The Trade Ministry has issued a regulation allowing wood producers to export certain types of sawn timber to revive the struggling wood-based industry.

"This regulation is aimed at affirming and clarifying the previous regulation on wood-based product exports," Trade Minister Mari Elka Pangestu said Friday, adding that the new regulation would become effective March 3.

The ruling replaces two 2004 ministerial decrees jointly issued by the Forestry Ministry and the Trade Ministry, which banned the export of all types of sawn timber.

The government issued the ban because it was thought sawn timber had little value added, and that stopping the exports would help conserve the country's forests.

From 1996 to 1997, the volume of sawn timber exports reached 3.5 million cubic meters, while plywood exports reached 10.2 million cubic meters.

Under the new Trade Ministry regulation, sawn timber with four sides and with a width of less than four square meters are now allowed to be exported.

However, exporters are required to get approval from the Forestry Industry Revitalization Agency.

Also under the new regulation, the Trade Ministry will strictly supervise the export of 32 wood-based products, including veneer, plywood and panel.

"Approvals issued by the agency must be reported monthly to the Trade Ministry, with acknowledgement to the Industry Ministry and the Forestry Ministry," Mari said, adding that only registered exporters would be allowed to export the products.

Indonesia's wood-based industry has been on the decline for the last few years. Data from the Forestry Ministry show the volume of wood exports to Japan decreased by 22.7 percent from 2.45 million cubic meters in 2004 to 1.7 cubic meters last year.

Analysts often blame the decline on confusing governmental regulations regarding the wood-based industry.

The Trade Ministry also issued two other regulations on the supervision of fertilizer and formaldehyde distribution.