Page 12 - FDMAsia Jul/Aug 2026

10 MARKET BEATS JUL/AUG 2026 FDM ASIA | www.fdmasia.com

Indonesia Plywood Industry Faces the 2025 average of 279,000 cubic

Global Trade Turmoil metres per month.
All regions experienced declines:
Sumatra (-35%), Kalimantan (-20%),
Industrial Wood Products Java-Bali (-22%), and Eastern Indonesia

(-26%). April 2026 production rebounded

to 212,000 cubic metres following the
March correction.
Film Face Plywood has seen a
resurgence, driven by increasing European
demand as buyers shift away from
Chinese suppliers due to anti-dumping
measures. Blockboard remains a significant
contributor, accounting for 22 percent
of Indonesia’s total wood panel export

composition.

Indonesia Plywood Industry Faces below the 2025 level. Export market performance
Global Trade Turmoil Kalimantan remains the primary Export volume during January–March
Indonesia’s plywood industry is currently supplier of meranti logs, while production 2026 totalled 670,000 cubic metres,
navigating one of its most challenging in Sumatra fell by an average of 35 down nearly 30 percent year-on-year.
periods in the past decade, according percent as several forest concession Asia remained the dominant destination

to apkindo.org. operations have yet to fully normalise. with a 57 percent share, followed by
According to APKINDO, Indonesia’s Meranti log FOB prices remain North America (22%), the European
plywood production reached 971,000 elevated, as industrial fuel costs in Union (10%), and non-EU Europe (6%).
cubic metres in the year to April 2026, forestry operations continue to rise. Urea Tanjung Perak served as the largest export
down 22 percent compared with the formaldehyde resin has seen substantial gateway (47%), followed by Tanjung
same period in 2025. price increases due to tightening industrial Emas (32%) and Tanjung Priok (15%).
Export value declined from US$441 urea supply, part of which was reportedly Product composition consisted of
million to US$324 million in the first exported to Australia in mid-May. plywood (76%), blockboard (22%), and
quarter, while total annual production Sengon logs, widely used for combi LVL (0.9%).

for 2026 is projected at 2.8 million cubic plywood and the domestic market, have The European Union was the only
metres—the lowest level in ten years. remained relatively stable, fluctuating export region recording significant growth,
between Rp50,000 and Rp100,000 per with export volume increasing 34 percent
Production and raw material trends cubic metre. and value rising 21 percent year-on-year
Cumulative natural forest log production Average monthly plywood and LVL in Q1 2026.
from January to April 2026 reached production in 2026 stood at approximately The UK also posted strong growth,
736,657 cubic metres, roughly 20 percent 217,000 cubic metres, significantly below with Indonesia’s wood panel exports rising