Forestry Ministry seeks APHI
partnership for SFM
Agus Justianto, Director General of Sustainable Forest
Management at the Ministry of Environment and Forestry
has said it expects the Association of Indonesia
Concession Holders (APHI) to become the government's
partner in achieving the five pillars of sustainable forest
The five pillars are securing forestry areas, increasing
business productivity, optimising forest land, diversifying
forestry products and increasing product competitiveness.
The DG also urged forestry business to adopt the multibusiness
scheme set out in the government’s Job Creation
initiative. He reported there are 14 forest utilisation
business proposals for the application of the forestry
The chairman of APHI, Indroyono Soesilo, said that
facilitation of the Forest Utilisation Business Permit
(PBPH) is among the association’s seven strategic
programmes. The other programmes include accelerating
the implementation of the Job Creation Law, facilitating
the fulfillment of APHI members’ obligations regarding
forest management and deregulating taxes and levies.
Also included is strengthening marketing of wood
products, strengthening cooperation in the investment
sector and facilitating overlapping PBPH implementation
with non-forestry activities.
Concern on UK’s sustainability regulations
Coordinating Minister for Economic Affairs, Airlangga
Hartarto, recently met with the UK Ambassador to
Indonesia and several senior UK representatives and
expressed the hope of the Indonesia government is that the
UK plan for implementing sustainability standards on a
number of agricultural, plantation and forestry
commodities will not hinder the bilateral trade. Airlangga
said it is import to aligning the Indonesian timber
certification system with whatever plans the UK has.
Mangrove Project funding
The Indonesian government is committed to restoring and
protecting mangroves, including through collaboration
with various parties. One of them is the collaboration with
the World Bank through the Mangrove for Coastal
Resilience Program (M4CR). World Bank Managing
Director for Operations, Axel van Trotsenburg, expressed
his agreement that mangrove ecosystems make a
significant contribution to controlling climate change.
In related news, Vice-president of the European
Investment Bank (EIB) Group, Gelsomina Vigliotti said,
the Bank is ready to back the Indonesian government’s
plans to rehabilitate some 600,000 hectares of degraded
mangroves. As a leading financier of forestry projects
Vigliotti said the EIB Group supports the call by
Indonesian President Joko Widodo for the country to
transition towards a sustainable green economy.
Forest biomass for power generation
The President of PT Protech Mitra Perkasa Tbk and
Deputy Chairman of the Indonesian Chamber of
Commerce and Industry, Bobby Gafur Umar, believes that
Indonesia has great potential for biomass energy
production which would help achieve national energy
The area of Energy Plantation Forests (HTE) in Indonesia
is almost 1.3 million hectares and at least 32 business units
are ready to play a role in "processing" this vast area of
banks tough on timber trade transactions
According to timber exporters, banks in Singapore have
adopted tough measures to stop timber related financial
transactions. Singapore is known as a financial hub for
Myanmar businesses. Last year Singapore banks started to
halt transaction to Myanmar if it believed they were
payment for timber exports.
Initially, when EU and USA announced the sanction on
Myanma Timber Enterprise and the Forest Joint Venture
Corporation, Singapore banks stopped the transaction and
asked the remitters many questions. Recently companies
whose records show financial transactions related to the
timber trade have been asked to close their accounts.
In related news, it has been reported that the EU has
adopted further sanctions in view of the intensifying
human rights violations in Myanmar. The new restrictions
target companies providing substantive resources to the
The full list of the new designations is included as an
annex to the implementing regulation can be found at:
Oil and gas big earners
Since the coup Myanmar’s economy has collapsed. The
World Bank forecast that Myanmar’s GDP would likely
have dropped 18% in 2021 and Fitch has forecast a 4.4%
decline in GDP in 2022. Myanmar relies heavily on
income from exports of oil and natural gas. Gas
projects are expected to deliver US$1.4 billion or around
10% of Myanmar’s revenue in 2022.
Myanmar urged to adopt ASEAN ‘Five-Point
The Cambodian and Malaysian Prime Ministers called for
the “timely and effective implementation” of ASEAN’s
Five-Point Consensus on Myanmar. According to
the statement, the two leaders “underscored the critical
importance of ensuring the effective and timely
implementation of the Five-Point Consensus,” which was
reached at a summit of ASEAN leaders in April last year.
The consensus calls for an immediate cessation of
violence in Myanmar and the facilitation of dialogue
between all parties to the conflict, mediated by the
regional bloc’s special envoy, among other steps.
In related news, Japan’s Foreign Minister released a
statement 1 February saying “As today marks one year
since the coup d’état in Myanmar on 1 February last year I
express concern about the continued lack of action to
improve the situation. Japan takes this opportunity to once
again strongly urge the Myanmar military to take concrete
actions to immediately stop the violence, release those
who are detained and swiftly restore Myanmar’s
democratic political system.
JETRO survey - Most Japanese firms plan to stay in
According to a Japan External Trade Organization
(JETRO) report most Japanese companies that have
invested in Myanmar will either maintain or expand their
operations in the country.The report says 52% of Japanese
companies will maintain current levels of operations in
Myanmar, 13.5% will expand operations while around
28% will scale back business. The balance of companies
surveyed will pull out.
Omicron threatens to overwhelm health system
Myanmar could soon face a deadly fourth wave health
experts warn reports FrontierMyanmar. However, its
public health system has been weakened and barely half of
the adult population is vaccinated and this is with the
Chinese vaccines which are said to be less effective
against the Omicron variant.
Official figures from the Ministryof Health show that
around 53% of the adult population is partially or fully
vaccinated and few booster doses have been administered.
indices for January 2022
The Office of the Economic Adviser, Department for
Promotion of Industry and Internal Trade, has published
wholesale price indices for January 2022. The index for
manufactured products increased to 137.1 in January 2022
from 136.4 for December 2021.
Out of the main 22 manufactured products 18 groups saw
increases in prices while 3 decreased in January 2022
compared to December 2021. The increase in prices was
mainly contributed by basic metals, motor vehicles,
trailers and semi-trailers, machinery and equipment,
textiles and chemicals products. Some of the groups that
saw a decrease in prices were wood and of products of
wood and cork, tobacco products, pharmaceuticals along
with medicinal chemical and botanical products.
The annual rate of inflation was almost 13% in January
2022 compared to 2.51% in January 2021. The high rate
of inflation in January 2022 is primarily due to rise in
prices of mineral oils, crude petroleum and natural gas,
basic metals, chemical products and food.
High frequency indicators showing positive
KPMG in India has published its latest edition of “Indian
Economy Insights”. In introducing this publication, Neeraj
Bansal, a senior partner, provides a snapshot of the state of
He writes, “The Indian economy is gaining momentum,
driven by the recovery in industrial output, growth in core
sectors, coupled with fairly focused government initiatives
and policies. While the economy is reviving on the back of
ebbing effects of the second wave and rapid vaccination
drive, it is also witnessing a gradual momentum in some of
the highly distressed sectors.
Recent high frequency indicators are showing positive
signs, raising both business and consumer optimism.
Factors such as rail and freight activity, passenger traffic,
power consumption, e-way bills and Goods and Services
Tax (GST) collections are following a rising trend says
With a revival in demand and improvement in industrial
indices, the economy is observing positive sentiment
among financial institutions. Both Reserve Bank of India
(RBI) and International Monetary Fund (IMF) have
projected a 9.5 per cent GDP growth for the country in
The full report can be found at:
KPMG is a British-Dutch multinational professional services
network and one of the big four accounting organisations.
Decorative veneer flitches in short supply
Plyreporter, the Indian trade magazine has highlighted the
shortage of decorative veneer flitches from European and
North America saying the demand for walnut, oak, ash and
tulip in international markets has soared.
Plyreporter says “the domestic veneer industry is doing
their best to procure veneers and lumber at any cost and
the prices of finished products rise”.
Vietnam: Wood and Wood Product (W and WP) trade
According to Vietnam Customs in January 2022 W and
WP export turnover amounted to US$1.5 billion, up 8.3%
compared to December 2021 and 14.3% compared to
January 2021. In particular, the WP export reached
US$1.15 billion, up 6.8% compared to December 2021
and 6% compared to January 2021.
W and WP exporst to the UK in January 2022 totalled
US$30.7 million, up 11.6% compared to December 2021
and 48% compared to January 2021. The share of exports
to the UK accounted for 2% of Vietnam's total W and WP
export turnover, up 0.5% compared to January 2021.
In January 2022, exports of office furniture from Vietnam
valued at US$ 43 million, up 7.5% compared to December
2021, but down 10% compared to January 2021.
In January 2022, W and WP imports into Vietnam reached
US$ 250.1 million, up 13.3% compared to December
2021, but down 10.3% compared to January 2021.
In January 2022 Vietnam imported 49.2 thousand cu.m of
pine wood, worth US$ 15.3 million, down 9.3% in volume
and 8% in value compared to December 2021; compared
to January 2021, it increased by 6.7% in volume and 59%
The imports of wood from Southeast Asia to Vietnam in
December 2021 reached 87.0 thousand cu.m, worth US$
29.68 million, down 40% in volume and 55% in value
compared to November 2021 but increased by 1.7% in
value compared to December 2020. In 2021, Vietnam
imported 960,330 cu.m from Southeast Asia, worth
US$338.28 million, up 5% in volume and 49% in value
compared to 2020.
Imports from Southeast Asia increased slightly in 2021
Imports of wood from Southeast Asia to Vietnam in
December 2021 reached 87.0 thousand cu.m, with the
value of US$ 29.68 million, down 39.9% in volume and
55% in value compared to November 2021; down 18% in
volume, but increased by 1.7% in value compared to
December 2020. In 2021, imports of wood from Southeast
Asia reached 960.33 thousand cu.m, with the value US$
338.28, up 5.1% in volume and 48.8% in value compared
In 2021, the increase of wood imports from Southeast Asia
comes mostly from Cambodia and Laos. The growth of
imports from Laos accounted for 269% of the total
increase in imports of wood from this region. In contrast,
imports of wood from other sources such as Thailand,
Malaysia and Indonesia decreased against 2020.The
imports of wood from Cambodia and Laos are risky for
Vietnam's wood industry.
This risk is serious especially in the context of
VPA/FLEGT implementation with Vietnam’s
commitment to the EU to avoid illegally sourced wood
from the supply chain and the Vietnam - US Agreement to
improve wood legality.
Under VNTLAS, while importing wood from risky
sources, importers need to submit additional documents to
prove the legality of imported wood. They have to
exercise DDS to assess possible risks and take
countermeasures to assure legality of imported wood.
Thailand: Thailand is one of the major suppliers of
panels to Vietnam. Imports of this type of product
from Thailand in December 2021 reached 54,940 cu.m,
with a value of US$13.15 million, up 5% in volume and
15% in value compared to November 2021; down 19% in
volume and 3% in value compared to December 2020.
In 2021, imports of wood of various types from Thailand
amounted to 504,290 cu.m, with a value of US$119.30
million, down 12.5% in volume, but up 8.6% in value
compared to 2020.
Wood imported from Thailand is mainly of fibreboard and
particleboard, accounting for 96% of the total import from
this market. In 2021, fibreboard imports from Thailand
reached 312,200 cu.m, with a value of US$81.39 million,
down 16% in volume, but up 2% in value compared to
2020; particleoard imports volumed at 171,850 cu.m, with
a value of US$30.42 million, down 11% in volume and
19% in value.
Laos: Imports of logs and sawnwood from Laos in
December 2021 were reported at 20,670 cu.m, with a
value of US$12.70 million, down 74% in volume and 75%
in value compared to November 2021; up 35% in volume
and 34% in value compared to December 2020.
In 2021, imports of wood from Laos reached 223,780
cu.m, with a value of US$140.81 million, up 127% in
volume and 154% in value compared to 2020.
In 2021, sawnwood imports contributed 90% of total
imports from Laos reaching 201,000 cu.m, with a value of
US$136.19 million, up 152% in volume and 160.6% in
value compared to 2020; imports of log reached 17,090
cu.m, with a value of US$3.39 million up 35% in volume
and 63% in value compared to 2020.
Malaysia: In December 2021 imports of wood from
Malaysia were reported at 6,010 cu.m, with a value of
US$1.98 million, up 2.4% in volume and 8% in value
compared to November 2021; down 45.9% in volume and
29.1% in value compared to December 2020. In 2021,
imports of raw wood from Malaysia totaled at 143.56
thousand cu.m, with a value of US$ 48.77 million, down
5.4% in volume, but up 39.6% in value compared to 2020.
Particleboard and sawnwood were the major wood
products accounting for 93% of the total wood imports
from Malaysia to Vietnam in 2021.
Sawnwood imports, alone from Malaysia in 2021 reached
82,280 cu.m, with a value of US$33.52 million, up 290%
in volume and 234% in value compared to 2020; particleboard
imports reached 51,190 cu.m, with a value of
US$32.52 million, up 290% in volume and 234% in value.
Items of imported wood
The 3 top wood items imported from Southeast Asia to
Vietnam are fibreboard, particl-board and sawn wood. In
2021, imports of wood as raw material from Southeast
Asia to feed Vietnam’s wood industry increased mainly
due to the enlarged import of sawn wood from this
region. In contrast, imports of fiber-board, particleboard,
and sawn wood from Southeast Asia decreased.
Sawn wood imports: In December 2021, sawn wood
imports from Southeast Asia reached 28,260 cu.m, with
a value of US 15.36 million, down 67.0% in volume and
71% in value compared to November 2021; up 19% in
volume and 22.7% in value compared to December
2020. In 2021, sawn wood imports from Southeast Asia
reached 356,790 cu.m, with a value of US$157.40
million, up 1312% in volume and 95% in value
compared to 2020 accounting for 43% of the total
increase in lumber imports from this region.
Sawn wood imports from Southeast Asia increased
mainly due to the increased imports from Laos, reaching
61.08 thousand cu.m, with a value of US$ 36.94 million,
up 31,986% in volume and 30,710% in value compared
In addition to the supply from Laos, the sawn wood
imports from Malaysia, Cambodia and Thailand also
increased remarkably compared to 2020.
Fibreboard imports: Imports of fibreboard from
Southeast Asia in December 2021 amounted to 26,220
cu.m, worth US$8.05 million, up 57% in volume and
57% in value compared to November 2021; down 51%
in volume and 32% in value compared to December
In 2021, imports of this wood item from Southeast Asia
reached 331,520 cu.m, with a value of US$87.07
million, down 22% in volume and 5% in value
compared to 2020.
There were four Southeast Asian countries supplying
fibreboard to Vietnam in 2021: Thailand, Indonesia,
Malaysia and Singapore. Imports from these four
sources decreased against 2020. Thailand was the main
supplier of fibreboard to Vietnam, accounting for 94%
of total imports from this region in 2021, reaching
312,120 cu.m with a value of US$81.39 million, down
16.5% in volume, but up 2% in value compared to 2020.
Industry sets an export target of US$17.5 – 18 billion
Despite many challenges, the Vietnam Timber and Forest
Product Association has set a target for exports of
US$17.5 – 18 billion in 2022.
The Vietnam Timber and Forest Products Association
pointed out that the five main export groups of the wood
industry have good growth prospects in 2022.
“In 2022, the goal of the export wood industry will reach
17.5 – 18 billion USD. To achieve the goal of exporting
the wood industry in 2022, the main determined are still
commodity groups, in which, wooden chair will reach 4.1
billion USD; wooden furniture will reach 10 billion USD
and a number of other key commodity groups,” said
Chairman of the Vietnam Wood and Forest Products
According to the Ministry of Agriculture and Rural
Development, in order to achieve the new export target in
the face of rising raw material prices and increasing
logistics costs, domestic planted forests need to improve
productivity and quality to participate in the supply chain.
“The government issued Resolution 84 to implement a
sustainable forestry development programme. This is the
most important thing for the industry. If input is not much,
it must be sourced domestically. Assessment Forest
quality is important,” emphasised Deputy Minister of
Agriculture and Rural Development.
In addition, the wood industry is planning to solve the
problem of transportation costs by increasing the value of
each container according to packaging specifications and
brands. In addition, efforts to reduce the risk of origin
evasion and strictly implement the Legal Timber Trade
Agreement between Vietnam and the United States should
also be prioritised to promote export growth.
See: Vietnam: The wood industry sets an export target of 17.5 -18 billion
USD in 2022 - Woditex
Mato Grosso timber companies take
advantage of ‘hot’
The increase in prices and demand for native timber
species from sustainably managed forests has boosted the
timber industry in the state of Mato Grosso, one of the
main producing states of the Amazon region. Companies
are expanding production to meet the demand in the
Additionally, companies in the furniture sector in the state
of Mato Grosso are focusing on the manufacture of
furniture of higher added value using wood from natural
forests, mixing modern with rustic designs.
Small businesses create new jobs
A survey late last year by the Brazilian Micro and Small
Business Support Service (Sebrae) indicates that micro
and small businesses continue to be the main generators of
new job vacancies. According to the survey this group of
enterprises was responsible for 76% of job vacancies in
the country. Commerce was responsible for the creation of
116,700 jobs followed by services (98,700), construction
(16,700) and industry (15,200).
In the case of medium and large companies the largest
number of jobs was created in the service sector (80,800
jobs), followed by commerce (21,300). Agriculture,
industry and construction showed a negative balance for
Inflation drives furniture prices higher
According to the Consumer Price Index measured by
IBGE (Brazilian Institute of Geography and Statistics)
national furniture prices were driven higher because of a
2% increase in inflation in December 2021 compared to a
month earlier. As a result furniture prices closed 2021 up
16% year on which is high compared to the government’s
In order to control inflation, the Central Bank of Brazil has
been raising the basic interest rate, which reached 10.75%
in early February 2022. However, despite the impact of
inflation and slight drop in sales between January and
November 2021 the IEMI (Market Intelligence Institute)
reports an 8% increase in furniture retail sales in the 11
months of last year.
In January 2022 Brazilian exports of wood-based products
(except pulp and paper) increased 52% in value compared
to January 2021, from US$254.4 million to US$387.1
Pine sawnwood exports grew significantly 42% in value
between January 2021 (US$5.2 million) and January 2022
(US$49.8 million). However, export volumes fell 5% over
the same period in 2020 from 191,000 cu.m to 181,200
Tropical sawnwood exports increased 25% in volume,
from 31.100 cu.m in January 2021 to 39.000 cu.m in
January 2022. In value, exports increased 25.0% from
US$12.8 million to US$16 million over the same period.
Pine plywood exports witnessed a 58% increase in value
in January 2022 compared to January 2021, from US$51.1
million to US$80.9 million. Also the volume of exports
increased 31% over the same period, from 170,400 cu.m
to 222,900 cu.m.
As for tropical plywood, exports increased in volume
(68%) and in value (78%), from 3.800 cu.m (US$1.8
million) in January 2021 to 6.400 cu.m (US32 million) in
As for wooden furniture, the export value increased from
US$41.1 million in January 2021 to US$52.1 million in
January 2022, a 27% growth.
Pará and Santa Catarina State exports – 2022 off to a
In January 2022 timber exports from Pará State, one of the
major timber producing states in the Amazon, grew 110%
compared to January 2021 according to the Association of
Timber Industries Exporters of Pará State (AIMEX).
AIMEX considers the growth "significant" because,
although 2021 was a year of retraction for various sectors
of the economy due to COVID-19, exports in early 2021
exceed those of January 2020, prior to the pandemic, when
revenue from exports was around US$18 million.
AIMEX states that export earnings for almost all products
rose. In total international timber sales by companies in
Pará earned about US$37 million from more than 20,000
tonnes exported. The increase was largely the result of
increased export of flooring and decking and from a surge
in MDF exports.
About 70% of the products exported by the state of Pará
are processed added value products such as flooring,
decking, doors, windows, kitchenware among others.
Furniture export totalled US$899 million in 2021 of which
US$354 million was from manufactures in Santa Catarina.
In the state the furniture manufacturing companies of the
São Bento do Sul furniture cluster accounted for 54% of
these sales according to Brazilian Furniture Industry
Association (ABIMÓVEL), up 31% year on year.
The US was the largest buyers of furniture from Santa
Catarina (70%) followed by the UK (12%) and France
(6%) according to the Federation of Industries of Santa
According to Union of Construction and Furniture
Industries of São Bento do Sul (SINDUSMOBIL) the
positive export performance was the result of the high
product quality combined with compliance with
Exports to exceed US$64 billion this
The Minister of Foreign Trade and Tourism, Roberto
Sánchez, said Peruvian exports could exceed US$64
billion in 2022.
In 2021 there were 20 regions of the country that increased
exports, 12 of which achieved remarkable growth
including Ica, Arequipa, La Libertad, Piura, Moquegua,
Apurímac, Puno, Cusco, Lambayeque, Ayacucho, Ucayali
For example exports from Ica were worth US$5,625
million, Arequipa US$5,310 million, Áncash US$4,668
million, La Libertad US$3,883 million and Moquegua
In relation to non-mining exports Madre de Dios stood out
as the region with the highest growth between 2020 and
2021 (+107%) and this was largely from Amazonian nuts
and molded timber.
The United States (US$5,238 million), China (US$2,237
million), the Netherlands (US$1,538 million), Chile
(US$1,242 million) and Ecuador (US$863 million) are the
five most important markets for Peruvian non-mining
New headquarters for regional forest and wildlife
The National Forestry and Wildlife Service (SERFOR)
will improve the operational capacity of Regional Forestry
and Wildlife Authorities (ARFFS) in Madre de Dios,
Loreto, Ucayali and Cajamarca through the investment
programme "Promotion and Sustainable Management of
Forest Production in Peru”.
The programme has a total of US$110 million some of
which will be allocated for the improvement and
expansion of forest management in the departments of
Áncash, Cajamarca, Huánuco, Junín, Loreto, Madre de
Dios, Pasco, San Martín and Ucayali whose combined
forest area is around 69 million hectares.
The improvement of the services of the ARFFS consists of
the construction of institutional headquarters
(infrastructure); provision of equipment, furniture and
technological tools as well as the development and
strengthening of capacities in the departments of Madre de
Dios, Loreto, Ucayali and Cajamarca. The aim is to
optimise the management of forest planning.
Research to promote improved use of resources
In related news SERFOR and the International Center for
Agroforestry Research (ICRAF) signed a cooperation
agreement to coordinate efforts and promote research,
development and technological innovation that help
optimise the management and sustainable use of country’s
Each institution will promote the development of projects
aimed at knowledge, management, use and conservation of
forest resources and will coordinate actions to strengthen
the capacities of regional authorities.
Osinfor strengthens supervision of agroforestry
contracts in the Amazon
The Supervision Agency for Forest Resources and Wild
Fauna (Osinfor) with technical support from the AgroFor
Project strengthened the capacities and knowledge of its
officials regarding the technical and regulatory aspects of
the Concessions in Use contracts for Agroforestry Systems
TheCUSAF contracts are a type of land use right which
allows the formalization of productive forestry and
agroforestry activities of family farmers in areas identified
as agroforestry, silvo-pastoral or recovery production