INDONESIAN EXPORT MARKET

            Indonesia is one of major sources of tropical timber products for the global market. While the production of plywood, sawn timber and veneer declined sharply during 1994-2010, pulp and paper production, woodchip and fiberboard increased significantly. Although not indicated in the table, furniture production, while small in terms of volume, is increasingly important in terms of export value. The export value of forest products increased from US$5.86 billion in 1994 to US$7.11 billion in 2010, but it’s share of total export values declined from 14.6% in 1994 to 4.5% in 2010.

            In 2010, the forestry sector was estimated to directly employ 3.76 million workers. This figure is, however different from estimates of labor absorption 231,000 workers, while small- scale industries absorbed 1.5 million people. According to the Trade Ministry, exports of timber and timber products- mostly furniture- increased by 114% to US$416 million in the first quarter of 2013, compared with $193.9 million in the same period last year.