Furniture and craft producers were constantly struggling to jack up export of furniture abroad in the next 4 years. This was necessary to surpass Vietnam and play catch up with China. AMKRI data had it that Indonesia’s export value for furniture was only USD 2.5 billion, an increase against the previous USD 1 billion. Compare this against export of furniture from China which totaled USD 40 billion and Vietnam USD 4 billion. This was part of the world’s total export of furniture which was over USD 124 billion.
Vice chairman of AMKRI Rudi Halim stated in Jakarta on Tuesday [23/9] that he would try to increase export value of furniture. China and Vietnam were running short of log as raw material, but they could be leading exporter of furniture exporting, Indonesian furniture producers and carpenters must expand market and seek for new buyers. Normally sales of wood and rattan by products relied on one or two fixed buyers. “A platform as such was sensitive to disturbed demand” he said.
Rudi said that it sometimes happened that during exhibition abroad, visitors buy sample products but when the exhibition was over the big order never came. Although there were no follow up order, raw materials flew in to the expo site country. It was unveiled later that there were smuggling of rattan to that country.
AMKRI set target for increased export of furniture at USD 5 billion per year which could be attained through international exhibitions.
He again reminded that Indonesia must dare to aim at high export or be outsmarted by other countries. With Government target growth of only 5% Indonesia would be left behind by China and Malaysia. AMKRI was optimistic that Indonesia could reach export target of USD 5 billion in 4 years if the Government dared to set growth target up to 20% per year. He believed that was not impossible to meet the target considering Indonesia’s enormous resources.
He said that it was not just a matter of fulfillment of raw materials, but more maximized promotional support by the Government. In respond to that Dir. Gen Panggah Susanto admitted the shortage of raw materials was still the fearful factor in fast growing furniture industry. Indonesia’s imported raw materials was from Brazil and New Zealand.
AMKRI data had it that the average growth of furniture industry came to 14% per year. At the same time imported wood for furniture broke through 20,000 ton/year of which 30% was bought in the USA. For that matter Panggah proposed that the Dir.Gen. of Plantation of the Ministry of Forestry be involved as member of Shareholders Commissioner. Technically, he said, the Ministry of Industry supported the pursuit of export target through renovation of industrial equipments worth Rp400 billion this year but the amount was not fully used.
He again underscored the importance of Indonesia furniture producers to understand US market preference to increase Indonesia’s share in US market. He said that the market for outdoor furniture was big enough in the USA considering that during summer or in some tropical areas many restaurants, hotels or houses were using their outdoor areas as patio for outdoor restaurants and recreation centers. (SS)
Business News - September 26, 2014