How the Teak Wood Export Industry is Disrupting Southeast Asia

01 Nov 2021

By Siti Oktorina

Teak is the world's most valuable hardwood, and Southeast Asia is the world's largest exporter of it. The industry is mostly centered in Indonesia, with some smaller operations in Thailand and Malaysia. Teak is grown by small farms in South East Asia, where it can be cut down at a rate of about 10 trees per hectare per year. The industry affects the region in many ways, including increasing deforestation rates and contributing to global warming.

Indonesia ranks second in the world in teak production, but major challenges have slowed its growth. One of the main problems is that Indonesia has no domestic market for high-quality teak products. Due to this, most of the Indonesian teak production is exported to other countries at an almost 100% rate. Indonesia has made some progress since 2014 with its efforts to separate the quality of raw materials from their price on international markets.

One of the most important challenges facing Indonesia as a leading exporter of high-quality teak wood is creating value for customers by producing unique products that are difficult to find elsewhere. Despite being one of the most expensive wood types on earth, Indonesian teak remains unique due to its properties which make it flexible and resistant yet highly durable.

The global market has been changing rapidly and Indonesia has been struggling to keep up with it. The government has to make a lot of changes in order to stay competitive and well-positioned. It is the top exporter of wood and it exports over USD 15 billion worth of wood products annually. This is not just because it produces natural timber, but also because it offers a great value for the money that its industry brings in. Indonesia exports more than 75% of its wood products internationally, with China as the largest importer followed by Japan and South Korea.

Indonesia is one of the world’s leading exporters of tropical hardwood products. They are mostly valued for their teak furniture. While Indonesia has been exporting these products for decades, they have recently been experiencing a global boom as other countries have been benefiting from the cheap prices and skilled labor. Indonesia is one of the world’s leading exporters of tropical hardwood products. In 2017, they exported 2.8 billion USD worth of wood goods to countries such as China, Vietnam, Japan and others. This boom has led to a decline in local teak production which is causing a shortage in supply and increasing demand.

There are a few important things you need to do to gain an advantage in your competition and meet international demands:

  1. Be able to use the language
  2. Be able to target the right audience based on industry, location, or lifestyle
  3. Understand what your competitors are doing and adapt accordingly
  4. Be creative in coming up with new ideas
  5. Stay updated on trends
  6. Stay updated on technology

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