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Senin, 09 Januari 2012

The Strengths and Weaknesses of Indonesia's Timber Export Business


Timber is another name for wood and is considered to be an essential natural resource in our world today. Lumber is another word for timber, although that describes a packaged wood that is for commercial sale. The timber industry is enormous on a global scale, particularly in Indonesia, and provides a material that is used for a variety of products. Because the majority of the land mass is covered in forest, it is no surprise that timber proves to be an important resource the country to exploit for economic gain.
The exportation of timber by Indonesia is a dominant reason why they have become more economically developed. In 1987, Indonesia exported more than $1.7 billion (U.S. currency) worth of plywood and continues to be its 2nd largest export behind oil. However, after a regulation was put in place to limit the amount of timber extracted, exports have dropped slightly. The Indonesian Department of Forestry is directly responsible for these regulations, mostly to preserve the forests that are still left standing.
Like everything else, timber has some strengths and weaknesses. More than anything, timber has provided a huge economic gain for the country. It provides a third of all timber used in the world, only second to Malaysia. Not only does the timber provide economic gain in the form of cash, but trade as well. Resources that Indonesia desires but doesn’t hold in it’s home land must buy it from other countries (import). The timber that is so readily available can sometimes be used to trade for more specialty items. Because of the abundance of forests in Indonesia and their strong export business, it requires a lot of labor, which is another one of the strengths of timber. Over 300,000 people are employed to contribute to the exportation of timber, which makes the standard of living higher for those employed men and women.
On the flip side, timber has some weaknesses that are detrimental to the country. As stated early, timber can be singled out along with the presence of oil, as being the main reasons why the country has economically expanded. Due to this fact, forests are being destroyed at an alarming rate which has posed obvious problems. Regulations have inevitably been put in place to limit the amount of forestry being chopped down. The problem with these regulations is they do not seem to be strictly enforced which has encouraged illegal activity. In addition to forests continuing to decline more rapidly than wanted, the illegal timber industry has caused the market to be somewhat unstable. Illegal timber is sold at a much lower price which threatens the legal timber market and causes disequilibrium.

1 komentar:

Dearma E. Purba (115060700111097) mengatakan...

Indonesia is one of the famous country because the profuse nature resources. Especially the forest resources that produce woods, then exported by other country. So that, it can add the devisien of our country. Indonesia is the biggest industry wood country after Malaysia. Now, the industry in Indonesia has developed because supported by the function in our life. The function are to fulfil the main need as the building base, toys, cupboard, table, etc. The industry also suppport the development of men resources. In the industry needed, the men skill and people around so that can decrease the unemployed. But, nowdays we can see that the industry has descended because the greedy people that do the illegal logging everywhere. There are people that disobedient to rules for protecting forest. The effect isn’t for the industry but for the environmen too. Because of that, as the young generation we have to the have the aware to keep the forest eternal. So that, our forest can be in good condition.

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