Furniture and handicraft industry in Indonesia is believed to have begun to rise again after it was facing problem of raw material supply in the past few years. Export growth in 2012 was projected is least at 5-10%. Its rise is supported by Timber Legality Verification System (SVLK) policy so that Indonesian wood products can be accepted in the European and US market and the ban on the export of raw rattan starting January 1, 2012 for domestic downstreaming. The Association of Indonesian Wood and Rattan Furniture (AMKRI) stated that total export value of furniture products nationwide reached USD 1.7 billion in 2012.
Soetono, Chairman of AMKRI in Jakarta on Monday (July 8), predicted that in line with the improvement of the world’s demand for furniture and handicraft, Indonesia targets furniture exports to increase by 20% this year from the total exports of furniture and handicraft last year at USD 7 billion. Participation in international exhibitions is expected to boots the growth of furniture exports. We believe that the prospect of furniture and handicraft market is still growing”, he said.
Soetono predicted that this year, furniture and handicraft exports will reach USD 2 billion a year and USD 2.5 billion in 2014. Related to the government’s plan increase target of growth in exports of furniture and handicraft products nationwide at USD 5 billion in the text five years, entrepreneurs are optimistic on condition that the government provides support, either through appropriate regulation or other components such as infrastructures and facilitating exhibition. Soetono was optimistic that in the next five years, the export value of this industry can be a barometer, especially in the ASEAN region.
According to Soetono, the furniture industry had received attention for being able to absorb a lot of workers and being a reliable source of foreign exchange revenue. To raise the reputation of Indonesian furniture internationally, synergy among ministries/agencies is needed, for example in human resources development and appropriate technology. In the near future, the association will also finalize the roadmap and action plan for the furniture industry.
Indonesian furniture products have been exported to several countries in the European region, America, Middle East, and Asia. Some countries which are relatively new markets for Indonesian furniture exports include Russia, India, and Latin America, expect Argentina whose portion is still very small. On the other hand, foreign investment in the furniture sector entering Indonesia so far is from Germany, Finland, Taiwan, and the most recent is from the Philippines who was eyeing Cirebon as a rattan industry basis.
Meanwhile, Indonesia Furniture Industry and Handicraft Association (Asmindo), predicted that Indonesia’s furniture exports to China reached USD 100 million (Rp. 924 billion) in 2013. This target increased two-fold compared to this year which is estimated only at USD 40 million and last year at USD 30 million. “This figure will rise again to USD 150 million in 2014”, said General Chairman of Asmindo, Ambar Tjahyono.
He said that demand for furniture from China is very large and continues to increase. This condition is a promising opportunity for furniture industry operators in the country in the midst of market downturn in Europe and United Stated, which have been the main markets. Enthusiasm for Indonesian furniture products in China is evident from result of exhibition that was held there. (E)
Business News - July 10,2013