Wednesday, 22 June 2011

Plywood Producers in East Kalimantan Unable to Meet Japan’s Demand

Plywood producers in east Kalimantan were having a landslide of order from Japan, who after the tsunami disaster were in need of plywood in enormous quantity for reconstruction. Price of plywood jumped up to USD 900 per cube M, a price record never reached before. Taufik, manager of the association of Indonesian wood producers stated in Jakarta.

Regretfully the big demand could not be fulfilled by plywood producers in west Kalimantaan. The main problem was the raw material. The best kind of wood to be processed was Meranti, but this type of wood was scarce and producers found it hard to get supply. Meranti wood could be substituted with Sengon wood quality was not the same. The USD 900 was the price for Meranti wood while Sengon wood was cheaper.
Data of Apkindo had it that demand for Indonesia wood for post-disaster rebuilding projects in Japan rose by 30%, but Indonesia wood exporters were unable to fulfill. Maximum capacity of Indonesian wood export to Japan was only 10% of total need of plywood in Japan. The demand for plywood in Japan was 8 million cube M while Indonesia could only supply 1 million cube M.

In Indonesia’s timber industry today, there were only 40 companies still operating another 90 companies had stop operations due to shortage of raw materials, or mis-management, or crisis etc. as Indonesia were unable to fulfill this great demand. China and Malaysia would grab the opportunity.

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