Indonesian government acts to alleviate impact of coronavirus on timber industry

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Susiwijono Moegiarso, Secretary of the Coordinating Ministry for the Economy, announced that in cooperation with other ministries, the government is preparing economic stimulus packages to address the impact of the coronavirus, reported ITTO.

A focus of measures proposed will be how to address the depletion of raw materials for manufacturers and exporters, said Susiwijono. It has been learnt that consideration is being given to simplifying the rules on export trade. These include changes to the Timber Legality Verification System (SVLK) for wood products, to phytosanitary certification and certification of origin. Also under consideration is the relaxing of import regulations for raw materials. The aim of the proposed measures is to accelerate imports and reduce logistics costs.

Call for easing restrictions on raw materials and ancillary products

In related news the Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Rosan Roeslani, specifically said it would be desirable to ease restrictions on both raw materials and ancillary products needed during manufacturing.

Rosan pointed out that supply chains have been disrupted due to the virus and this is a serious issue for manufacturers as it is difficult, in a short time, to find alternative sources previously supplied from China which accounts for a large proportion of raw materials and auxiliary goods supply to Indonesia.