Wood Industry in Indonesia
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Wood processing industry for export markets began to be developed by the company in Indonesia in 1986 in accordance with Government policy that prohibits the export of logs and sawn timber export permit only and other processed wood, like furniture, laminating board, wood panels and other products.
Development of the furniture industry can be seen from the value of timber exports of finished goods in 1986 amounted to U.S. $ 99 million and in each following year either to U.S. $ 527 million in 1997.
Consumer sawn timber of the largest domestic housing sector and the construction sector. Then, since 1986 a new downstream industries began to be established, for example from wood furniture industry molding and laminating, etc..
Consumption of domestic wood processing is greater than that exported wood products, although exports of processed wood products is very potential to be developed.
Demand overseas for household furniture and goods of wood components, and increased fairly steadily from year to year. In periods of economic crisis that struck Indonesia today, the increase in exports of goods with high added value is one step to overcome the crisis.
Wood processing industry are labor intensive to create job opportunities and can also hold purchasing power (consumption) in an area where export companies are located.
Subsector wood processing industry that produces furniture and wood components for the export market has a very good business prospects, because the raw materials, labor and most of the other production factors originating from within the country.
Almost the entire production of export goods from the timber industry are shipped to buyers abroad of pelabuan big-city port on the island of Java, from Jakarta, Cirebon, Semarang and Surabaya. The main target of the domestic market of processed wood products are domestic companies and institutions on the island of Java.
Most of the companies engaged in wood processing sub-sector is small and medium scale companies. About 80% of the company is located in the northern part of Java island, because labor is available in large quantities and cost of adequate wages.
Because of limited production capacity and market opportunity is greater than its production capacity, manufacturers of finished goods processed timber scale UM / UB is exporting its production, had long worked with wood pengarajin groups.
Since the government launched a partnership program between medium or large business with small businesses, the opportunity to create an integrated partnership project between the two parties would be the focus of government and business world wood processing industry.
What remains an obstacle, the wood industry in Indonesia is still relying on imported machines from various countries, especially Japan, Taiwan, China, Malaysia, Germany, and Italy, because the wood processing machinery industry in Indonesia is still weak.
However, Indonesia has the prospect of industrial development, especially wood furniture is very large, after China and Vietnam. It is estimated that after the boom in demand for furniture from China and now turn to Vietnam, then the next Indonesian who became a major furniture-producing countries.
Therefore, Indonesia must manage their forests well with the principles of environmental sustainability and continuity, given the export destination countries such as the European Union and the United States, consumers really pay attention to sustainable forest management.