Output from Indonesia’s timber sector fell around 10% in April

The current pandemic has put enormous pressure on Indonesian timber companies which have found the flow of orders from international markets has collapsed, reported ITTO.

The Chairman of the Association of Indonesian Forest Concessionaires (APHI), Indroyono Soesilo, said that output from the timber sector fell around 10% in April and that he expects a steeper decline in May.

He commented that action by the government in relaxing a range of regulations to ease the burden on companies is helping with maintaining the work force.

He proposed some further steps including expanding the implementation of the Timber Legality Verification System (SVLK) at the global level, strengthening market intelligence for Indonesian manufacturers, arranging business meetings and trade missions, and boosting the function of the Indonesia Timber Exchange (ITX).

The Indonesian Ambassador to South Korea, Umar Hadi said the potential for expansion of Indonesian processed wood products sales based on SVLK to South Korea offers opportunities as South Korea has a law on ‘Sustainable Use of Timber’. In addition, he said South Korea’s economic growth depends heavily on international trade.