In Favor of the Trade War, Indonesia Exports 4,200 Containers of Plywood to the US
The trade war between the US and China has had a positive impact on light wood entrepreneurs in Indonesia. This year, at least 4,200 containers of light wood from Indonesia are exported every month to the US to replace products from China.
Indonesian Lightwood Association (ILWA) Chairman, Setyo Wisnu Broto, said that the demand came from two giant buyers in the US. Each absorbing 2,500 containers and 1,700 containers of lightwood.
“These two giant buyers are now leaving China and trying to enter Indonesia,” Wisnu said after holding a national working meeting in Solo, Tuesday (25/1/2022).
With such a large demand, ILWA is working with various stakeholders to plant up to 14 million cubic logs of light wood-producing trees each year across Indonesia. The available wood stock, according to him, will maintain the stability of production costs.
“Our market is getting wider. If it is not supported by a good supply chain, it cannot meet the demand, even the price of raw materials will rise,” he said.
One of the parties cooperating with ILWA is the Army Retirees Association (PPAD). The retired families will be trained in nursery, planting and producing goods from light wood.
“This cooperation is comprehensive, from breeding, planting, digitalization. ILWA will not only buy, but provide training to educate their families to have an entrepreneurial spirit, so that a product will be made. We will then connect them with our offtakers,” said Wisnu.
Wisnu assesses that the results of planting these trees will be beneficial to the community. This is because the light wood entrepreneurs are currently expanding the market which is still considered to have great opportunities.
“Our biggest demand comes from the US. In 2019, the light wood export market was worth USD 172 billion. But Indonesia has only exported USD 10.6 billion, meaning there are still many opportunities,” he said.
Meanwhile, PPAD central board member, Major General Retired Wiyarto, said that his party has a strong network of retired officers in every military command in Indonesia. By utilizing this network, his party will help develop light wood-producing trees.
“We have a wide network potential. So we complement each other. They have potential in business and markets, while we have the territoriality, it’s a good synergy,” he concluded.