Indonesia targets Australia as the next export frontier
Indonesia’s domestic legality verification scheme (SVLK) may not have helped the industry sell more wood products, according to the Indonesian Sawn Timber and Timber Manufacturers Association (ISWA).
Association Chairman Soewarni said that while the SVLK should boost exports and export prices this has yet been achieved. The value of exports in the first 10 months of 2017 was US$1.72 billion, compared to US$2 billion earned during the same period in 2016. However, he believes that the SVLK is able to enhance the image and competitiveness of Indonesian wood products in the future.
Krisna Pratama Astawa, vice chairman of Marketing from Bali’s Association of Indonesian Furniture and Handicraft Industries, also noted that exports have fallen about 50 per cent due to slow demand from Europe. The association’s members account for about 70 per cent of total exports from the island destination.
However Siti Nurbaya, Minister of Environment and Forestry, is confident that Indonesian wood products are now more competitive due to the SVLK.
Compared to 2016, production has risen and export sales to the EU have gone up, she said. The ministry is targeting Australia as the next big export market and the government is working to reach an agreement to recognise the SVLK as proof of legality.
Indonesia’s wood products are exported mainly to China, Japan and Australia.