Apkindo Demands Veneer Export Duty Cut

Indonesian Wood Panel Association (Apkindo) is waiting for the Industry Ministry’s decision to lower the export duty for the veneer. Apkindo hopes that the lower the export duty will hopefully boost the Indonesian veneer’s and plywood’s competitiveness in the global market. The Environment and Forestry Ministry has given the green light to the low export duty, but the Industry Ministry remains silent about it.

Indonesian veneer price is too high, about US$ 800 per cubic, while the price in the global market is usually between US$ 600-700 per cubic. The high price is the consequence of the government’s decision to impose a 15 percent export duty on it. As a result, the margin in the veneer business is relatively low because the exporters have to pay extra cost for export duty. On the other hand, the veneer oversupply in the domestic market has caused the price drop, and its value is even significantly lower in plywood production.