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said the GTI-Indonesia report, based on information provided industry. Heavy rainfall slowed log transportation, and there
by the GTI-Indonesia Focal Point. was a shortage of raw materials, particularly red meranti.
Indonesia’s primary export markets for wood panel products Other challenges include unstable global market conditions for
are the US, Japan and South Korea, followed by Malaysia, plywood products, which tended to be sluggish, an insufficient
the UK and China. number of plantation workers, and an unstable fuel supply.
Indonesia maintains its competitiveness in the global To address or mitigate these challenges, enterprises called

market due to: sustainably and legally sourced timber, ensured on the authorities to revise regulations related to the export of
through the PHPL/SILK certification system; stable product forestry products, particularly restrictions on types related to
quality and a wide selection of workable species; compliance cross-sectional area provisions, to support the sustainability
with international technical and environmental standards; and of upstream and downstream sectors.
long-standing commercial relationships with construction and Policy incentives, they said, are needed to increase the
industrial buyers in major markets. absorption of wood in the domestic market and to seek new
On export performance, the report said Indonesia’s markets for Indonesian wood products abroad.
woodworking products, including mouldings, joinery and “Policies are needed to ensure a continuous supply of raw
engineered components, are primarily exported to China, materials for the industry. A strong role of the government in

Australia and Japan. international trade is needed to enhance the competitiveness
Demand for these products remains resilient owing to of wood products and forest commodities. Marketing in other
Indonesia’s strong capacity for customised production, favourable countries should be expanded with government support,”
pricing relative to regional competitors, and a secure supply they added.
base of certified plantation timber. The enterprises also suggested that, to meet annual
Indonesia’s wood furniture exports are predominantly shipped logging plan targets, wood production could be maximised
to the US, Belgium and Brazil, with additional growth observed during dry weather periods.

in secondary markets across Europe and the Asia Pacific. To reduce equipment breakdowns, they called for
Indonesia’s furniture sector benefits from high craftsmanship strengthening preventive maintenance and operator training,
and design adaptability, a reputation for quality materials and establishing partnerships with multiple suppliers and maintaining
sustainable sourcing, and the ability to serve both high-volume critical spare parts, implementing fuel efficiency measures and
retail chains and premium niche buyers. exploring alternative energy sources, as well as diversifying
In the first six months of 2025, Indonesia’s furniture market channels and securing long-term contracts to mitigate
exports generated revenue of US$920 million, with the US wood price fluctuations.
remaining the largest export destination, accounting for 54.6 In November 2025, the GTI-Indonesia index registered
percent of the total. 49.1 percent, below the critical value of 50 percent for the

However, the Indonesian government acknowledged the second consecutive month, indicating that business prosperity
need to develop new strategies to tap into non-traditional among the leading timber enterprises represented by the index
markets, such as Eastern Europe, the Middle East, Latin declined from the previous month.
America, India and Japan. Despite the overall contraction on the supply side among
GTI-Indonesia enterprises reported several key challenges the sampled enterprises, both domestic and international
in November 2025, notably low log prices in the domestic market demand demonstrated growth during the month
market due to weak demand from the timber processing under review.