A third of workers in South Kalimantan’s processed wood industries could be made redundant because of weak world demand and increasing production costs.
The local chapter of the Indonesian Forestry Society said poor demand in the plywood, sawmilling, forest concessions and other related industries could lead to about 13,000 workers losing their jobs.
Plywood prices are said to have dipped below US$300/m3, partly due to cheaper Chinese and Taiwanese products. Illegal levies and labour costs are also forcing up costs for the industry on Borneo island.
