Indonesia may lift log export ban
2 May 2013Indonesian media reports suggest the country is considering ending its log export ban to encourage the development of plantations.
The International Tropical Timber Organisation's latest market report said the log export ban, in place since 2001, resulted in a marked decline in log prices according to the Association of Indonesian Forest Concessionaires.
Plantation logs are currently fetching US$30-40/m3, which is lower than the regional average because plantation pwners can only sell into the competitive domestic market.
The Indonesian Ministry of Forestry wants to boost international trade in its plantation timber so it can meet its plantation creation targets.
The ban was originally intended to crack down on illegal logging, but Indonesia has made progress since then, including the implementation of a timber legality verification system (SVLK).
