Rubber and Wood Accelerate Indonesia’s Export Market

Indonesia has accelerated its export market with its agricultural commodities, namely rubber and wood. Rubber products received a lot of demand from Ethiopia. Meanwhile, wood products received a lot of demand from the UK.

According to finance.detik.com, Chairman of the DPP Association of Indonesian Export Companies (GPEI) Khairul Mahalli explained that rubber products are included in the leading sector. Rubber products are considered to have better export potential next year.

“Until now, there are only three rubber products, for example, us (Indonesia), Malaysia, and Thailand. Ethiopia asks for all types of tires, cars and trucks they ask us. Whatever goods they want,” said Khairul at an event at the Hotel Raffles, Jakarta Selatan (9/11/2022).

Meanwhile, wood products managed to secure an export agreement with the UK. This agreement was signed at the Business Community Dialogue on Indonesian Sustainable Commodities, which was held by the Indonesian Embassy in London on Tuesday (8/11/2022).

Reported by metro.suara.com, Desra Percaya, the Indonesian Ambassador in London, was present at the signing of the purchase of wood products contract for wooden door and plywood. The contract was between Pacific Rim, Hanson Plywood and James Latham with PT Kutai Timber Indonesia (KTI) and Kayu Lapis Indonesia (KLI) with a total value of around USD 25 million. In addition, there was also a contract agreement for paper products, between Calington Ltd. with Asia Pulp and Paper (APP) with a total volume of 50 thousand tons worth around USD 50 million.

Based on data from the Ministry of Trade, Indonesia exports wood products to the UK, including furniture and paper, reached USD 277 million in 2021. In the January-September 2022 period, it reached USD 214 million, up 3.8% compared to the previous year.