Indonesia

Indonesia plans to halt diesel imports by early 2026

According to Indonesia’s Ministry of Energy and Mineral Resources, Minister Bakhril Lahadalia recently reported to President Prabowo Subianto that Indonesia is expected to achieve "zero imports" of diesel fuel by early 2026, marking a significant milestone in the country’s energy independence.

This shift is attributed to the impending operational launch of the Refinery Development Master Plan (RDMP) project in Balikpapan, East Kalimantan. Officially launched on November 10, the project is expected to significantly boost domestic diesel production capacity, enabling Indonesia to fully meet its own fuel demand.

Meanwhile, the Indonesian government is actively advancing its biofuel development plan. According to the energy ministry’s roadmap, Indonesia will formally implement the B50 biodiesel program in the second half of 2026, which involves blending diesel with 50% vegetable oil.

Indonesian government to expand furniture industry into non-traditional markets

Amid growing global pressures, the Indonesian government continues to enhance the competitiveness of its domestic furniture industry to access broader export markets.

Industry Minister Agus Gumiwang Kartasasmita stated that the furniture industry contributed 0.92% to the non-oil and gas GDP in the third quarter of 2025, performing well, with export value reaching USD 9.2 billion in the first half of 2025. The United States remains the largest export market, accounting for 54.6% of exports.

However, the government believes new strategies are needed to explore non-traditional markets such as Eastern Europe, the Middle East, Latin America, India, and Japan.

Indonesian Forestry Entrepreneurs Association to promote PEFC implementation

On November 25, Chairman of Indonesian Forestry Entrepreneurs Association (APHI) Suwarsono stated in an interview that APHI is collaborating with the Indonesian Forestry Certification Cooperation (IFCC) to promote the implementation of the Programme for the Endorsement of Forest Certification (PEFC), aiming to enhance the recognition of Indonesian forestry products in the European market. So far, 93 out of its 400 members have participated in this certification, and the number is increasing annually.

Suwarsono also mentioned that the total export value of forest products is approximately USD 12–13 billion annually. The largest markets remain China and India. The top wood product is pulp and paper, with plywood ranking third.

Indonesia backs Brazil's initiative for tropical forest facility

During the Belém Leader Summit held in Brazil on 6 November, Indonesia’s Special Presidential Envoy for Energy and Climate Change, Hashim Djojohadikusumo, stated that Indonesia would actively participate in Tropical Forest Forever Facility (TFFF) and had committed to matching Brazil’s contribution of US$1 billion.

A COP30 press statement showed that Norway had committed $3 billion over the next ten years, subject to what they called “specific conditions”. France, too, had made a conditional pledge of 500 million euros (around $576.7 million) until 2030. The Netherlands had promised up to $5 million for the secretariat, while Portugal vowed to inject $1 million into the freshly launched fund. Germany endorses the idea, but wants to discuss its financial commitment with Brazil first.

It is reported that the TFFF aims to amass $125 billion in funding, about $25 billion of which is set to be sponsor capital from sovereign sources. 

Forestry ministry prepares four new regulations to strengthen national carbon governance

During the 30th Conference of the Parties to the UN Framework Convention on Climate Change (COP30) on October 11, Indonesia’s Deputy Minister of Forestry, Rohmat Marzuki, announced that the Ministry of Forestry is revising/drafting four regulations to strengthen governance of carbon trading in Indonesia.

Rohmat stated that these regulations include: revising Ministerial Regulation No. 7 of 2023 (on carbon trading procedures in the forestry sector), revising Ministerial Regulation No. 8 of 2021 (on forest zoning and management plans), revising Ministerial Regulation No. 9 of 2021 (on social forestry management), and drafting a new regulation on the utilization of environmental services in protected areas.

Rohmat noted that these four regulations would establish a solid legal foundation for building a credible, transparent, and inclusive carbon market.

Malaysia

Malaysia committed to sustainable forestry management and timber industry

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani mentioned the timber sector continues to play a key function within the nation’s export portfolio, alongside main commodities comparable to palm oil and rubber merchandise.

Speaking to reporters after launching the Malaysian Wood Expo 2025 (MWE 2025) immediately, Johari mentioned that:

On the trade front, timber exports in the first nine months of 2025 fell to RM16.2 billion, down from RM17.1 billion during the same period in 2024. Despite geopolitical disruptions affecting global trade, timber export volumes rose 7.2 per cent to 2.9 million cubic metres, up from 2.7 million cubic metres in the January-September period of 2024. Present tendencies point out shoppers have gotten extra price-conscious, choosing reasonably priced but sustainable wood merchandise.

As of October 2025, a total of 5.85 million hectares of Malaysian forests have been certified under the Malaysian Timber Certification Scheme (MTCS), endorsed by the Programme for the Endorsement of Forest Certification (PEFC), placing Malaysia among the top 10 countries globally with the largest PEFC-certified forest area.

To date, an estimated 268,677 hectares of forest plantation have been planted for raw materials for the timber industry.

Malaysia's construction sector value up by 10.6% in Q3

Malaysia’s construction sector recorded RM45.4 billion in the value of work done in the third quarter of 2025, expanding 10.6% year-on-year, the Department of Statistics Malaysia (DOSM) said.

The robust performance was mainly driven by the special trade activities and residential buildings sub-sectors, which grew 15.3% and 11.6%, respectively. 

Geographically, Selangor, Johor, Sarawak and the Federal Territories (Kuala Lumpur, Putrajaya and Labuan) collectively accounted for 62.1% of the total construction value.

For the first three quarters of 2025, Malaysia’s construction sector achieved a cumulative RM132.2 billion in value of work done — an increase of 13.3% from the same period in 2024. DOSM said the growth was supported by all sub-sectors, particularly special trade activities (23.5%) and residential buildings (17.0%).

Sarawak to implement carbon tax next year

Sarawak Premier Abang Johari announced in the State Legislative Assembly that Sarawak would impose a carbon tax on the oil & gas and energy sectors starting next year. He stated that as Sarawak strives to achieve net-zero emissions by 2050, carbon pricing will become a key policy tool.

The revenue from this tax will be channeled into a dedicated Climate Change Fund to support renewable energy deployment, energy efficiency improvements, grid modernization, forest conservation, and climate resilience projects.

Johari noted that the carbon tax is expected to become a future revenue source for Sarawak.

All forest activities suspended in Peninsula during northeast monsoon season

The Forestry Department of Peninsular Malaysia has stated that all recreational, logging, and planting activities within forest areas should be suspended during the Northeast Monsoon season to prevent accidents and reduce the impact of natural disasters.

The department's Director-General, Zahari Ibrahim, mentioned that they are working closely with the Meteorological Department to monitor weather forecasts, especially during periods of heavy rainfall that could trigger floods.

The 2025/2026 Northeast Monsoon season began in November and will last until March next year, with five to seven continuous heavy rainfall episodes expected during this period.

Thailand

Thai woodworking industry export data from January to September 2025

According to information released by the Office of the Permanent Secretary of Thailand's Ministry of Commerce and the Thai Furniture Association, from January to September 2025, Thailand's exports of furniture and parts reached $1.30 billion (approximately 42.94 billion baht), a year-on-year increase of 12.84%. The top five export destinations were: the United States, Japan, Malaysia, China, and Australia.

During the same period, Thailand's total exports of timber and wood products amounted to $2.48 billion (81.95 billion baht). The top five export destinations were: China, the United Arab Emirates, the United States, Japan, and Saudi Arabia.

Thailand advances its first climate change bill

Thailand is currently advancing its first Climate Change Act. This comprehensive draft legislation, consisting of 205 articles, aims to establish systems for a carbon market, disaster adaptation, climate finance, and a "Measurement, Reporting, and Verification" (MRV) framework.

If approved by the Cabinet, the draft will mark the beginning of the legislative process. It would then proceed through stages of public hearings, parliamentary review, and multiple votes before formal enactment.

Thai Cabinet approves NDC 3.0 to accelerate net-zero target to 2050

The Thai Cabinet has approved an updated Nationally Determined Contribution (NDC 3.0), bringing the country's net-zero emissions target forward by 15 years from 2065 to 2050.

For the period between 2031 and 2035, the new plan proposes a 47% reduction in net greenhouse gas emissions from 2019 levels. This strategic shift aims to enhance Thailand's global competitiveness, align with international standards, and attract around 230 billion baht in foreign investment for green projects.

NDC 3.0 covers emission reductions in five key areas: Energy and Transportation, Industry, Agriculture, Waste, and Forestry and Land Use.

China

China's furniture retail sales grow 9.6% year-on-year in October

According to the latest data released by the National Bureau of Statistics, China's consumer market showed a steady recovery in October, bolstered by the consumer goods trade-in policy and the National Day and Mid-Autumn Festival holidays. Furniture consumption performed particularly well, standing in contrast to the sales trends for building and decoration materials.

In October, national retail sales of furniture reached 17.9 billion yuan, a significant year-on-year increase of 9.6%, demonstrating strong upward momentum. This positive trend is further confirmed by the cumulative data: from January to October, the total retail sales of furniture amounted to 169.5 billion yuan, a notable year-on-year increase of 19.9%, continuing the rapid growth seen in this category this year.

China’s imports of logs and sawnwood both decline

Customs data shows that in October 2025, China's total imports of logs and sawnwood amounted to 4.19 million cubic meters. This represents a year-on-year decline that widened to 10.2% and a month-on-month decrease of 10.3%, ending the brief rebound seen in September. In terms of import value, October imports were valued at $829 million, down 11% month-on-month and 12.2% year-on-year.

Specifically, log imports in October reached around 2.24 million cubic meters, a 16.3% year-on-year decrease and a 12.6% drop from the previous month. The import value fell 20.1% month-on-month and declined sharply by 31.3% compared to October 2024. The average unit price for log imports in October fell 17.9% year-on-year.

Sawnwood imports, meanwhile, fell 7.4% from September to 1.95 million cubic meters, marking a slight 2% decrease year-on-year. The import value decreased 4.9% month-on-month but increased 4% year-on-year. The average unit price for sawnwood imports in October rose 6.2% year-on-year, marking the fourth consecutive month of increase.