In a move to strengthen bilateral trade relations, the Embassy of the Republic of Indonesia in London hosted a pivotal Stakeholders Dialogue with the UK timber industry on January 8, 2025. The initiative comes as part of Indonesia’s efforts to increase timber exports to the UK, amidst growing concerns over sustainability and regulatory compliance.
The dialogue focused on overcoming challenges related to sustainability, a key issue raised by European Union and UK policies such as the European Union Deforestation Regulation (EUDR) and the UK Timber Regulations. Both regulations emphasize the need for timber products to meet strict environmental and legal criteria. Despite these concerns, the forum reached a consensus on the desire to boost the import of Indonesian timber, underscoring the industry’s recognition of Indonesia’s commitment to sustainability.
In his opening remarks, Indonesian Ambassador to the UK, Ireland, and the International Maritime Organization (IMO), Desra Percaya, addressed the lingering negative perceptions surrounding Indonesian timber, particularly related to deforestation issues. “Indonesian timber products are known worldwide for their beauty, durability, and quality. However, they continue to be viewed through the lens of unsustainable practices, despite the comprehensive measures Indonesia has implemented to meet the sustainability standards required by both the UK and European markets,” he explained. He specifically highlighted Indonesia’s Timber Legality Assurance System (SVLK) and Sustainable Forest Management programs, both of which aim to meet international environmental and legal requirements.
The forum featured key speakers from the UK timber industry, including Chris Sutton, Chairman of Timber Development UK, who emphasized his long-standing positive experience in trading with Indonesia. “I have been doing business with Indonesia for over 40 years, and the quality of their timber has always exceeded expectations. This forum is an opportunity to reaffirm the potential for deeper cooperation between our countries,” Sutton remarked.
Emily Fripp, Managing Director of EFECA, echoed the sentiment, noting the sector’s uncertainty over the UK government’s ongoing discussions regarding the inclusion of forest-risk commodities in UK policy. “While the sector awaits final policy updates, I believe that Indonesian timber will remain an essential part of the UK’s supply chain,” she said confidently.
David Hopkins, CEO of Timber Development UK, also weighed in, underlining the importance of promoting the exceptional quality of Indonesian timber. “Discussions like these are crucial for fostering understanding and ensuring that Indonesian products are recognized for their sustainable and high-quality attributes,” he stated.
One of the key advancements discussed during the forum was Indonesia’s update to the SVLK system in December 2022. By integrating advanced technologies, including geolocation tools and information transparency measures, Indonesia has bolstered the traceability and sustainability of its timber products. This update aligns with European and UK regulations, ensuring that Indonesian timber no longer faces additional due diligence scrutiny.
Ayu Siti Maryam, Trade Attaché at the Indonesian Embassy in London, highlighted the positive trend in Indonesian timber exports to the UK, which have grown by 0.45% over the last five years. Despite this increase, she acknowledged that Indonesia’s market share remains relatively small compared to timber products from other countries like China, Sweden, and Finland. Nevertheless, she remains optimistic about future growth, particularly in light of the UK government’s push to increase timber use in construction and the World Bank’s projections, which suggest global timber demand could quadruple by 2050.
“We believe that the UK’s commitment to sustainable building practices, coupled with the increasing global demand for timber, provides significant opportunities for Indonesia to expand its footprint in the UK market,” said Maryam.
As discussions surrounding sustainability and forest management continue to evolve, the partnership between Indonesia and the UK timber industry is poised for significant growth. The continued engagement between both countries reflects a shared commitment to environmental responsibility, trade expansion, and the promotion of high-quality, sustainable timber products.