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Increasing demand for verification and certification services creates business opportunities

External Reference/Copyright
Issue date: 
22. Juli 2011
Publisher Name: 
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California-based Scientific Certification Systems (SCS) announced that they will be setting up an office in Jakarta in direct response to an increasing demand for verification and certification services from the Indonesian timber industry.

PT Scientific Certification Systems Indonesia (PT-SCS), as it will be known, will offer services in Forest Stewardship Council (FSC) Chain of Custody Certification and Forest Management Certification, in Indonesia.

PT-SCS will also offer ‘LegalHarvest’ verification services, and is in the process of becoming an accredited SVLK (Timber Legality Assurance System) service provider for the Indonesian mandatory national standard in timber certification.

In addition, PT-SCS will offer forest carbon offset verification services. It has already begun to verify Indonesia's first REDD project to the Voluntary Carbon Standard (VCS).

Private consortium raises cash for carbon projects
A major Australian banking and financial services provider - the Macquarie Group, the International Finance Corporation (IFC), an affiliate of the World Bank and a forest management firm said they had raised $25 million for forest carbon projects in developing countries. The Macquarie Group’s firm, BioCarbon Group, said it had agreed to the terms and conditions of the investment plan, with fellow investors the IFC and U.S.-based Global Forest Partners LP for total equity financing package of $25 million.

The Macquarie Group is currently developing 3 REDD projects in Indonesia in partnership with the global conservation group Fauna & Flora International, and is looking for room for expansion. BioCarbon will be the financial vehicle for these upcoming projects. The first recipient of the new investment funding is set to be a 40,000 ha. (100,000 acre) project in Kapuas Hulu in West Kalimantan. Most of the project is on carbon-rich peat swamp forest.

Indonesia Log Prices

Indonesia logs, domestic prices US$ per m³
Plywood logs Face Logs 218-261
Core logs 204-233
Sawlogs (Meranti)   212-272
Falcata logs   183-214 
Rubberwood   92-96 
Pine   192-235
Mahoni (plantation mahogany)   495-526
Indonesia Sawnwood Prices
Indonesia, construction material, domestic US$ per m³
Kampar (Ex-mill) AD 3x12-15x400cm 205-224
KD 219-254
AD 3x20x400cm 239-262
KD 240-269
Keruing (Ex-mill) AD 3x12-15x400cm 254-268
AD 2x20x400cm 244-262
AD 3x30x400cm 227-246
Indonesia Plywood Prices
Indonesia ply MR BB/CC, FOB
US$ per m³
MR Plywood (Jakarta), domestic
Other Indonesia Panel Prices
Indonesia, Other Panels, FOB
US$ per m³
Particleboard Export     9-18 mm 241-250
Domestic 9 mm 221-233
               12-15mm 215-227
               18mm 211-222
MDF Export     12-18mm 271-286
Domestic 12-18mm 255-267
Indonesia Added Value Product Prices
Indonesia, Mouldings, FOB
US$ per m³
Laminated Boards Falcata wood 323-336
Red Meranti Mouldings 11x68/92mm x 7ft up
  Grade A 515-546
Grade B 472-495

(ITTO's Tropical Timber Market Report)


Extpub | by Dr. Radut