BUSINESS

Indonesia’s forestry exports begin to recover despite COVID-19
July 15, 2020

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JAKARTA (FORESTHINTS.NEWS) - The Indonesian Environment and Forestry Ministry has delivered the good news that there has been a recovery phase in the export performance of Indonesian forest-based industry products, starting in June this year, despite the impact of the global COVID-19 pandemic.

The export performance of the country’s forest-based industry products dropped to a level of minus 8.3% in the January-May 2020 period compared to the same period last year, but has since recovered significantly to minus 4.96%, as measured from January-June this year.

These figures represent an impressive 3.34% improvement in the export performance of these products from June this year, a remarkable achievement in the midst of the ongoing pandemic.

Although the growth is still below zero it is not dropping further, thus indicating that export performance is on a positive track.

This was conveyed by the Ministry’s Secretary General Bambang Hendroyono in a technical briefing with FORESTHINTS.NEWS (Jul 14). He referred to real-time data used to evaluate the mid-year export performance of forest-based industry products in these very difficult months of the coronavirus outbreak.

The ministry presented two graphs to back up these first semester evaluation results, as shown below.



Remaining optimistic

The secretary general emphasized that Indonesia's timber legality assurance system (SVLK) has also contributed to the enhanced export performance of forest-based industry products.

"In the next three months, we are targeting an even further recovery in the export performance of forest-based industry products to bring it to a positive level as quickly as possible," he said.

He explained that this target is realistic because production in the upstream forestry sector has shown substantial growth in the middle part of 2020, especially from industrial forest plantations.

“We continue to aim for a positive linear relationship between production growth in the upstream sector (which continues to show a positive trend) and the export performance of forest-based industry products,” said the secretary general.

"Although the global COVID-19 pandemic is still ongoing, we are optimistic that export performance will soon be at a positive level, ensuring workers in the forestry sector are not seriously affected," he added.

These graphs, which show a positive trend in the upstream sector, in this case production from industrial forest plantations, also contribute to the ministry's optimism regarding an improvement in forestry product export performance to positive growth. 



Indonesian Environment and Forestry Minister Siti Nurbaya, the secretary general explained, is also targeting the attainment of a positive level in the export performance of forest-based industry products.

“In spite of the fact that export performance growth is not as stable as before COVID-19, our minister is still targeting getting it to a positive level. To this end, we will continue to monitor developments while ensuring our continued alignment with forestry business associations,” he said.

More optimism from the business sector 

Mirroring the ministry’s optimism, Indroyono Soesilo, Chairman of the Association of Indonesian Forest Concessionaires (APHI), said that judging by the positive trend in export performance as of July this year, there is optimism that a positive level can be achieved. 

“This quarter the trend is getting better. As such, we are targeting positive export performance growth in the fourth quarter, even though, of course, this won’t be easy to achieve given the global COVID-19 pandemic situation,” he pointed out in a policy discussion with FORESTHINTS.NEWS (Jul 15).

He also explained that the Indonesian forestry business sector continues to expand its export base through enhancing value added with technological developments, bearing in mind that performance in the upstream sector as a source of raw materials continues to be positive and improving.

"Some of the countries that import Indonesia’s forest-based industry products have begun to revive amid the COVID-19 situation. Their revival will also be positive for our forestry product export trend, "he added.

The association chairman also expressed his gratitude for all the government’s efforts to support the recovery of Indonesia's forestry export performance, including the strengthening of the SVLK to cover not only issues of legality but also reinforced sustainability commitments. 

"Minister Nurbaya’s move to develop a multi-business system in existing forestry concessions, especially for non-timber forest product businesses, is very productive and also expands our engagement with local communities," he said in conclusion.



TAGS: EXPORTS , FORESTRY , COVID-19

RELATED STORIES


BUSINESS

Indonesia’s forestry exports begin to recover despite COVID-19
July 15, 2020

facebookfinal.png wafinal.png twitterfinal.png emailfinal.png

JAKARTA (FORESTHINTS.NEWS) - The Indonesian Environment and Forestry Ministry has delivered the good news that there has been a recovery phase in the export performance of Indonesian forest-based industry products, starting in June this year, despite the impact of the global COVID-19 pandemic.

The export performance of the country’s forest-based industry products dropped to a level of minus 8.3% in the January-May 2020 period compared to the same period last year, but has since recovered significantly to minus 4.96%, as measured from January-June this year.

These figures represent an impressive 3.34% improvement in the export performance of these products from June this year, a remarkable achievement in the midst of the ongoing pandemic.

Although the growth is still below zero it is not dropping further, thus indicating that export performance is on a positive track.

This was conveyed by the Ministry’s Secretary General Bambang Hendroyono in a technical briefing with FORESTHINTS.NEWS (Jul 14). He referred to real-time data used to evaluate the mid-year export performance of forest-based industry products in these very difficult months of the coronavirus outbreak.

The ministry presented two graphs to back up these first semester evaluation results, as shown below.



Remaining optimistic

The secretary general emphasized that Indonesia's timber legality assurance system (SVLK) has also contributed to the enhanced export performance of forest-based industry products.

"In the next three months, we are targeting an even further recovery in the export performance of forest-based industry products to bring it to a positive level as quickly as possible," he said.

He explained that this target is realistic because production in the upstream forestry sector has shown substantial growth in the middle part of 2020, especially from industrial forest plantations.

“We continue to aim for a positive linear relationship between production growth in the upstream sector (which continues to show a positive trend) and the export performance of forest-based industry products,” said the secretary general.

"Although the global COVID-19 pandemic is still ongoing, we are optimistic that export performance will soon be at a positive level, ensuring workers in the forestry sector are not seriously affected," he added.

These graphs, which show a positive trend in the upstream sector, in this case production from industrial forest plantations, also contribute to the ministry's optimism regarding an improvement in forestry product export performance to positive growth. 



Indonesian Environment and Forestry Minister Siti Nurbaya, the secretary general explained, is also targeting the attainment of a positive level in the export performance of forest-based industry products.

“In spite of the fact that export performance growth is not as stable as before COVID-19, our minister is still targeting getting it to a positive level. To this end, we will continue to monitor developments while ensuring our continued alignment with forestry business associations,” he said.

More optimism from the business sector 

Mirroring the ministry’s optimism, Indroyono Soesilo, Chairman of the Association of Indonesian Forest Concessionaires (APHI), said that judging by the positive trend in export performance as of July this year, there is optimism that a positive level can be achieved. 

“This quarter the trend is getting better. As such, we are targeting positive export performance growth in the fourth quarter, even though, of course, this won’t be easy to achieve given the global COVID-19 pandemic situation,” he pointed out in a policy discussion with FORESTHINTS.NEWS (Jul 15).

He also explained that the Indonesian forestry business sector continues to expand its export base through enhancing value added with technological developments, bearing in mind that performance in the upstream sector as a source of raw materials continues to be positive and improving.

"Some of the countries that import Indonesia’s forest-based industry products have begun to revive amid the COVID-19 situation. Their revival will also be positive for our forestry product export trend, "he added.

The association chairman also expressed his gratitude for all the government’s efforts to support the recovery of Indonesia's forestry export performance, including the strengthening of the SVLK to cover not only issues of legality but also reinforced sustainability commitments. 

"Minister Nurbaya’s move to develop a multi-business system in existing forestry concessions, especially for non-timber forest product businesses, is very productive and also expands our engagement with local communities," he said in conclusion.


TAGS: EXPORTS , FORESTRY , COVID-19

RELATED STORIES