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April 20, 2020

Survey – Impact of pandemic on the Indonesian timber sector

Survey – Impact of pandemic on the Indonesian timber sector

The economic impact of the coronavirus pandemic and the measures adopted to try and slow its spread are having a huge impact. The following survey tries to clarify the consequences of the coronavirus crisis on the Indonesian timber industry.

1. Are mills still operating?

Most wood industries are still operating, but they unfortunately are decreasing production. Some factory operations will continue for the next few months since Indonesia has implemented a semi-lockdown in Jakarta beginning 10 April to be followed by a lockdown in West and East Java in the near future.

Another cause of lower production is the postponement of orders by importers in the European Union, America and parts of Asia. However, Indonesia's wood product exports for the first quarter 2020 have not been seriously affected by the pandemic. The types of products that experienced a decline in exports were HS 470329 (Wood pulp; chemical wood pulp) and HS 442199 (Wood; not of bamboo).

2. Have workers been laid off?

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