonesian workers in the wood processing sector could lose their jobs.

According to the Association, cheap furniture imports from China could overwhelm local manufacturers. They quote an example where a computer table made locally from particleboard sells for about US$65 while an imported Chinese made table of similar material could sell for about US$45. The Association added that the FTA between ASEAN and China could result in huge job losses at major Indonesian furniture manufacturers.

Debt for nature
The US embassy in Jakarta announced the official start of negotiations between the US and Indonesia for the second debt-for-nature agreement under the US Tropical Forest Conservation Act (TFCA) which finances tropical forest conservation. According to a US Embassy press release, the TFCA authorises the reduction, as well as, the re-scheduling of certain foreign debts to support tropical forest conservation in eligible development countries, such as Indonesia.

The US Treasury Department has allocated a provision of over US$19 million for the realignment of eligible foreign debts. The first TFCA agreement between the US and Indonesia was, signed on June 30, 2009. It reduced Indonesia’s debt payments to the US by nearly US$30 million over an eight year period.

The agreement was the largest debt-for-nature swap under the TFCA, made possible both through the contributions of US$20 million by the US federal government and a US$2 million by Conservation International and the Indonesian Biodiversity Foundation (KEHATI). Up to 13 countries have reportedly entered into a debt-fornature agreement under the TFCA with the US to date.

Indonesia Log Prices
Indonesia Log Prices
Indonesia logs, domestic prices US$ per m³
Plywood logs Face Logs 187-230
Core logs 169-202
Sawlogs (Meranti)
178-239
Falcata logs
147-181
Rubberwood
51-75
Pine
160-199
Mahoni (plantation mahogany)
468-495

Indonesia Sawnwood Prices
Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill) AD 3x12-15x400cm 176-195
KD 198-232
AD 3x20x400cm 219-242
KD 223-250
Keruing (Ex-mill) AD 3x12-15x400cm 234-248
AD 2x20x400cm 221-239
AD 3x30x400cm 204-223

Indonesia Plywood Prices
Indonesia ply MR BB/CC, FOB
US$ per m³
2.7mm
392-449
3mm
349-390
6mm
328-370
MR Plywood (Jakarta), domestic
9mm
250-261
12mm
242-252
15mm
231-245

Other Indonesia Panel Prices
Indonesia, Other Panels, FOB
US$ per m³
Particleboard Export 9-18mm 215-224
Domestic 9mm 191-203
12-15mm 185-196
18mm 175-187
MDF Export 12-18mm 249-262
Domestic 12-18mm 231-242

Indonesia Added Value Product Prices
Indonesia, Mouldings, FOB
US$ per m³
Laminated Boards Falcata wood 297-309
Red Meranti Mouldings 11x68/92mm x 7ft up

Grade A 484-518
Grade B 440-461
(ITTO's Tropical Timber Market Report)


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