Kuching: Indonesia’s decision to enforce the ban on the export of sawn timber is expected to have minimal impact on Sarawak, according to Sarawak Timber Association (STA) council member Lau Swee Nguong.

"We’ve our own sawn timber," Lau, who is also the association’s sawmilling committee chairman, said.

He said that he does not foresee any significant impact of such a move on the state.

Any shortfall in supply for local consumption could be met by local production, except that "end-users may have to pay for slightly higher prices," he told Bernama.

STA chairman Datuk Leo Chai also expressed similar views.

According to Lau, the managing director of Sibu-based Hua Seng Sawmill Co Bhd, the imported sawn timber brought in through Tanjong Mani and through border points in Kapit, Sirikin and Lubok Antu is of low grade used in the local construction industry and for export used as packing materials.

However, he said that the impact could be quite significant in Peninsular Malaysia where its wood-making industries, especially furniture-makers, import substantial amount of low-cost sawn timber from Indonesia.

Sarawak timber consultant Philip Ho said that the Indonesian government took the steps to enforce the ban on the export of sawn timber about two weeks ago.

"Even if they could plug the leak to the extent of 30 percent that would still be very substantial, perhaps a few million cubic metres," he said.

Ho said the new Indonesian government of President-elect Sosilo Bambang Yudhoyono is expected to further tighten the screw on anti-smuggling activities, possibly with the help of foreign expertise.

"We are talking about a huge volume here," he said.

"You stop even 30 percent and that is still a lot coming from a logging nation like Indonesia."

Malaysia’s logging industry is largely based in Sarawak, which produces about 11 million cubic metres annually, but with only 40 percent allowed for export in log form with the rest of local processing to create jobs and gain value added.

Exports in the first half of the year have increased quite significantly along with much better prices compared with the same period last year.

Timber is one of the state’s main sources of revenue after oil and gas. It runs into several billions of ringgit a year in export value.