Indonesia

Indonesia's Ministry of Forestry strengthens the SVLK+ system to meet global market demand

Indonesia's Ministry of Forestry is accelerating the transformation of its forest product legality assurance system to enhance the competitiveness of Indonesian forest products in international markets.

Indonesia currently has 123.9 million hectares of forest, of which about 67 million hectares are production forests. These forestlands are managed sustainably through an increasingly modern, transparent, and responsible governance system. Strengthening the Legality and Sustainability Verification System (SVLK+) is a key foundation for improving the competitiveness of Indonesian forest products.

Ministry of Trade prepares pilot project for EUDR compliance model

Indonesia's Ministry of Trade is working with an exporter to prepare a pilot project aimed at establishing a compliance model for Indonesian commodities subject to the European Union Deforestation Regulation (EUDR). Trade Minister Budi Santoso said the government hopes to develop a model suited to Indonesia's own circumstances while meeting EU standards.

Over the past two to three years, the government has been informing exporters and farmers about the requirements of the EU deforestation regulation. Many exporters have also prepared to meet the relevant requirements.

The Ministry of Trade listed five major challenges for products entering international markets: sustainability, traceability, food safety, product quality, and supply chain reliability.

Domestically, the Ministry of Trade is also continuing to advance enterprise preparations across various sectors. On August 19, 2026, the ministry held a discussion on preparations for forest products to respond to the EUDR, covering regulatory requirements, certification, and the Timber Legality and Sustainability Verification System (SVLK).

HPE prices for some Indonesian wood products rose in August

In August 2026, the export benchmark prices (HPE) for various Indonesian wood products increased. Prices rose for natural forest veneer and certain processed wood products with a cross-sectional area of 1,000 to 4,000 square millimeters, including mixed forest species and plantation species such as teak, balsa, and eucalyptus.

Export benchmark prices fell for plantation veneer, boards for packing crates, wood chips or particles, and some processed wood made from meranti, merbau, ebony, acacia, pine, gmelina, hybrid acacia, and rubberwood.

Malaysia

Malaysian minister: high value-added products are crucial to the development of the timber industry

Malaysia's Minister of Plantation and Commodities Noraini Ahma said Malaysia's timber industry must transform from a production model that simply pursues volume to one that produces high value-added products, in order to enhance competitiveness and build a distinctly Malaysian brand.

She pointed out that this transformation is crucial because Malaysian timber products have successfully entered major markets such as the United States, Japan, China, Europe, the Middle East, Australia, and other Asian countries.

Noraini said the government will assist the industry through agencies under the ministry—including the Malaysian Timber Industry Board (MTIB), the Malaysian Timber Council (MTC), and the Malaysian Timber Certification Council (MTCC)—to improve productivity, develop human capital, expand markets, and strengthen sustainable development practices.

She noted that the value of timber lies not only in the raw material itself, but also in the added value created through craftsmanship, creativity, design, and the story behind the product.

Noraini said nearly 5.9 million hectares of forest in Malaysia—equivalent to more than 32% of the country's total forest area—have been certified under the Malaysian Timber Certification Scheme (MTCS), while 365 companies nationwide have obtained MTCS/PEFC Chain of Custody certification.

54.4% of Malaysia's land area is still covered by forests and trees

Minister of Natural Resources and Environmental Sustainability Arthur Joseph Kurup said at the opening ceremony of the "2026 International Tropical Forestry Conference" that Malaysia still has 17.99 million hectares of land—54.4% of its land area—covered by forests and trees, thereby fulfilling its commitment since 1992 to maintain at least 50% forest cover.

Sabah and Sarawak are the two regions with forest and tree cover exceeding 60%. Sabah's coverage rate is 62.53%, equivalent to 4.63 million hectares of land; it is followed by Sarawak with a coverage rate of 61.52%, or 7.64 million hectares.

He said that through policy, legislation, science, and certification, the sustainable forest management system is being continuously strengthened.

At the same time, nearly 5.9 million hectares of forest have been certified under the Malaysian Timber Certification Scheme (MTCS), which is endorsed by the Programme for the Endorsement of Forest Certification (PEFC).

Speaking about the "Plant 100 Million Trees" campaign, Arthur said 137 million trees have been planted nationwide. Among them, Sabah is the state with the second-highest number of trees planted after Sarawak, with 27.19 million trees planted.

Thailand

Thailand's furniture export data for January-July 2026

According to data published on the official website of the Thai Furniture Association, from January to July 2026, Thailand's total exports of furniture and parts reached US$1.184 billion, up 19.25% year-on-year. During the same period, sawn timber exports were US$758 million, up 3.05% year-on-year; medium-density fiberboard (MDF) exports were US$393 million, down 24.62% year-on-year; and particleboard exports were US$270 million, down 6.32% year-on-year.

Draft amendment to the Community Forest Act, adding carbon credit sales provisions, opened for public consultation

The Secretariat of the House of Representatives of Thailand launched a public consultation on a draft amendment to the Community Forest Act, which adds provisions concerning carbon credit sales.

The core principle of the draft legislation is that revenue from carbon credit sales generated by community forest management activities approved by a "provincial community forest committee" that reduce or absorb/sequester greenhouse gases shall not be remitted to the national treasury as government revenue. Instead, the "community forest management committee" is authorized to distribute these funds directly to registered members participating in the activities in accordance with each community's specific rules. This ensures that members who cooperate with the state in natural resource management can receive additional income beyond what they earn from collecting forest products and engaging in ecotourism. The initiative aims to improve the efficiency of community forest management and create sustainable income for local communities.

China

China's furniture exports rose 8.5% year-on-year in January-July

The latest data from the General Administration of Customs on August 7 show that from January to July 2026, China's exports of furniture and parts were about US$39.189 billion, up 8.5% year-on-year. Compared with the decline in full-year exports in 2025, the first seven months of this year have shifted into a growth range.

Furniture exports are shifting from a relatively concentrated market structure in the past to a more diversified regional layout. Some companies are accelerating efforts to open markets in the Middle East, Southeast Asia, Latin America, and other regions to reduce dependence on a single market.

At the same time, revenue and profits in the domestic furniture manufacturing industry continue to come under pressure. Data from the National Bureau of Statistics show that in the first half of 2026, the operating revenue of above-designated-size furniture manufacturing enterprises was RMB 257.61 billion, down 8.6% year-on-year; total profits were only RMB 4.57 billion, down 52.7% year-on-year.

General Office of the State Council issues letter specifying harvesting quotas in key forest areas

On August 6, the General Office of the State Council issued the "Reply on the Annual Forest Harvesting Quota in Key Forest Areas during the 15th Five-Year Plan Period." The Reply states that the State Council agrees in principle to the annual forest harvesting quota in key forest areas during the 15th Five-Year Plan Period as compiled by the National Forestry and Grassland Administration. According to the "Table of Annual Forest Harvesting Quotas in Key Forest Areas during the 15th Five-Year Plan Period" attached to the Reply, the total annual harvesting quota is 8.2032 million cubic meters. Among them, Inner Mongolia Forest Industry Group has 1.80 million cubic meters, Jilin Changbai Mountain Forest Industry Group has 1.82 million cubic meters, Longjiang Forest Industry Group has 1.902 million cubic meters, Yichun Forest Industry Group has 1.259 million cubic meters, and Greater Khingan Mountains Forestry Group has 1.4222 million cubic meters. The Reply makes clear that the harvesting quota is the maximum limit for annually harvesting forests on forest land and consuming forest growing stock in key forest areas, and the National Forestry and Grassland Administration and all relevant units must strictly enforce it and must not exceed it. The National Forestry and Grassland Administration should further optimize and improve the management of annual forest harvesting quotas, fully implement sustainable forest management, and ensure that the total forest resources in key forest areas continue to grow and their quality continues to improve.