Despite Increased Exports, the Wood Industry Continues to Contract Over the Past Three Years

The 2021 gross domestic product (GDP) of the wood and wood products industry, at current prices, reached Rp76.89 trillion. This represents only 2.6% of the non-oil and gas processing industry's GDP.

Measured at 2010 constant prices, the wood industry contracted by 3.71% in 2021, reaching Rp56.05 trillion compared to the previous year.

This contraction is deeper than the previous year's -2.16% and marks the third consecutive year of contraction in the last three years, and the sixth time in the last eleven years.

This situation contrasts with the performance of wood and wood product exports. The volume of wood industry exports grew by 21.88% to 5.98 million tons in 2021, compared to 4.9 million tons the previous year.

Similarly, the export value increased by 31.89% to US$4.78 billion last year, compared to US$3.62 billion the previous year.

The following are some Indonesian wood industry export commodities in 2021:

- Plywood: 1.7 million tons, valued at US$1.93 billion
- Other wood panels: 1.31 million tons, valued at US$996 million
- Processed wood: 2.42 million tons, valued at US$852 million