The chairman of APHI, Nana Suparna, said that because of the log export ban log prices have fallen and that the current price of logs from the natural forest is only about half the price of tropical logs in international markets.
In comparison, Nana Suparna said the selling price of meranti logs in Indonesia’s domestic market is between $120-130 per cubic metre while in the Japanese market such logs are almost three times that price.
For merbau the local market price is around $300 per cubic metre while in the Chinese market merbau sells for double that price. The wholesale price of merbau sawnwood in China is as high as $1400-2200 per cubic metre while Indonesia’s FOB price is less than $600 per cubic metre.
Indonesia became a major log exporter when, as a result of a deal with the IMF, log export taxes were reduced but poor law enforcement resulted in excessive logging resulting in a ban on log exports in 2001.
