Elements of the Indonesian wood products industry say they do not share their government’s confidence of exports growth in 2003.
The nation’s minister of trade and industry is reported to be predicting a 5% growth in export earnings next year due to an improvement in the global economy.
But the Indonesian Wood Panel Association (Apkindo) is expecting a weak performance, with plywood exports remaining flat mainly because of weak demand from the Japanese property sector. Plywood exports are estimated to stay at around this year’s figure, about US$2.2m.
Meanwhile, an agency has been set up by the government to ensure log supply to timber-related industries, in a bid to boost exports and solve raw material shortages.
The government believes a serious downturn could result in 4 million job losses if the supply problem remains unsolved.
