REPUBLIKA.CO.ID, JAKARTA - Indonesian timber export to European Union (EU) is declining due to other potential markets. For the last ten years, the contribution decreases from 18 percent to 14 percent.

"Other non-European countries are also interested in our timber production," Minister of Trade, Gita Wirjawan, said during his opening speech at EU-Indonesia Trade Support Programme (TSP) II, on Tuesday. He emphasized that Indonesia would not depend on only a single market.

With the growing concern over environment, production cost tends to be higher. Timber producers are forced to adjust the price. On the demand side, Wirjawan said that the increasing price was usual.

Wirjawan mentioned that Indonesia was getting ready to face trade liberalization. One of the challenges is tariff competition for export commodities. Government is fixing several crucial matters, such as product certification, to welcome European market.

Indonesia must also meet the standard of food security. The revamping is believed to help Indonesia in which 65 percent of its exports are agriculture products facing issues in World Trade Organization (WTO). Indonesia is also developing information management system to obtain data of standard and technical regulation.

For 30 years, Indonesia has become an economic partner for EU. EU-Indonesia trade volume last year was 32 billion USD. Indonesia, having a population of 250 million people, is one of EU's biggest market.

The Head of EU Delegation, Julian Wilson, said Indonesian market would be bigger from year to year. Therefore, the country needs a real effort and transformation to enhance its competition.

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