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The Indonesian wood products industry

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  • Kian Thee

Abstract

This paper analyses the development of Indonesia's wood products industry, particularly the plywood industry, which from a small base emerged in the 1980s as one of Indonesia's major manufacturing industries. This account is of interest since it provides a good example of ‘export substitution’, that is, the enforced development of the wood products industry by limiting the exports of logs through prohibitive export taxes and subsequently by a partial and later by a total ban on log exports. However, because of the difficulties which the wood products industry, particularly the plywood industry, has experienced over the past decade, the question arises whether export substitution provides the proper incentives to develop an efficient manufacturing industry.

Suggested Citation

  • Kian Thee, 2009. "The Indonesian wood products industry," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 14(2), pages 138-149.
    • Handle: RePEc:taf:rjapxx:v:14:y:2009:i:2:p:138-149
    DOI: 10.1080/13547860902785971
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    References listed on IDEAS

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    1. Dijk van, M., 2003. "Industry Evolution in Developing Countries: the Indonesian Pulp and Paper Industry," Working Papers 03.02, Eindhoven Center for Innovation Studies.
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    Cited by:

    1. Amir, Hidayat, 2013. "Economic Impact Analysis of the 2012 Indonesia Mineral-Export Tax Policy: A CGE Approach," MPRA Paper 62669, University Library of Munich, Germany.
    2. Neilson, Jeffrey & Dwiartama, Angga & Fold, Niels & Permadi, Dikdik, 2020. "Resource-based industrial policy in an era of global production networks: Strategic coupling in the Indonesian cocoa sector," World Development, Elsevier, vol. 135(C).

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