In 2019, VISI has predicted that the industry sector of wood processing will experience a growth rate of up to 2.63 percent or in other words an increase of 0.41 point when compared to the growth rate of 2018 of which was 2.22 percent. This is based on research and growth pattern of the sector in the past 8 years.
Based on the data processed by the Indonesia Forest Entrepreneurs Association (APHI), the sectorʼs contribution towards the income of the country has continued to grow and increase in the past few years. In 2018, the sector was able to make a new record of the highest foreign exchange achievement in the period of the last 10 years of which reached up to USD 12.5 Billion. The escalation of this is caused by government mental support as they alleviated the procedure of business management or the permitting that was welcomed by the players of this sector.
Another factor that may have impacted this positive outcome is the shift in using raw materials for the forestry industry from natural forests towards the Industrial Forest (HTI). This shift has impacted the forestʼs sustainability patronized along with the forestry business sector as HTI continues to experience growth rates alongside the availability of wood supply of up to 37 million cubic meters that they are able to use.
However, the Ministry of Environment and Forestry has said that the nominal stated is insufficient. As the reality is that there are still many spaces of the land that are yet to be maximally used. However, the positive perspective to this is it indicates how the prospect
the sector of wood is still able to be improved.
Other than that, the deficiency of issue that needs to be resolved is during the process of the productʼs buy and sell. Indonesian Sawmill and Wood Working Association (ISWA) has stated that the stagnancy value of Indonesiaʼs foreign exchange has been impacted by the low price of export. They have assessed the total export that the wood sector has processed in 2019 of which will remain the same as USD 2.1 billion as the export value in 2017 and 2018. This is caused by the increase in volume due to the productʼs price decrease. Based on the noted in 2018, up until December 2018, the price of processed wood products from wood plants was USD 210 per cubic meters. However, after undergoing research in 2019, there are still businesses that are selling wood for USD 190 per cubic meters. This will become a chore towards for business so that they are able to stabilize the market price.