Editor’s Note
- Timber prices in Indonesia are comparable to those of precious metals
- Gaharu, a valuable resin
- Ebony, a dense black wood
- Sandalwood, an aromatic wood with stable value
- Merbau, an important wood in tropical construction
- Teak, a standard for the furniture industry
- Rosewood, a premium decorative wood
- Mahogany, a mid-range furniture wood
- Mindi, a light interior wood
Timber prices in Indonesia are comparable to those of precious metals
Indonesian timber is highly valuable and remains an important raw material from Indonesian forests. Some species are considered premium due to their limited supply and specific applications.
The perfume industry, luxury furniture, and even musical instruments are important buyers. The price of some woods can even be compared to that of precious metals.
The most valuable species belong to the aromatic wood group. Some tropical hardwoods are also sought after for their material strength. The combination of physical properties and industrial needs means that the price of certain woods far exceeds that of conventional construction timber.
Gaharu, a valuable resin
Gaharu wood is one of the most valuable raw materials. The aromatic resin produced by fungal infection is its main source of value. This material is used for high-quality perfumes and incense. The domestic price of high-quality agarwood can reach approximately 53 million Indonesian rupees per kilogram.
On the global market, its value can reach 133 million Indonesian rupees per kilogram. With a gold price of 1.965 million Indonesian rupees per gram, one kilogram of agarwood is equivalent to approximately 67 grams of gold.
Demand comes primarily from the Middle East and East Asia. Production requires special treatment, as the resin does not occur naturally in all trees. Farmers typically inoculate the trees with fungi to stimulate agarwood production before harvest.
Ebony, a dense black wood
This tropical hardwood also has considerable economic value. Ebony is known for its deep black color and dense wood grain. This material is widely used for high-quality musical instruments and furniture.
The highest quality ebony is traded for approximately 7 million Indonesian rupees per cubic meter. Japan and European countries are the main markets.
Due to its high density, the wood sinks in water. The tree grows slowly, which limits the supply. After felling, a lengthy drying process usually follows before the wood is ready for use.
Sandalwood, an aromatic wood with a stable value
Sandalwood belongs to the group of aromatic woods and has a lower price than agarwood. This commodity is traded for approximately 500,000 to 1 million Indonesian rupees per kilogram.
The main value comes from the essential oil, which is used in personal care products and perfumes. The largest export markets are India and China. Sandalwood trees grow in dry regions and require a host plant during their growth period.
Merbau, an important material in tropical construction
Merbau is an important material for heavy construction and high-quality floors. Its reddish-brown color and resistance to termites make it a common material in tropical regions.
The price of merbau ranges from 6 to 9 million Indonesian rupiah per cubic meter. Production takes place primarily in Papua and Maluku. This wood is widely used for floors and buildings that require high strength.
Teak, the standard for the furniture industry
Teak remains the standard for the furniture industry. This material is used for buildings, ships, and high-quality furniture. The price of premium teak ranges from 15 to 20 million Indonesian rupiah per cubic meter.
Average-quality teak trades for 8 to 12 million Indonesian rupiah per cubic meter. At the current gold price, one cubic meter of premium teak is equivalent to approximately 10 grams of gold.
The teak planting cycle is long. Trees are typically not harvested for more than twenty years. The wood is dried to reduce its moisture content before being processed into finished products.
Sonokeling, premium decorative wood
Sonokeling is a valuable decorative wood. Its dark color and contrasting patterns are its main appeal. This wood is used for high-quality musical instruments and furniture.
The price of Sonokeling ranges between 10 and 15 million Indonesian rupiah per cubic meter. Its resonant properties make it suitable for guitars and other instruments.
Mahogany, Mid-Range Furniture
Mahogany is widely used as a furniture material. Its reddish-brown color and smooth texture make it easy to finish.
The price of mahogany ranges from 5 million to 7 million Indonesian rupees per cubic meter. This material is often used as an alternative to teak in mid-range furniture.
Mindi, Light Interior Wood
Mindi is a light interior wood. Its color ranges from light brown to reddish.
The price of mindi ranges from 3 million to 4.5 million Indonesian rupees per cubic meter. The furniture industry uses this wood for decorative products and light furniture.
The price of high-quality wood follows global demand. The main importing countries are East Asia, the Middle East, the United States, and Europe. This stable demand ensures that the value of forest products remains high.
The availability of high-quality wood depends on a long planting cycle. Production requires strict forest management to prevent a long-term decline in supply. Without logging regulations, some timber species risk becoming increasingly scarce. ***obs
