Mar 16, 2009. /Lesprom Network/. The Indonesian plywood industry is facing the grim prospect of a further decline in exports by at least 40% in 2009, according to Mr. Abbas Adhar, Deputy Chairman of the Association of Indonesian Wood Panel Producers (Apkindo). With major importing countries such as the US, the EU and Japan in recession, Indonesian plywood manufacturers have yet to receive any orders to date for 2009, as ITTO informed Lesprom Network. The Indonesian plywood industry hit its peak in 1993, when Indonesian plywood manufacturers employed up to 455,500 workers and manufactured 10 million cubic metres of plywood, with 90% heading to export markets. Since then, production has declined to 3.1 million cubic metres in year 2008, a drop of 27% compared to 2007. In 2008, 2.5 million cubic metres of plywood, worth $1.5 billion was exported from Indonesia. The industry’s problems are further compounded by aging machinery and high production costs. Of the 130 existing plywood factories in Indonesia, only 64 were operating in 2008. This may be further reduced to 20 in 2009. Stiff competition from China, Malaysia and Brazil was another major contributor to declines in Indonesia’s plywood sales. Mr. Masyhud, head of the Ministry of Forestry’s information center, has suggested Indonesian plywood manufacturers focus on the local market given the current economic situation.