Players of the forestry were optimistic export of Indonesia’s forestry products would increase after the implementation of some regulations which supported export of Indonesian woods to some countries. Suryo Bambang Sulisto, Chairman of the Indonesian Chamber of Commerce (KADIN) disclosed to Business News in Jakarta on Monday (7/5/2012); he stated that export of Indonesian legal wood to Europe rose by 25% this year before application of Certification of Verification of Wood before application of Certification of Verification of Wood Legality (SLVK) which would be effective next year. Suryo disclosed that each year Uni Europe imported wood and paper worth USD 1.2 billion from Indonesia which constituted 15% of Indonesia’s total wood export.
Player of the forestry industry, according to Suryo,
needed to strengthen competiveness because the Union European Timber
Regulations would be effective as per March 2013 so wood legality would be
needed. As known today, 210 wood producers in Indonesia had pocketed the SLVK
certificate as pre-requirement for export of wood. The policy was meant to be
put in effect in Europe would affect competitiveness of our forestry products”
Suryo was quoted as saying.
The Indonesian Chamber of Commerce (KADINI), Suryo said,
set target to be no 1 player in forestry industry in 2030. This was to consider
that Indonesia had strong comparative advantage. According to Suryo, KADIN
would strive to improve the forestry industry that it might grow better and
eliminate the perception that forestry was the sunset industry in the roadmap
and vision of 2030. He was optimistic that Indonesia could be the leading
player in that industry in the world because once Indonesia commanded over
plywood market in America, England, and Japan till 2001.
He rated that Indonesia had the potential to be the
leading player in the pulp and paper industry. Today the development of pulp
industry in the world was drifting from North America to Latin America and Asia
especially China and Indonesia. Unfortunately the business and investment and
most of the business players of the world tend to chose Brazil as their new
investment location. Yet the total area of industrial forest in Indonesia was
59 million hectares which could ne the resource of raw materials for pulp and
paper.
He predicted that Indonesia could be no 4 or no 5 player
in the pulp industry and no 8 player in paper industry by 2015 or even to be no
1 in pulp production replacing the USA in 2030 provided the Government
supported growth of the industry. Among the support expected from the
Government, Suryo said, was reformation in regulation, revitalization of
industrial machineries, capitalization, and infra structure development. “This
was indispensable and imperative if Indonesia aimed at becoming no 1 pulp
producer in the world” Suryo remarked.
He rated that the Government was still at least in
supporting the forestry sector. The result was that Indonesia’s competitiveness
in agriculture was way below China. Price disparity between Indonesian wood
products and that of China was also wide. Yet the forestry industry was reliant
on renewable resources so it could be highly prospective instead of otherwise.
According to Suryo, there were four natural resources which were highly
prospective, namely agriculture, forestry, fishery and plantation.
He disclosed that competitiveness was closely related to
regulations. The absence of a one-stop service center was one of the reasons
why disparity of competitiveness and pricing was so wide. Similarly as machines
were not revitalized it created problems of its own. Capital injection from
banks was also scarce, just as infra structure was inadequate which hindrance
production process and increase production cost. “As long as the incentives to
strengthen competitiveness was not fulfilled there is little hope that the
forestry industry would develop” Suryo concluded.
Business
News - May 11, 2012
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