Indonesia is known for its abundance of natural resources, and one of the most significant is its timber. The country’s timber industry contributes significantly to the economy, with plywood being one of the most exported products. In this article, we will take a closer look at the export of plywood from Indonesia in 2016.
The Plywood Industry in Indonesia
The plywood industry in Indonesia has a long history, and it has been a significant contributor to the country’s economy for several decades. Indonesia has a vast supply of raw materials, including timber and other resources required to produce high-quality plywood. The plywood industry in Indonesia is located primarily in Sumatra, Java, and Kalimantan.
The Indonesian government has supported the plywood industry by providing incentives and policies that encourage the production and export of plywood. The country has implemented a comprehensive system of regulations and standards to ensure that the plywood industry operates sustainably and responsibly.
Export of Plywood from Indonesia in 2016
In 2016, Indonesia exported approximately 10.54 million cubic meters of plywood, which generated a revenue of USD 1.57 billion. This was a decrease from the previous year, where the country exported 11.03 million cubic meters of plywood, generating USD 1.42 billion in revenue.
The primary export destinations for Indonesian plywood in 2016 were Japan, China, South Korea, the US, and Taiwan. These countries accounted for more than 70% of Indonesia’s plywood exports.
Factors Affecting Plywood Export from Indonesia in 2016
Several factors affected the export of plywood from Indonesia in 2016. One of the main factors was the global economic slowdown, which resulted in lower demand for plywood in many countries. Additionally, the government of Indonesia imposed stricter regulations on timber harvesting and processing, leading to a decrease in the supply of raw materials.
The price of plywood also played a significant role in the export volume. In 2016, the average price of Indonesian plywood decreased by 6.9% compared to the previous year. This was due to the decrease in demand and an increase in supply in the global market.
The Future of Plywood Export from Indonesia
The export of plywood from Indonesia is expected to continue to grow in the coming years. The country has a vast supply of raw materials and a robust plywood industry, which is supported by government policies and incentives. Indonesia has also been expanding its export markets, with a focus on developing countries in Africa and Asia.
The government of Indonesia has also been implementing policies to ensure that the plywood industry operates sustainably and responsibly. This includes efforts to combat illegal logging and promote reforestation. These policies are expected to strengthen the competitiveness of Indonesian plywood in the global market.
Conclusion
The export of plywood from Indonesia is a vital contributor to the country’s economy. Despite the challenges faced in 2016, the industry is expected to continue to grow in the coming years. The government of Indonesia has been implementing policies to ensure sustainable and responsible forestry practices, which will strengthen the competitiveness of Indonesian plywood in the global market.
