Indonesia’s APHI calls for lifting ban on log exports, reports ITTO

Published on : Wednesday, August 20, 2014

Cut-Logs-Edge-ForestThe Indonesian Forest Concessionaires Association (APHI) is appealing to the new government to allow the export of logs.

The chairman of APHI, Nana Suparna, said that because of the log export ban log prices have fallen and that the current price of logs from the natural forest is only about half the price of tropical logs in international markets.

In comparison, Nana Suparna said the selling price of meranti logs in Indonesia‟s domestic market is between US$120-130 per cubic metre while in the Japanese market
such logs are almost three times that price. For merbau the local market price is around US$300 per cubic metre while in the Chinese market merbau sells for  double that price.

Data from the Tropical Timber Market Report indicate that the wholesale price of merbau sawnwood in China is as high as US$1400-2200 per cubic metre while Indonesia‟s FOB price is less than US$600 per cubic metre.

Indonesia became a major log exporter when, as a result of a deal with the IMF, log export taxes were reduced but poor law enforcement resulted in excessive logging resulting in a ban on log exports in 2001.

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