• Exports of non-oil/gas commodities growing        1
• Diversification changes the market        3
• Tsunami affects exports from Indonesia to Japan        3
• Exports of timber products forecast to rise 30%        4
• Exports are forecast to reach US$ 170 billion in 2011        4

• Introduction        6
• Structure of pulp and paper industry        7
• Main players in pulp and paper industry        10
• Production        12
• Basic material requirement for pulp industry        14
• Exports and Imports        17
• Dumping allegations continue to target Indonesian pulp and paper industry        20
• Aspect of Demand        22
• Prices        24
• Investment        24
• Projected production and consumption of pulp and paper        26
• Hurdles to be removed to boost investment        27
• Industrial Risks        27
• Prospects of pulp and paper industry in Indonesia        28
• Conclusion        29

• Backgrounds        30
• Pulp and paper industry main pillar        31
• Industrial Timber Estates (HTI)        33
• Financial performances        33

• Forest management in Indonesia        35
• Kalimantan has largest production forests        37
• East Kalimantan has largest man-made forests        38
• BUMNs dominate IUPHHK of natural forests        40
• The government plans to expand people's forests        41
• Only few HPH and HTI holder have certificate        42
• Production of logs up slightly        42
• Riau largest producer of logs        42
• Supplies in 2009 reach only 78%        43
• Utilization not up to plan        44
• Shortage in basic material, log export restricted        45
• HPH investment in 2010 total Rp7.6 trillion        45
• Large company groups plan investment in HTI in Kalimantan and Papua        46
• Conclusion        46

• Backgrounds        48
• Production of Plywood Shrinking        48
• Japan the largest export market for Indonesian plywood        51
• Main producers of plywood in Indonesia        53
• Conclusion        55

• Current Issues        56
• Production capacity Stagnant        56
• Production of Furniture Growing Sluggishly        57
• Exports of Furniture Growing in 2009        58
• Imports of Furniture Growing        58
• Producers of Furniture        59
• Legality Timber Certificate        60
• Conclusion        61

• Geely to build assembling factory next year        65
• Assets of Japfa up to Rp8.37 trillion after merger        65
• Lenzing to expand with an investment of US$ 130 million        65
• Six local investors to build food estates in Merauke        66
• CIMB Niaga to acquire multifinance company        66

• Deficit in state budget smaller than target in 2010        67
• Indonesia needs US$18 billion to build new oil refineries        67
• Import duties on industrial basic material scrapped        67
• High cost economy hampers development of forestry industry        68
• Heavy equipment production surges 161% in 2010        68
• An Rp10 trillion port project to be built in Madura        68
• Indonesia's economic growth target set at 6.9% for 2012        69
• Indonesia needs $34 billion a year for oil and gas sector        69
• Nine geothermal concessions set for development this year        69

• Directory of Pulp and Paper Companies and Wood-Based Companies in Indonesia        71

• Economic Indicators        74
• Export and import        75
• Gross Domestic Product        76
• Oil Price and Foreign Exchange        77
• The Indonesian Economic Trends        78