Logs of plantation woods against global economic crisis

Tropical timber are well known to the markets caused of it were sold, have superior and consistent handling, strength and appearance characteristics. For plywood or block board, some species are preferred, such as okoume’ ( Aucoumea klaineana ) of Africa, most of all meranti ( Shorea sp) in Southeast Asia and virola ( Virola sp) in South America.

The extensive of exploitation to these species in Asia, Africa and Latin America affected the existing of these being rare. Consequently price of items which use the tropical timber as raw material increase gradually.

Facing Global economic crisis

Nowadays in many countries global economic crisis’s has yet to fully impact all sectors of the log and lumber industries. However, lower growth forecasts for

an economy in developed countries is certain to slow manufacturing and sales of furniture, which will impact demand for tropical timber. There has already been a downturn in sales of board products in Europe, due to problems in the building industries and lower demand from furniture manufacturers and exporters. By the way, Indonesia may be revising its export growth targets for 2009, since exports are expected to decline in line with the current financial crisis in the US. The government must be realistic about global economic conditions. The government needs to intensify export promotion campaigns to diversify markets and export products to non-traditional export destinations. While widespread declining commodity prices are affecting Indonesian exports, the fall of the Indonesian rupiah is also drawing investors to Indonesian forest plantations as an alternative to the receding financial markets. With long gestation periods and carbon trading schemes, plantation forests appear to fit in well with midterm to long-term investments.

According to ITTO Tropical Timber Market Report 13:19 1-15 October 2008

Indonesia Log Prices (domestic)

Indonesia logs, domestic prices US$ per m3

Plywood logs

Face Logs 235-275

Core logs 232-270

Sawlogs (Meranti) 196-223

Falcata logs 196-212

Rubberwood 218-242

Pine 210-233

Mahoni (plantation mahogany) 593-639

Those data shown above, can be concluded what log of plantation price exist in good condition. The global economic crisis not only give chance the forest for recovering it self but also give the plantation wood to penetrate the market.

Since 1989 Timber Estate or Hutan Tanaman Industri (HTI) begin to plant in South Kalimantan by more than 170,000 hectares. Some of HTI concession have harvested their plantation trees. South Kalimantan Plantation Log producers :

1). PT. Inhutani II

Product : Acacia mangium log, Albisia Logs

Address : Manggala Wanabakti Building

Jl. Gatot Subroto Jakarta, Indonesia ( Head Office)

Stagen Kotabaru , South Kalimantan ( Unit Office)

Indonesia

2). PT. Aya Yayang Indonesia

Product : Albisia logs, Gmelina arborea Logs

Address : Jl. Kapten Tendean No. 99/84 Banjarmasin South Kalimantan

Phone 62-0511-3252468

Indonesia