It was recently announced that Indonesian President Susilo Bambang Yudhoyono has put forth his support and appreciation for an important initiative that has been set out by several US-based companies in which they hope to reduce deforestation levels in Indonesia.
The imporantant announcement was made during the Presidents address at the opening of the Tropical Forest Alliance 2020 that was held in Jakarta. The President remarked that he strongly supported conversations that may lead to his country’s ability to achieve its carbon emission level targets. In his remarks he said, “The workshop is also relevant to Indonesia, as one of the countries with the largest tropical rain forest in the world, and world’s largest palm oil production.”
The country is said to want to reduce its carbon emissions by a whooping 26 per cent by 2020 using its own initiatives but is also said to want to reduce its emissions by 41 per cent if it receives assistance from other nations.
The TFA 2020 is a public-private network that is made up of some 400 companies from the CGF (Consumer Goods Forum). The TFA 2020 hopes to reduce or even stop deforestation that is associated with certain commodities such as soy, palm oil, beef and paper, pulp, and plywood. The President went on to say that during the last five years or so, forest-based industries, and this would include plywood manufacturers, were responsible for about 3.5 per cent of the country’s overall economy.
Indonesia is said to be a major producer of pulp and paper, producing an estimated 13 million tons of paper and 8 million tons of pulp last year. The country is also the biggest producer of palm oil and is said to have produced around 26 million tons last year. Details on exactly how much plywood and wood products are at issue here were not released.
Some of the most well-known companies have made statements that they plan to do as much as they can to help reduce or stop deforestation in Indonesia. Some of these companies including names such as Unilever Global, ADM, Golden Agri Resources, Cargill, and APP, have all made substantial commitments that they say will cause their activities to become more sustainable over time. All 400 companies that make up the CGF have said publicly that they will eliminate deforestation techniques that are in their supply chains by the year 2020.
What this will mean to plywood industry, on the whole, remain to be seen. But one thing is certain, the demand for plywood for new homes, cabinetry, and other purposes is skyrocketing and that demand will have to be met. The hope is that new foresting techniques which are a vital part of making plywood will not raise the cost of this versatile product by very much, especially now that the construction and remodeling industry is beginning to recover.
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