Indonesia records fall in plantation log production

Plantation roundwood production in the first two months of 2019 fell 21 per cent compared to production in the same period in 2018 according to Purwadi Soeprihanto, Executive Director of Indonesian Forest Concessionaire Association (APHI). In 2018 roundwood production was 3.91 million cubic metres per month.

Purwadi said the decline in log production in early 2019 was a reflection of weaker demand for raw materials. Millers have said the on-going US-China trade conflict is affecting the performance of the main finished product exporters for whom plantation logs are the raw material.

Based on the V-Legal data from the Ministry of Environment and Forestry, in the first quarter of this year export of processed wood products totalled US$2.82 billion down 18 per cent year on year.  

Purwadi forecast that this year roundwood production from industrial timber plantation concessions (HTI) will increase 10 per cent compared to last year’s production of 40.13 million cubic metres while production from natural forests will be about the same as in 2018.

In related news, the Ministry of Environment and Forestry (KLHK) has announced it is not planning to issue new permits for industrial timber plantation concessions (HTI) this year. Hilman Nugraha, Director General of Sustainable Production Forest Management in the KLHK, said the current HTI permits covering 11.43 million hectares is sufficient to meet the industrial needs.