ITTO: WOOD, CURRENT SITUATION IN_INDONESIA
Asia Observatory

06 September 2022

ITTO: WOOD, CURRENT SITUATION IN_INDONESIA

Further decline in exports to China anticipated Data from the ministry of forestry processed by the Indonesian Forest Concessionaires Association (APHI) shows log production during the first half of 2022 was stable.
Timber production from natural forests was recorded at 2.77 million m3, a slight decrease (2.8%) compared to the same period last year. Production from plantation forests was recorded at 24.9 million m3, also a slight drop (5%) compared to the same period in 2021.

The overall performance of the forestry sector in the first half of 2022 was positive. However, a decline in exports to China needs watching as China is one of the largest markets for Indonesian wood products.
Exports of wood products in the first half of this year reached US$8.35 billion, an increase of 12% compared to the same period in 2021. When compared to total exports in 2021, which amounted to US$13.57 billion, first half exports were over 60% of the previous yearly total. The three main wood products that recorded most growth were paper, pulp and wood panels with a value of US$2.43 billion, US$1.94 billion and US$1.91 billion respectively.
The export performance achieved was due to the growing demand in some of the main destination countries. However, exports to the largest markets, China, declined in the firs half of this year. Indonesia's wood product exports to China in January-July 2022 were recorded at US$1.78 billion, down 18.5% compared to the same period in 2021.
Data from the National Bureau of Statistics (NBS) of China showed that China's economic growth slowed in the second quarter of 2022. Indonesian enterprises are beginning to diversify markets so not to be dependent on only one country. In the first half of 2022 the value of Indonesia's overall exports to China was US$28.94 billion, equivalent to 21% of the total value of all Indonesian exports.
For wood products China is the main market ahead of Japan and the US For more information contact ITTO:

ITTO: Int’l Tropical Timber Organization
JP 2020-0012 NISHI-KV, Yokohama / Japan
E-mail: ti@itto.int
Ph. +81 45 2231110 
Fax+ 81 45 2231111

http://www.itto.int