Plywood Export Value Estimated To Grow 8 Percent In 2025

Market Intelligence & Lead Management Chief Specialist Indonesia Eximbank, Rini Satriani (Doc. Indonesia Eximbank Institute)

JAKARTA The Indonesia Eximbank Institute projects that the export performance of plywood (HS Code 4412) will increase in 2025-2026 despite facing challenges in the global market.

Market Intelligence & Lead Management Chief Specialist Indonesia Eximbank, Rini Satriani said that the export value in 2025 is estimated to grow by 8 percent year-on-year (yoy), supported by stable demand from major markets such as the United States, China, and Malaysia.

He said that this positive trend is projected to continue in 2026 with a growth of around 4 percent (yoy), despite being hampered by the supply of certified wood raw materials.

For information, Plywood or better known as the plywood in Indonesia, is processed wood produced by a pile ofuses attached using special resin or glue, thus producing thick, strong, and flexible wooden boards.

Meanwhile, this product is widely used for the furniture, construction, and interior industries of the house.

Based on data processed by the Indonesia Eximbank Institute, in Semester I-2025, Indonesia's plywood exports still recorded a positive performance amidst the weakening of global exports, namely the export value recorded an increase of 3.86 percent ctc and an increase in volume of 3.45 percent ctc.

"This achievement is mainly supported by demand from the United States, along with the growth of the Recreational Vehicle (RV) industry which encourages the use of plywood for interior needs," he said in his statement, quoted on Sunday, October 5.

According to him, Indonesia's plywood export competitiveness is relatively well maintained where domestic product prices are still competitive in the global market and currently, Indonesia occupies the second largest plywood exporter position in the world, competing closely with China, Vietnam, Brazil, and Russia.

In addition, he said that Indonesia's plywood exports had diversified to more than 85 countries involving around 400 active exporters.

Rini explained that of this amount, there are around 20 corporate-scale exporters, each of which records the value of export sales of more than IDR 500 billion per year.

"Competition in the domestic industry is also quite healthy because there are no players who dominate the market," he explained.

He conveyed that another advantage for Indonesia is the availability of abundant wood resources and the existence of an internationally recognized SVLK (Seywood Legality Verification System) certification.

These factors provide stability to Indonesian exports even though demand in several countries tends to weaken, added Rini.

However, he said there are a number of challenges that need to be anticipated and new competing countries such as Tanzania and Cameroon are starting to enter the main market, while certified wood supplies are still limited due to the high cost of SVLK compliance.

According to him, some competitors have also begun to show more aggressive export trends, so Indonesia needs to strengthen its position.

Rini emphasized that in the long term, Indonesia's plywood export success will depend heavily on efforts to facilitate access to wood certification, maintain production cost efficiency, and increase market penetration through international trade agreements.

He conveyed that with these steps, Indonesia has the opportunity to maintain its position as one of the world's main plywood exporters with sustainable growth.