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(Dec 26, 2013) According to news reports, Indonesia is proposing to resume exports of logs from productive forests. This would reverse a ban on such sales that has been in place for 12 years. The Forestry Ministry plan would allow exports from community plantation forests or industrial forest concessions, as long as the businesses involved have certificates under a government verification system. The expectation is that this requirement will limit the scope of exports, despite the fact that no quota system would be imposed. Hadi Daryanto of the Ministry stated that because the "exports will be limited to companies fulfilling the certification requirement, thereby it will not happen on a massive scale." (Linda Yulisman, Govt Plan to Lift Ban on Log Exports Questioned, THE JAKARTA POST (Dec. 16, 2013); Editorial: To the Bottom of the Value Chain, THE
The plan to resume the exports followed a request from the Association of Indonesian Forest Concessionaires (Asosiasi Pengusaha Hutan Indonesia, APHI), seeking better prices and additional markets. Prices for domestic sales of logs have decreased, now reaching about US$30 per cubic meter, compared with US$80 elsewhere in the region. (Yulisman, supra.; APHI website (last visited Dec. 24, 2013).) The Association has suggested that unless the current ban on exports is lifted, only 5% of the forest concession holders will remain in business more than three years. If that constriction in the industry happens, other wood-based industries would be affected. (Editorial: To the Bottom of the Value Chain, supra.)
Both environmental activists and some representatives of wood-based industries oppose the resumption of log exports. The chair of the Indonesian Sawmill and Wood Working Association called it "one step back." She also asked, "[i]f we resume the exports, who will be able to guarantee an end to illegal log exports?" (Id.)
|Author:||Constance Johnson More by this author|
|Topic:||Forests and timber More on this topic|
|Import and export More on this topic|
|Natural resources More on this topic|
|Jurisdiction:||Indonesia More about this jurisdiction|
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Last updated: 12/26/2013