Indonesia's economy continues to decline, furniture exports continue to be strangled

The global economic downturn continues to have a negative impact on Indonesia's timber exports. According to data from the Indonesian Central Statistics Office, Indonesia's timber exports in the first quarter of 2009 decreased by 28% compared with the same period last year, with a total export value of US$559.7 million.
According to Jakarta Global News, Indonesia's wooden furniture and wooden doors and windows saw a sharp drop of 23.2% in the first quarter of 2009, and the total value of exports fell by 15.8% ($375.8 million) compared with the same period last year.
Paper and pulp exports also fell by 3.1% to a total of 32,747 tons, but the value rose by 17% to $183.9 million. In 2008, the total export value of Indonesian furniture and handicrafts was US$2 billion, of which 30% was exported to the US market and 40% in the European market. In Indonesia, there are as many as 11 million workers in the furniture industry, of which 7.5 million are in Java.
In the first five months of 2009, the new investment income of the Indonesian forestry industry reached Rs. 1.2 trillion, equivalent to US$116 million. According to Indonesian Forestry Department officials, part of the reason is because the government has introduced new forestry reform measures.

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