Development of the Forestry Industry in East Java

East Java Province is a strategic region in the timber trade in Indonesia. Such conditions make the wood processing industry flourish in the East Java region. Based on the East Java Provincial Forestry Service Data for 2019, there are 1,084 business units holding a Timber Forest Product Primary Business Permit (IUIPHHK) in East Java. The supply of raw materials for the Primary Forest Wood Product Industry is obtained from natural forest production logs outside Java, Perum Perhutani production and supplies from community forest / community forest round logs in Java or outside Java. No less than 1.5 million cubic meters of logs from natural forest production are received by the holding companies and primary industries of timber forest products in East Java. Guidance and control of IUIPHHK is under the authority of the East Java Provincial Forestry Office and the Ministry of Environment and Forestry.

The processing activities of timber forest products are also carried out by holders of Industrial Business Permits (IUI) and holders of Industrial Registry Numbers (TDI). Based on field data, there are approximately 600 IUI / TDI units in East Java which carry out processing activities of sawn timber into end products. Supply of IUI and TDI raw materials in the form of sawn timber obtained from primary industrial production of timber forest products and / or sawn timber supply from processed wood collection companies / Processed Registered Shelter Holdings (TPT-KO). Supervision and control of IUI / TDI is the authority of the provincial and district / city government agencies in charge of the industry.

In some permit holders, one business entity has licenses as IUIPHHK and IUI in one integrated site, which is categorized as an Integrated Wood Processing Industry (IPKT). Raw material supply in IPKT is in the form of logs and can also receive supplies in the form of sawn wood.

Forestry Industry Products (PIK) which are the output of the wood processing industry are marketed domestically (big cities in Java) and export markets in the form of plywood, molding, housing components, flooring, door jamb, and other woodworking. Based on data from the Ministry of Environment and Forestry (KLHK) website in 2019, the wood processing industry in East Java is the highest export supplier of forestry industry products in Indonesia based on loading port location categories.

Table 1. Top 10 Ports of Loading Forestry Industry Products in Indonesia

Loading portV-Legal IssuedWeight (Ton)FOB (.000 USD)
Tanjung Perak (East Java)26.995853.085,261.078.869,03
Tanjung Priok (DKI Jakarta)18.839728.779,05769.803,92
Tanjung Emas(Central Java)27.752489.963,88739.346,25
Perawang (Riau)8.2671.032.331,80728.155,79
Boom Baru ( South Sumatra)1.1621.097.979,98645.871,33
Buatan (Riau)4.605819.134,92456.524,18
Belawan (North Sumatra)3.018200.973,36154.248,42
Futong Terminal (Riau)119318.815,64147.511,84
Kuala Tungkal (Jambi)999141.496,85116.072,60
Banjarmasin (South Borneo)1.21991.313,7792.257,25

Data source:, 24/06/06 2019.08.26 WIB

The activity of fulfilling the supply of sawn timber raw materials by the secondary wood forest product processing industry (IUI / TDI), both legal entities that are independent or integrated with IUIPHHK holders, is considered not to be in full order. This is evidenced by the results of monitoring and evaluation conducted by the East Java Provincial Forestry Office and the Ministry of Environment and Forestry of the supply of timber raw material, as well as the results of law enforcement activities by the Directorate General of Law Enforcement Ministry of Environment and Forestry (DG Gakkum KLHK).

Throughout 2019, 368 containers of sawn timber were supplied to the advanced wood processing industry in East Java, which contained approximately 6,600 cubic meters of Merbau sawn timber by KLHK Directorate General Gakkum officers. The Merbau sawn timber supply was allegedly illegal and used illegal transportation documents or illegally collected. The legal process for the wood is still ongoing.

The full article in the 13th edition of the newsletter “The Monitor”.
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