Return : Study of Management, Economic and Bussines
Vol. 5 No. 7 (2026): Return: Study of Management, Economic and Business

The Determinants of Indonesia's Processed Wood Export Performance

Feridah Feridah (Universitas Borobudur, Indonesia)
Darwati Susilastuti (Universitas Borobudur, Indonesia)
Pudji Astuty (Universitas Borobudur, Indonesia)



Article Info

Publish Date
10 Jul 2026

Abstract

In the context of domestic supply-side constraints and fluctuating global demand, the Indonesian processed wood export sector is confronted with substantial obstacles. Although Indonesia has sizable forest resources, the export performance of processed timber products has varied significantly among provinces between 2016 and 2024, as a result of a variety of logistical and production factors. The objective of this investigation is to evaluate the export performance of Indonesian processed wood products in the context of domestic processed wood production, forestry and wood processing investment, educated labor in the forestry sector, and logistics infrastructure. Panel data regression analysis is implemented in the investigation. The sample was comprised of 11 provinces in Indonesia that were observed annually from 2015 to 2024. The data was obtained from the Ministry of Environment and Forestry, the Ministry of Investment/BKPM, and Statistics Indonesia (BPS). The results of the panel data regression indicate that domestic processed wood production, forestry and wood processing investment, educated labor in the forestry sector, and logistics infrastructure simultaneously have a significant effect on the export performance of processed wood products. Partially, each independent variable also demonstrates a significant and positive influence on export performance. These findings suggest that increasing domestic production capacity, attracting investment to the forestry sector, developing a skilled workforce, and improving logistics infrastructure are key determinants in enhancing Indonesia's competitiveness in global processed wood markets

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Journal Info

Abbrev

return

Publisher

Subject

Economics, Econometrics & Finance

Description

The Journal RETURN is a double blind peer-reviewed academic journal and open access to social and scientific fields. The journal is published monthly by PT. Publikasiku Academic Solution. The Jurnal RETURN provides a means for sustained discussion of relevant issues that fall within the focus and ...