How to Export Wood Products from Indonesia and Sell Them Globally without any Specialized Skills

08 Nov 2021

By Nurfitriyani Barokah

The wood export market has seen a rise in demand from countries that are experiencing a lack of supplies, such as China and India. The wooden furniture industry is slowly growing, but it still contributes to less than 10 percent of the global wood industry. In 2015, the typical American exported one ton of wood worth $1,925. This number increased by almost 40 percent from 2013 to 2015. In 2016, Canada was the largest exporter of wood products with a total value of over $US3 billion USD.
 
Indonesian people are among the world's largest consumers of wood. Wood exports from Indonesia soared more than 20% during 2017 to reach more than US$7 billion USD. At present, there are several companies that export logs from Indonesia with a total production capacity of 12 million cubic meters per year, while around two-thirds are exported to Europe and North America.
 
What are the Top 5 Challenges of Buying and Selling Wood Products?
Indonesia is the country with the largest production of timber worldwide. However, its export of wood products has not been increasing in tandem with this production. The major challenges of wood products are the lack of comprehensive knowledge about what species are good for export, where to sell it, and how to make a profit.
 
On top 5 challenges mentioned below:
- More demand for product types that aren't available in local market
- Lack of modern log trading information
- Difficulty in finding specific logs
- Lack of awareness about buying and selling wood products among consumers
- Difficulty in finding sellers who are willing to buy or sell on long term basis
 
A common question that import-export log importers and exporters are faced with is how to increase their return on investment. There are many ways to do this, but five are the most commonly used.
  1. Choose a broker who has experience in the trade you’re doing
  2. Consider importing in bulk
  3. Compare your prices to other countries
  4. Import logs in the off season
  5. Consider getting an agent or subcontracting with an agent
It is easy to buy and sell timber online. All you need is a website where the user can register as a seller or buyer. There are many websites that help users find sellers or buyers that have high quality timber products.
 
 

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