Indonesia

East Java Government Promotes Timber Industry Based on Sustainable Forest Management

The East Java Provincial Government is committed to advancing the timber industry based on sustainable forest management principles. By strengthening forest governance, promoting downstream processing (industrialization), and expanding global market access, it aims to enhance industrial competitiveness while ensuring the sustainability of forest resources.

Jumadi, Head of the East Java Provincial Forestry Service, stated at the opening of "Indowood Expo 2026" in Surabaya that East Java is one of Indonesia's largest wood processing industry centers, with approximately 1,332 industrial enterprises producing plywood, furniture, mouldings, engineered wood, and various creative wood products for international markets. He added that the export value of East Java's forest products and timber industry has reached approximately US$2.5 billion, making it a significant contributor to regional and national economic development.

Jumadi emphasized that the East Java Provincial Government is continuing to implement four strategic agendas to enhance the competitiveness of the forest products industry: strengthening downstream processing of forest products, improving sustainable forest management levels, expanding global market access through certification and innovation, and accelerating the development of a green economy.

Moving Beyond Timber Dependency, Indonesia Promotes Diversified Forestry Development

At the multi-stakeholder seminar "Revitalization of Natural and Plantation Forests: Challenges and Solutions" held in Jakarta, Khairi Wenda, Director of Forest Utilization Business Supervision at the Ministry of Forestry, stated that forest management can no longer rely solely on timber. Forestry diversification must be developed through the utilization of timber products, non-timber forest products, environmental services, carbon sinks, agroforestry, and the establishment of community partnerships.

He indicated that the revitalization strategy for Forest Utilization Business Permits (PBPH) holders will focus on: increasing stand growth rates, restoring regional ecological values, applying Reduced Impact Logging-Carbon (RIL-C) technology and intensive silviculture, developing carbon trading, ecotourism, and downstream processing of forest products, as well as strengthening concession partnerships.

Indonesian Ministry of Forestry Outlines 2027 Policy Direction and Work Priorities

During a working meeting with the Indonesian House of Representatives' Commission IV, the Ministry of Forestry outlined its 2027 policy direction and work priorities, emphasizing sustainable forest management, community welfare, and the optimization of forestry governance.

The meeting approved the Ministry's proposed 2027 budget ceiling of IDR 7.142 trillion, while setting a national revenue target of IDR 8.004 trillion in the State Budget Draft (RAPBN).

Deputy Minister of Forestry Rohmat Marzuki stated that the 2027 budget allocation will be distributed across three major programs. The "Management Support Program" will receive IDR 4.264 trillion, accounting for 59.71% of total expenditure; the "Sustainable Forest Management Program" has been allocated IDR 2.740 trillion, or 38.37%; and the "Vocational Education and Training Program" will receive IDR 137.14 billion, representing 1.92%.

The Ministry identified four strategic goals for 2027, including: increasing forest cover and protecting biodiversity; raising the income of communities around forest areas; enhancing the sustainable production capacity of forestry products and services; and strengthening forestry governance and bureaucratic reform.

Ministry of Industry Supports Furniture Digitization to Boost Exports

With the increasing adoption of technology in the domestic wood processing and furniture industry, the Indonesian Ministry of Industry supports accelerating the digitalization of the furniture sector to improve productivity and efficiency, and enhance export competitiveness.

Following the opening of "Indo Wood Expo 2026" in Surabaya, Andi Rizaldi, an expert for accelerating Industry 4.0 transformation at the Ministry of Industry, stated that digitalization is a key strategy to strengthen the global competitiveness of Indonesia's furniture industry, helping optimize production processes, reduce defect rates, and increase productivity.

Digitalization in the furniture industry involves integrating digital technologies throughout the entire business chain, including design, production automation, and online marketing. This integration enables more precise and efficient furniture manufacturing.

Andi Rizaldi expressed appreciation for the furniture manufacturing sector's performance. Despite a capacity utilization rate of only 60%, its exports already account for 80% of total domestic production.

Malaysia

Malaysia's Wood Industry Exports Reached RM22.92 Billion in 2025

At the closing ceremony of World Wood Day on June 23, Malaysian Minister of Plantation and Commodities Noraini Ahmad stated that wood products such as furniture, plywood, sawn timber, mouldings, joinery, and building components continue to enjoy strong demand in international markets including the United States, China, Japan, and Australia.

According to her, Malaysia's wood industry recorded exports of RM22.92 billion in 2025. In addition, the industry achieved domestic sales of RM18.03 billion, attracted RM229.8 million in investment, and provided over 178,000 jobs nationwide.

At the same time, the industry is facing multiple global challenges, including geopolitical conflicts, climate change, rising logistics costs, raw material shortages, and market uncertainties affecting international supply chains. Noraini stated that this situation underscores the importance of strengthening the domestic industry to reduce dependence on external supply chains and ensure long-term economic stability.

Malaysian Government Sets 15% Growth Target for Wood Product Exports

The Malaysian Ministry of Investment, Trade and Industry (MITI) has set a target of 15% growth in the country's wood product exports this year. Last year, the industry's total exports reached RM14.6 billion.

Following a dialogue session with the Muar Furniture Association (MFA) on June 11, MITI told Bernama that Malaysian wood products, especially furniture, continue to see high demand in international markets, with the United States remaining the largest export destination, with exports of RM6.15 billion, accounting for 49.1% of total exports, followed by Singapore at RM1.19 billion, or 9.5%. Other major markets include Japan and Australia, each accounting for 4.6% of total exports, and the UK at 4%.

Meanwhile, MITI is also focusing on expanding export markets in high-potential countries such as China, South Korea, and India to further drive the industry's growth.

Malaysia's MTCS-PEFC Certified Forest Area Reaches 5.88 Million Hectares

The Malaysian Timber Certification Council (MTCC) is an independent organization responsible for developing and operating the Malaysian Timber Certification Scheme (MTCS). According to data published on its official website, as of June 15, 2026, a total of 5.88 million hectares of forests in Malaysia had been certified under the MTCS-PEFC scheme, covering 25 certified natural forests and 11 certified forest plantations. Additionally, 363 companies had held the MTCS-PEFC Chain of Custody certification.

Thailand

January–May Furniture Export Data

According to data published on the official website of the Thai Furniture Association, Thailand's exports of furniture and parts reached US$816 million in the first five months of 2026, a year-on-year increase of 22.07%. During the same period, sawn timber exports reached US$543 million, up 1.60% year-on-year; medium-density fiberboard exports reached US$264 million, down 32.19% year-on-year; and particleboard exports reached US$186 million, down 15.23% year-on-year.

Thai Cabinet Approves Implementation of 15% Global Minimum Corporate Income Tax

The Thai Cabinet has approved the implementation of a 15% global minimum corporate income tax on large multinational enterprises, in line with the global minimum tax agreement led by the OECD, to prevent profit shifting to tax havens. This is expected to generate approximately THB 10 billion in additional government revenue annually.

Following the implementation of the 15% global minimum tax rate, some multinational enterprises that receive tax incentives from the Board of Investment (BOI) will be affected, as their effective tax rates may fall below the global minimum tax standard.

In response, the government is preparing to adjust its investment incentive structure, gradually phasing out tax incentive measures that conflict with global minimum tax rules, and instead adopting incentives such as subsidies or tax credits recognized by the OECD.

Currently, the Ministry of Finance is amending the Revenue Code to support the reforms, while also utilizing the BOI's Competitiveness Enhancement Fund as a supplementary mechanism to support investors.

Thai Government Relaxes Siamese Rosewood Export Controls

On June 5, the Director-General of the Royal Forest Department assigned a deputy to attend a meeting to discuss reviewing the Ministry of Commerce's announcement (B.E. 2567/2024) regarding the classification of Siamese rosewood as a prohibited export commodity, certain types of logs, processed wood, and transplanted trees as goods requiring permits, and charcoal exports requiring certificates. The meeting was chaired by the Permanent Deputy Secretary of the Ministry of Natural Resources and Environment, with representatives from relevant agencies in attendance.

Following discussions, the meeting adopted the opinion previously expressed by the Director-General of the Royal Forest Department regarding promoting the cultivation of economic tree species among farmers, especially Siamese rosewood, which is of great interest to most farmers. The relaxation of controls will help build farmers' confidence in planting, harvesting, and selling Siamese rosewood, making it a sustainable source of livelihood. Specific measures include changing the export control level of Siamese rosewood from "prohibited export goods" to "goods requiring export licenses," and restricting its export to timber originating from plantations, cultivated forests, or legally registered land. This aims to prevent illegal logging in natural forests while also establishing a timber certification system.

Thailand Launches EUDR Unified Data Platform to Boost Agricultural Exports

The Agricultural Research Development Agency (ARDA) of Thailand, in partnership with ten government agencies, has launched the "EUDR One Data Thailand" national data platform to help Thai agricultural exporters comply with the EU Deforestation Regulation (EUDR) and ensure their access to the European market.

The platform integrates farmer records, land and geospatial information, forestry data, and production information under unified national standards, thus building a unified traceability system covering the entire agricultural supply chain.

ARDA stated that it has supported research and developed the national EUDR single window system (NESW) through the website eudrthai.com. This system enables companies to generate due diligence declarations and trace agricultural products through a centralized database, thereby reducing compliance costs and administrative burdens.

At the "EUDR Thailand 2026: Driving Thai Agricultural Trade Towards World Standards" event held in Bangkok, ARDA signed a memorandum of understanding with ten partner agencies, including the Ministry of Agriculture and Cooperatives, the Royal Forest Department, the Rubber Authority of Thailand, and the Agricultural Land Reform Office, to further develop the platform.

Rubber Authority of Thailand Proposes Million-Rai Rubber Plantation Project

The Rubber Authority of Thailand (RAOT) has submitted a proposal to the Ministry of Agriculture and Cooperatives to establish one million rai of new rubber plantations over five years. The project aims to improve agricultural land quality in northern and northeastern Thailand, reduce repeated burning and PM2.5 pollution, promote integrated development of rubber plantations, and advance a low-carbon economy.

RAOT officials stated that global rubber demand is expected to grow at an average rate of about 2% per year, with current demand at approximately 15 million tons per year, exceeding current production.

At the same time, many rubber-producing countries, such as Indonesia, Malaysia, and Vietnam, have seen a continued reduction in rubber cultivation areas due to shifts to oil palm or other crops, as well as outbreaks of leaf spot disease affecting rubber yields.

In Thailand's case, rubber cultivation areas, which stood at about 19 million rai four years ago, have now decreased to about 15 million rai. Only Côte d'Ivoire has seen growth in both rubber cultivation area and production. Thailand remains the world's largest rubber exporter, with average annual exports of 4.8 to 5 million tons.

Federation of Thai Industries Releases Q2 Industry Monitoring Results

The Federation of Thai Industries (FTI) monitored various Thai industries in the second quarter of 2026 (April to June) and found that the textile, apparel, leather goods, footwear, and furniture industries are facing impacts from cheap imported goods. The plastics, chemical (fertilizer), printing, and packaging industries are experiencing raw material shortages.

Meanwhile, 13 industry sectors showed expansion prospects in the second quarter, including: electrical and electronics, air conditioning, food and beverage, and rubber products benefiting from overseas market expansion; cosmetics, pharmaceuticals, medical devices, and palm oil benefiting from domestic demand growth; and electric vehicles, machinery and automation systems, biotechnology, renewable energy and environmental management, and digital/data centers benefiting from government policy support.

China

Plum Rain Weather Affects Construction Timber Demand

The period from June to July each year, characterized by high temperatures and rainfall, is traditionally a low season for the domestic construction industry, as well as a period when timber is prone to mildew. High temperature and rainy weather are among the factors affecting demand for construction timber, leaving limited room for short-term release.

China's Forest Stock Volume Approached 21 Billion Cubic Meters in 2025

The latest annual report released by the National Greening Commission of China shows that China's forest stock volume approached 21 billion cubic meters in 2025 (growing by more than 1 billion cubic meters annually), with the total output value of the forestry and grassland industry reaching nearly RMB 11 trillion (approximately US$1.6 trillion). Annual timber production increased by nearly 36% compared with 2020.

Ministry of Ecology and Environment Releases "2025 China Ecological Environment Status Bulletin"

On June 5, the Ministry of Ecology and Environment officially released the "2025 China Ecological Environment Status Bulletin." The bulletin shows that the national forest coverage rate reached 25.09%, and the forest and grassland coverage rate exceeded 56%. The national soil and water conservation rate reached 73.09%.

By the end of 2025, the national carbon emission trading market had accumulated a trading volume of 865 million tons of allowances, with a cumulative turnover of RMB 57.663 billion. The national voluntary greenhouse gas emission reduction trading market had registered 33 voluntary emission reduction projects, with emission reductions of 17.7637 million tons.

Several African Countries See Significant Surge in Timber Exports to China

In May 2026, China's imports of timber from African countries reached 185,000 cubic meters, up 26.4% year-on-year, but down 7.8% month-on-month. The import value reached US$60.49 million, up 24.4% year-on-year.

Gabon ranked first among African countries in timber exports to China with 60,400 cubic meters, up 22.1% year-on-year, with a value increase of 9.4%. Cameroon and the Republic of Congo saw particularly notable year-on-year increases, soaring by 118.1% and 182% respectively.

Zambia, Ghana, Nigeria, and other West and East African countries showed weaker performance, with negative growth continuing in exports to China, albeit from small bases.