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End of supply of Bangkirai and Merbau in sight (press release of April 15, 2009)

After the ban on the export of Iron wood, the Indonesian Government has announced that based on a prediction of the Ministry of Agriculture and Forestry, Bangkirai and Merbau timber will no longer be allowed to be felled and exported as per the year 2014 at the latest since the forests will have by then reached its Government controlled felling capacity. Felling concession contracts which will end after April 2009 will not be extended. This will imply that raw timber prices will gradually increase with the disappearance of concessions as less raw timber will become available. In an attempt to save the Indonesian forests the Government will most probably ban the felling of all tropical hardwood in the same year of 2014. Coconut wood and other tropical Indonesian softwoods are not on the list as yet.      

All Iron wood prohibited from being exported (press release of October 22, 2008)

In addition to the press issue of the Indonesian Government of November 25, 2007 (see below), a new announcement was made that as from October 22, 2008 Iron wood shingles are prohibited from being exported even when these are part of a prefabricated house or gazebo. Any company not complying to this new regulation will be revoked its building and export license, whereas the company's director will face a prison term plus a hefty fine imposed to the company. A number of  countries have followed up on the ban and may confiscate and/or destroy all Iron wood shingles ex-Indonesia found in a container at destination. We have anticipated on the Government's decision since last year and have meanwhile developed an alternative solution with a type of wood as strong and durable as Iron wood (and some say even more beautiful). There are no export restrictions for this type of wood. E-mail us at contact@baliwoodworld.com for more information.

Price increase of raw materials (press release of June 1, 2008)

The Indonesian Government has gradually increased the price for fuel during the last 8 months with almost 200%. The effect is that the prices for all of our houses have increased with 12.5% as per June 1, 2008     

Iron wood prohibited (press release of November 25, 2007)

The Indonesian Government unexpectedly decided that Iron wood will be prohibited from being exported as from November 20, 2007. This implies that we are not longer able to supply Iron wood shingles until the ban is lifted. However, to a certain extent we are allowed to export houses with an Iron wood shingle roof, provided the volume of Iron wood shingles is a certain predefined fraction of the volume of wood used for the house (Bangkirai or Merbau). This regulation may not hold forever, as such, our architects and engineers came with a simple, but even so clever idea to replace the Iron wood shingles with another timber species which we treat with a very special coating. We have tested the new system for 6 months and the results are phenomenal. 

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Last modified: August 12, 2008

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