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.