DEMAND ANALYSIS OF INDONESIAN SAWN TIMBER EXPORT VOLUME TO JAPAN MARKET

Abstract

The researcher studies the demand analysis of Indonesian sawn timber export volume to Japan market (period 2006 - 2008). The researcher is studying the significance of each factors that can shift the sawn timber demand curve which are Japan Gross Domestic Product (GDP), Japan Consumer Preferences, the transportation price which is FOB (Freight On Board), and Japan exchange rates toward USD. The factors is chosen by the researcher according to the demand theory; variables that can shift the demand curves. The researcher realizes the problem when the researcher looks at the decrease of lumber volume export to the world. Almost every export lumber from Indonesia to the world is almost decreasing start from 2007 to 2008. Then the commodity that dramatically changes in high percentages is sawn timber export volume to world market. Because world market is too large for researcher to study, the researcher takes Japan market as the specific destination. The researcher also checks the Japan GDP to know the purchasing power of Japan country. Unpredictable, the result is very interesting, Japan has well purchasing power but the demand of sawn timber is decreasing dramatically. By analyzing the data, the researcher fined the result of the research are; 1) There is insignificant between Freight On Board and sawn timber export volume to Japan market. 2) There is negative significant between Gross Domestic Product and sawn timber export volume to Japan market. 3) There is positive insignificant between exchange rates Yen to USD and sawn timber export volume to Japan market. 4) There is positive significant between consumer preferences and sawn timber export volume to Japan market.