Indonesian government wants high performance panel industry

Coordinating Minister for Economic Affairs, Darmin Nasution, says the government wants the Indonesian wood panel industry to get back into its top shape, according to Tempo, through the continued synergies between the industry, entrepreneurs and a secure source of raw materials through Industrial Plantation Forests (HTIs).

Meanwhile, the newly appointed chairperson of the Indonesian Wood Panel Association (APKINDO), Bambang Soepijanto, said APKINDO is ready to open new markets for national plywood exports and he called on all plywood industry players to make positive changes. This might include shifting the source of raw materials from natural forests to plantations; adjusting the scale of industries from large to small and medium-sized; upgrading production machinery from large rotary spindles to spindleless machines; and improving the types of product from raw plywood to high-quality specialty items.

Timber entrepreneurs finding loans difficult to obtain
APKINDO has complained about the difficulty faced by entrepreneurs in obtaining bank loans in, due to the requirements for collateral in the form of land rights. Outgoing APKINDO chairperson, Martinas, had asked the government to simplify the policy by providing fiduciary guarantees or the transfer of ownership rights for HTIs.

Exports of wood products reach US$11 billion
Indonesia exported more than US$11 billion in wood products by the end of November 2018 and this could top US$12 billion by year end (up from about US$10.75 billion in 2017), according to figures released by the Ministry of Environment and Forestry (KLHK).

KLHK Secretary General, Bambang Hendroyono, said plywood exports could reach US$3 billion in 2019. The Industry Ministry reported the value of 2018 furniture exports to end October at US$1.4 billion, up by 4.83 per cent over the same period in 2017.

On the other hand, reports that Soewarni, chairman of the Indonesian Sawn and Woodworking Industry Association, expects exports in his sector to remain stagnant this year at about US$2.1 billion, blaming the unstable global economic environment and a shortage of suitable raw materials.

One Map launched
Indonesian President Joko Widodo launched the government’s One Map Policy Geoportal (KSP Geoportal) in December, according to

The One Map Policy involves the creation of a detailed land-use map designed to help resolve overlapping tenure claims countrywide, including in forest areas.

Darmin Nasution, Coordinating Minister for Economic Affairs, said that, in developing the new map, the government had found many cases of overlapping land use, such as 10.4 million hectares of Kalimantan’s land area of 54 million hectares and 6.4 million hectares of Sumatra.

The Indonesian government will hold high-level meetings to decide how to resolve these overlaps.