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EU-Indonesia first half 2022 trade trends

Dec 20, 2022 | FLEGT Market News, News

Global export value of Indonesian timber and paper product grows 10% year-on-year Indonesia’s global exports of all timber products (HS 44, 47, 48 & 94) grew 10% compared to the same six months in 2021 to almost USD 7.5 billion. The total value of first half year exports now stands almost 24% higher than the equivalent period in 2019.

HS 44 wood product exports amounted to USD 2.52 billion in the first half of 2022, representing an increase of almost 17% compared to the equivalent quarter in 2021. The value of wood product exports in the first half of 2022 have grown over 36% when compared to 2019.

HS 48 paper products were exported to the EU to the value of USD 2.30 billion in the first half of 2022, an increase of 7% on the same period in 2021 and a rise of 19% on the same period in 2019.

HS 47 wood pulp exports amounted to USD 1.55 billion in the first quarter of 2022, up 7% compared to the same period in 2021 and nearly 19% on the same period in 2019.

HS 94 wood furniture exports in the first six months of 2022 were up around 10% on the same period in 2021 and 4% on 2019 at USD 1.11 billion [Figure 2.0].

Value of Indonesian timber and paper product exports to the EU shows strong half-year growth in 2022

Indonesian exports to the EU across the four main product groupings (HS 44, 47, 48 & 94) saw growth in value in the first half of 2022 over 2021, reaching USD 757 million. The half-year growth for 2022 represents 43% over the same period in 2021 and 29% growth in value over the first six months of 2019. [Figure 2.1.1].

Netherlands’ imports across the four categories were up 23% on the same period of 2019, Belgium’s 58%, France’s 78% and Spain’s 50% [Figure 2.1.2]. The Netherlands remains Indonesia’s largest EU trading partner, with imports worth over USD 214 million in the first half of 2022. That represented around 34% growth year-on-year.

Germany remains the second largest EU market, with first quarter imports worth over USD 130 million, a growth up 24% year-on-year. Belgium comes next with half-year 2022 Indonesian imports worth nearly USD 114 million, up 64% compared to the same period in 2021. The first half of 2022 also saw strong growth in Italian imports, with 96% growth over the same period in 2021. Both Greece and Poland saw imports decline in the first half of 2022 compared to 2021.

 HS 44 wood product imports exceed 2019 levels in first half of 2022

At USD 301 million, the value of EU imports from Indonesia of HS 44 wood products in the first half of 2022 were up 43% on the same period in 2021 and 29% on 2019. [Figure2.2]

Netherlands remains the largest EU member state importer by value of Indonesian HS 44 products, with its total reaching USD 125 million in the first six months of 2022, up 34% on the same period in 2021 and 27% on 2019.

Germany’s HS44 Indonesian imports in the first half of 2022 were USD 68 million, a 33% increase on 2021, and up 5% on the first quarter of 2019. Belgium’s HS 44 imports in the first half of 2022 were worth USD 31 million, up 79% on the same period of 2021 and 40% up on the same period in 2019.

France’s imports were up by 70% on the same period in 2021 and 92% on 2019 at USD 16 million. Italy’s imports were 56% above 2019 levels at around USD 16 million, and up 74% on 2021.

Secondary processed wood product imports higher than in 2019

Of secondary processed wood products, joinery (such as doors and windows) became the most valuable EU import product group from Indonesia in the first half of 2022, standing at USD 83 million. This represents 36% growth in value over the equivalent period in 2021 and 22% on 2019.

Mouldings imports grew to USD 82 million in the first half of 2022, a year-on-year quarterly rise of 29%, and around 27% growth in value over 2019. Marquetry imports grew 68 in comparison to the same period in 2021 and 27% compared to the same period of 2019. [Figure 2.2.1]

 

HS 48 paper products still below pre-COVID levels

The value of EU imports from Indonesia of HS 48 paper products in the first half of 2022 were 27% up on the same period of 2021, but 8% below 2019 levels at around USD 135 million.

Belgium’s imports of HS 48 products remained the largest among the EU MS, at over USD

27 million in the first half of 2022, up 129% compared to the same period in 2021, and up 11% on 2019 values. Greece’s imports of HS 48 Indonesian in the first six months of 2022 were worth USD 19 million, a 50% decline on the same period of 2021, and 21% lower than the same period in 2019.

Italy’s imports stood at USD 24 million in the first half of 2022, up 159% on the value of imports in the same period of 2021, but only 3% above 2019 levels. Both the Netherlands and Spain experienced significant growth in the first half of 2022 compared to 2021 with respective half-year-on-half-year growth of 136% and 71%. [Figure 2.3]

 

HS 94 wooden furniture imports from Indonesia continue to grow

EU imports of Indonesian wooden furniture in the first half of 2022 were worth USD 321 million, up 33% on the same period in 2021 and 57% on 2019. [Figure 2.4]

The Netherlands was the biggest importer of Indonesian wooden furniture among the EU MS in the first half of 2022, with its total at USD 74 million, up 23% compared to 2021 and 6% on 2019.

Germany imported Indonesian wooden furniture worth USD 57 million in the first half of 2022, an increase of 12% on 2021 and 47% on 2019.

Belgium’s Indonesian wood furniture imports in the first half of this year were worth nearly USD 56 million, up 38% on the same quarter in 2021 and nearly 117% on the 2019 value.

France’s imports of Indonesian wood furniture reached USD 43 million in the first half of 2022, up nearly 39% on 2021, nearly 81% on 2019.

Italy, Spain and Denmark’s imports of Indonesian wood furniture imports followed the general EU trend, with significant growth in the first half of 2022 compared to both 2021 and 2019.