Indonesia sets 5-year target for wood exports at US $5 bn
As reported by the International Tropical Timber Organization (ITTO), the Indonesian government has set a target for wood product exports at US $5 billion (£3.7 bn) in five years.
Statistics from the Ministry of Industry showed that the export value of wood and rattan furniture was US$1.9 billion in 2014, rising to US$2 billion in 2015.
To help the private sector achieve the five-year target, Airlangga Hartanto, the Indonesian Minister of Industry, indicated that an all-out effort to encourage investment in the timber, furniture and national craft industries will be made along with a synergy of policies to realise the US$5 billion target.
Mr Hartanto said his aim is to boost and strengthen the competitiveness of Indonesia's small and medium-sized industries so that they can compete with imported goods.
However, a big boost to the manufacturing sector in Indonesia would be needed if it is to contribute more than the current 20% to GDP, according to an analysis by Indonesia-investments.com. Indonesia’s dependence on commodity exports makes it vulnerable to external threats.
Data from Indonesia's Industry Ministry explained that the domestic industry is growing at a slower pace than Indonesia's overall economy.