Indonesia
The Indonesian Plywood Association recently reported that plywood exports from the country
have been declining. It was estimated that 2001 exports amounted to about 6.0 million
cubic metres a 35% drop compared to the bumper 1997 exports of slightly over 8.0 million
cubic metres. Other startling statistics reveal that imported plywood
accounted for a significant proportion of the domestic market. It was also reported that
the imported plywood came from China and from neighbouring Malaysia.
Various factors have attributed to the decline of the Indonesian plywood industry. The
main was the return to log exports which, it is said, drove up illegal logging activities.
Another factor cited by the association was security concerns in some areas.
Illegal logging activities when log exports were allowed deprived the domestic industry
of logs while providing a cheap source of raw materials for the log importing countries.
In addition to the above problems the plywood industry says it is facing difficult
times in securing support from local banks which are being asked to provide the investment
capital for retooling as well as working capital injections. As a result of the various
problems faced by the industry it was reported that out of the 115 local plywood factories
about 35 have closed or have drastically scaled down their operations. The loss of jobs in
the sector is adding to the burden of unemployment in the country. |
