Indonesia’s export of wood products continues to rise even though demand in China has weakened. However, a global recession would impact export growth. Data from Indonesia’s Ministry of Environment and Forestry (KLHK) analysed by the Association of Indonesian Forest Concession Holders (APHI) showed Indonesia’s wood product exports up to September earned US$11.07bn, a year-on-year rise of 13%.
Most growth came from an increase in exports of paper products at $3.15bn, wood panels at $2.63bn, pulp at $2.52bn and furniture at $2.15bn. Indonesia’s timber export trade depends on four main markets: Japan, the EU and UK, the US, and South Korea. A market that has recently been developed is India.
The growth in exports to India is promising and for the year to September there was a 35% year-on-year expansion. As of September exports to China were recorded at $2.36bn, a 21% decline from the same period in 2021.
Indonesia’s wood product exports to Japan in the first three quarters of 2022 increased 15% year-on-year to $1.14bn. Exports to the EU and UK rose 54% year-on-year to $1.3bn and exports to South Korea increased slightly to $585m.
Throughout 2022, export growth in the US market increased steadily but in September there was a downturn as wood product exports dipped 19% to $1.77bn. The decline in exports to the US was because of a drop in furniture exports which fell 40% from $1.41bn in January-September 2021 to $849.3m in January-September 2022.
Source: ITTO
