Indonesia has secured its position as the world’s second-largest plywood exporter, with export growth projected to remain positive through 2026, according to the Indonesia Eximbank (LPEI). The country’s plywood industry continues to demonstrate resilience and competitiveness in the global market, supported by strong demand from major destinations such as Japan, the United States, and the Middle East. In 2023, Indonesia recorded plywood exports worth over USD 3 billion, accounting for nearly 10% of global market share. LPEI stated that the sustained demand for processed wood products, coupled with downstream industrial policies, would further strengthen Indonesia’s export performance in the coming years.
LPEI emphasized that the plywood sector has significant potential to support national export diversification and sustainable growth. The agency has provided various financing and capacity-building programs to small and medium enterprises (SMEs) involved in the wood processing industry. These initiatives aim to enhance product quality, ensure compliance with international standards, and boost the competitiveness of Indonesian plywood in global markets. LPEI projects that plywood exports will continue to grow steadily through 2026, driven by the expansion of value-added wood processing industries and the implementation of green production practices that align with international sustainability standards.
