Indonesia Conference Directory

Indonesia is one of the top ten countries with the largest forest area in the world and potentially to become the largest forest products exporter in the world. Wood and articles of wood are the only forest product commodities that are included in the ten export commodities with the largest share in 2017, reaching 34%. Plywood provides the largest share of wood and articles of wood, reaching 42% in 2017. Since 2000, Indonesia is no longer a major exporter of world plywood, and the plywood exports volume tends to decline until 2017. Besides, it is indicated that some large plywood exports are still illegal, which are generally of inferior quality. It can subsequently have an impact on the competitiveness of Indonesian plywood. This study aims to analyze the competitiveness of Indonesian plywood and assess the factors that affect Indonesian plywood exports to three major trading partners (Japan, South Korea, and the United States) over the period 2000 to 2017. The method used is the Common Effect Panel Model with cross-section weighted. Based on the results, it can be concluded that production and GDP do not affect the Indonesian plywood export significantly, while REER, RCA, and trade openness affect the Indonesian plywood export significantly. The policy recommendation is to enhance partnerships between exporters and timber farmers (especially those with limited capital) to increase production. As well as increasingly tightening the Timber Verification and Legality System (SVLK) so that importers do not doubt the quality of Indonesian plywood.