Indonesian timber product companies record losses14 November 2011
Large Indonesian timber product companies are reporting poor performances in their latest results according to the Jakarta Post.
Companies cited as experiencing losses and declining demand include panel producer PT Sumalindo Lestari Jaya Tbk, which recorded a loss of US$23.2m in the first nine months of 2011, and another panel manufacturer PT Tirta Mahakam Resources Tbk, which posted a loss of US$111,000.
One industry analyst told the newspaper that the industry had limited timber supplies and lands for logging. They have to produce limited products and bear large expenses.
However, another company Barito Pacific Tbk has improved its results after diversifying into the plantation and petrochemical sectors. But exports in its wood processing business still registered a three-fold increase.