Competitiveness and Efficiency of the Forest Product Industry in Indonesia
AbstractThis paper provides an assessment on policy and structural changes in the Indonesian wood-based industries. The author shows that the tremendous growth of production and exports has been made possible through heavy subsidies, resulting in inefficiencies in harvesting and production. Subsidies created an incentive to delay the use of cost- and wood-saving technology. Constant market share analysis revealed that competitiveness of forest product exports declined during the period 1993-2003, and could only be partially compensated by an increased shift towards pulp and paper exports. Indonesia is losing competitiveness in slow growing industries like wood products, especially plywood. Further restructuring of the forest product industry in favor of pulp and paper industry with proper environmental management is the right policy direction, but there are also concerns that the huge demand for wood by the industry is already exceeding sustainable harvest levels.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Strategic and International Studies, Jakarta, Indonesia in its series CSIS Economics Working Paper Series with number WPE075.
Date of creation: Feb 2004
Date of revision:
Indonesia; forest products; competitiveness; trade; constant market share (CMS);
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-15 (All new papers)
- NEP-COM-2004-02-15 (Industrial Competition)
- NEP-ENV-2004-02-15 (Environmental Economics)
- NEP-SEA-2004-02-15 (South East Asia)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Muhammad Zikri, 2009. "An Econometric Model for Deforestation in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200903, Department of Economics, Padjadjaran University, revised Jul 2009.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Arya B. Gaduh) The email address of this maintainer does not seem to be valid anymore. Please ask Arya B. Gaduh to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.