Development of the Lightwood Industry: MoU with the Indonesian Ministry of Trade

11. May 2022|In Indonesia, News

On April 22, we signed a memorandum of understanding (MoU) on the development of sustainable lightwood with Indonesia’s Ministry of Trade through the Directorate General of National Export Development (DJPEN) in Jakarta. This MoU will serve as a framework to facilitate the implementation of the lightwood sustainable development program and non-timber forest products. This shows the Ministry of Trade’s dedication to foster innovation and creativity in the development of light wood, notably sengon and jabon.

Didi Sumedi, Directorate General of National Export Development, commented on the partnership: “Lightwood has the potential to be an alternative to hardwood produced from forests. In Japan and Europe, lightwood has become the prima donna to be processed using technology and innovation into various products that are very prime and of high value.”

He also emphasized the upsides of lightwood over other types of wood, describing it as an easy and appealing industry to pursue. “It can be harvested within 8-10 years, provides high economic value, makes reforestation easier and attracts interest in the global market.”

Scope of the Cooperation

The cooperation is set to include different activities, such as supporting product development, providing information on product innovation, trends, and buyer references to Indonesian exporters in the field of sustainable development products. We will also be assisting the exporting industry in the sourcing and preprocessing of lightwood logs in order to enhance the potential of lightwood products from Indonesia.

Moreover, the cooperation will include collaborative activities to increase the capacity of the lightwood sector in the form of training and workshops for DJPEN personnel, lightwood farmers, and small and medium enterprises. By participating in trade fairs in Indonesia and Germany, we aim to educate potential European buyers about the benefits of light wood, not only as a superior product but also as a means of supporting farmer welfare and being ecologically beneficial.

As a concrete manifestation of this collaboration, we will start a pilot project in the form of a 70m2 lightwood house, which will be located in the yard of the Provincial Forestry Office in Central Kalimantan. It will make use of a modular timber construction system – requiring only a maximum construction time of three days – and raise awareness for the high added value of lightwood.