Indonesia continues to see growth in wood product exports to the US despite the impact of Covid-19.

Exports to the US increased by 16% year-on-year in the period from January 2020 to October 2020. The good performance of Indonesia’s wood products sector is not confined to exports to the US as January to October exports to the EU were also higher by around 10% year on year.

Indonesia’s wood exports to the US continues growing. Image credit: Timberindustrynews

Indonesia’s wood exports to the US continues growing. Image credit: Timberindustrynews

Indroyono Soesilo, Chairman of APHI (Asosiasi Pengusaha Hutan Indonesia), applauded the changes in tax and non-tax regulations introduced by the government in order to contribute to increasing exports. For example, the government has lowered the export duty on exports of from 15% to 5%. In addition to relaxing tariffs, the government has adjusted regulation and duties on processed merbau, white meranti and yellow meranti.

The Indonesian Furniture and Handicraft Association has indicated that output from the furniture sector is recovering despite the ongoing impact on demand of the pandemic. This is in contrast to the situation in the first quarter of the year when orders collapsed.

Regina Kindangen from HIMKI said that the Association members appreciated the stimulus measures provided by the government to SMEs in the home decor and furniture sectors. Kindangen says that SMEs are currently experiencing better times even though Indonesia is experiencing economic recession as it sees consumers in the importing countries have a high degree of willingness to spend on furniture and handicrafts. The domestic sector should get a boost from adoption of the Omnibus Law through which the government intends to reduce imports of goods that can be made domestically.