Thursday, November 4, 2010

Indonesian woodworking exports are decreasing


Indonesian woodworking exports are decreasing sharply. It because the economic conditions in Europe and the USA which has been the main export market has not recovered yet.

The Indonesian Sawmill & Woodworking Association (ISWA) estimates, woodworking export volume this year only 1.2 million cubic meters. The export volume was down 14.2 percent compared to last year's export volume which reached 1.4 million cubic meters.

Similarly, plywood, even though the volume down, value of exports, probably, will not sag away from last year that reached USD 957 million. The trigger is woodworking prices also increased slightly, from USD 665 per cubic meter in 2009 to USD 675 per cubic meter. "So, we estimate, the value of exports same as of 2009," said Soewarni, Chairman of the ISWA.

Soewarni explained, since the financial crisis plagued the USA in September 2008, woodworking wood consumption in the USA continued to decline. It happened because a lot of housing development projects stalled. Similar conditions also experienced a number of other export destination countries, like China, Japan, Australia, and Germany. "Since the crisis, it is difficult for us to expect an increase in export of woodworking, especially in terms of volume," said Soewarni.

Weakening demand for Indonesian woodworking in the world market, bring bad impact to exporters. According Soewarni, many exporters of woodworking is now out of business. "Of the 700 exporters are now only just over 600 exporters," he said.