Exports and Competitiveness of Indonesian Plywood

— Indonesia is the top ten countries with the largest forest area in the world and has the potential to become the largest forest products exporter in the world. Wood and articles of wood are the only forest product commodities that are included in the ten export commodities with the largest share of the forest product in 2017, reaching 34%. Plywood provides the largest share of wood and articles of wood, with 42% in 2017. Since 2005, Indonesia is no longer a major exporter of world plywood, and the export volume tends to decline until 2017. This study aims to analyze the exports and competitiveness of Indonesian plywood to three major trading partners (Japan, South Korea, and the United States) over the period 2000 to 2017. The method used is the Common Effect Panel Model with cross-section weighted. Based on the results, it can be concluded that REER, RCA, and trade openness affect the Indonesian plywood export significantly. The policy recommendation is to enhance partnerships between exporters and timber farmers (especially those with limited capital) to increase production. As well as increasingly tightening the Timber Verification and Legality System (SVLK) so that importers do not doubt the quality of Indonesian plywood.