Indonesia responds to US government guidelines on certification
The Indonesian government acted quickly and positively
to set up a team of officials from various ministries to
address certification of the country’s timber products for
the US market, reported The Jakarta Post. The Trade
Defense Director of the Indonesian Trade Ministry, Mr.
Martua Sihombing, commented that the team will be
composed of officials from the forestry, trade, agriculture,
finance, foreign affairs, and industry ministries and
representatives from the various timber trade associations.
The team has been given the task to determine and identify
procedures and constraints outlined under the US Lacey
Act, which establishes new guidelines for certified timber
products entering the US market. By July 2009, all timber
products entering the US market must be certified by
entities approved by the US government. Indonesia’s
initial position will be known by 3 February 2009.
Sustainable Forest Management (SFM), Verification of Legal Origin (VLO) and the Chain of Custody (CoC) process will be addressed to meet the new guidelines. An exporter can choose to utilize any of the three certificates when exporting to the US. Indonesian Pulp and Paper Association (APKI) chairman, Mr. Mohammad Mansyur, said the Indonesian pulp and paper industry was ready to comply with the required US regulations. Indonesian Furniture and Handicraft Association (Asmindo) chairman, Mr. Ambar Tjahjono, added that certification was understandably necessary for wood products to compete successfully in the global market. Indonesia’s global exports of wood products stand at USD2.48 billion for the first 10 month of this year, down 3.9% from USD2.58 billion for the same period in 2007, according to the Indonesian Central Statistics Agency.
HSBC to scale back lending for forestry schemes in Indonesian and Malaysia
Reuters and The Guardian (UK) newspaper reported that environmental concerns have caused HSBC, a major British banking group, to scale down lending for forestry schemes in Indonesia. HSBC will sever ties with a third of forestry clients in Malaysia and Indonesia, including clients involved in palm oil, soy and timber by end 2009, according to Mr. Francis Sullivan, the bank’s advisor on the environment. HSBC is planning to terminate 30% of client relationships in the forest land and forest products sector in ‘high-risk’ countries, including Malaysia and Indonesia, due to non-compliance with HSBC’s forestry policy.
Indonesia Log Prices
Sustainable Forest Management (SFM), Verification of Legal Origin (VLO) and the Chain of Custody (CoC) process will be addressed to meet the new guidelines. An exporter can choose to utilize any of the three certificates when exporting to the US. Indonesian Pulp and Paper Association (APKI) chairman, Mr. Mohammad Mansyur, said the Indonesian pulp and paper industry was ready to comply with the required US regulations. Indonesian Furniture and Handicraft Association (Asmindo) chairman, Mr. Ambar Tjahjono, added that certification was understandably necessary for wood products to compete successfully in the global market. Indonesia’s global exports of wood products stand at USD2.48 billion for the first 10 month of this year, down 3.9% from USD2.58 billion for the same period in 2007, according to the Indonesian Central Statistics Agency.
HSBC to scale back lending for forestry schemes in Indonesian and Malaysia
Reuters and The Guardian (UK) newspaper reported that environmental concerns have caused HSBC, a major British banking group, to scale down lending for forestry schemes in Indonesia. HSBC will sever ties with a third of forestry clients in Malaysia and Indonesia, including clients involved in palm oil, soy and timber by end 2009, according to Mr. Francis Sullivan, the bank’s advisor on the environment. HSBC is planning to terminate 30% of client relationships in the forest land and forest products sector in ‘high-risk’ countries, including Malaysia and Indonesia, due to non-compliance with HSBC’s forestry policy.
| Indonesia Log Prices |
||
| Indonesia logs, domestic prices | US$ per m³ | |
| Plywood logs | Face Logs | 233-273 |
| Core logs | 195-221 | |
| Sawlogs (Meranti) | |
230-268 |
| Falcata logs | |
195-211 |
| Rubberwood | |
216-240 |
| Pine | |
198-231 |
| Mahoni (plantation mahogany) | |
571-614 ⬇ |
| |
||
| Indonesia Sawnwood Prices | ||
| Indonesia, construction material, domestic | US$ per m³ | |
| Kampar (Ex-mill) | AD 3x12-15x400cm | 241-248 |
| KD | 317-331 ⬇ | |
| AD 3x20x400cm | 332-345 ⬇ | |
| KD | 357-367 ⬇ | |
| Keruing (Ex-mill) | AD 3x12-15x400cm | 281-290 |
| AD 2x20x400cm | 269-278 | |
| AD 3x30x400cm | 274-283 | |
| |
||
| Indonesia Plywood Prices | ||
| Indonesia ply MR BB/CC, FOB | |
US$ per m³ |
| 2.7mm | |
463-491 |
| 3mm | |
406-463 |
| 6mm | |
385-409 |
| MR Plywood (Jakarta), domestic | ||
| 9mm | |
318-331⬇ |
| 12mm | |
298-317 |
| 15mm | |
293-321 |
| |
||
| Other Indonesia Panel Prices | ||
| Indonesia, Other Panels, FOB | |
US$ per m³ |
| Particleboard | Export 9-18mm | 241-251 |
| Domestic 9mm | 205-222 | |
| 12-15mm | 200-212 | |
| 18mm | 198-202 | |
| MDF | Export 12-18mm | 307-320 |
| Domestic 12-18mm | 255-275 | |
| |
||
| Indonesia Added Value Product Prices | ||
| Indonesia, Mouldings, FOB | |
US$ per m³ |
| Laminated Boards Falcata wood | 375-395 | |
| Red Meranti Mouldings 11x68/92mm x 7ft up | ||
| |
Grade A | 658-683 ⬇ |
| Grade B | 590-630⬇ | |