Indonesian is one of
the world’s furniture manufacturers. With the support of abundant raw material
resources, it is easier for furniture manufacturers to compete with foreign
manufacturers. Facing the implementation of the ASEAN Economic Community (AEC)
2015, national furniture businesses admitted that they have prepared to compete
with furniture entrepreneurs, especially in the ASEAN region. And, the
Indonesian furniture industry operators are also trying to increase cooperation
with furniture industry operators from different countries in ASEAN.
General Chairman of
the Indonesia Furniture and Handicraft Industry Association (Asmindo), Ambar
Tjahyono, in Jakarta on Tuesday (6/11), said that with the soon implementation of AEC
2015, furniture and handicraft industry should prepare themselves as best as
possible, one strategy is by strengthening cooperation with entrepreneurs in
ASEAN countries, especially in marketing. According to Ambar, if Indonesia
should stand alone, if will be difficult, even through Indonesia has an
abundant raw material potential. He believes that the strengthening of
cooperation in marketing and in the form of investment with ASEAN entrepreneurs
will further strengthen business dealings with ASEAN entrepreneurs, amid the
outpouring of Chinese products.
He reminded that the
main competitor in the furniture business currently is not ASEAN countries, but
China, who with its technological capabilities could produce goods in large
quantity and at competitive prices so it has an incredible competitiveness. To
that end, Ambar said, before the implementation of AEC 2015, through the ASEAN
Furniture Industries Council (AFIC) forum, strengthening of cooperation is very
important in facing the onslaught of Chinese products. He said that Indonesia
has abundant raw material resources and quite a lot number of trained human
resources. But because Indonesia has a very large population, it has become a
lucrative market for Chinese products which prices are very competitive.
Ambar said that the
realization of Indonesia’s furniture exports to a number of foreign countries in
the world during the first quarter of 2013 reached approximately USD 450
million or increases around 4% compared to the same period last year. Factors
driving the growth in realization of furniture export are shift of
characteristics of buyers who prefer handicraft products produced by medium or
large industry rather than those made by the home industry.
Moreover, according to
Ambar, the factors driving the growth is the opening of new markets, such as
South Korea, India, China, and Middle East in the midst of conditions of Europe
and United States who have been sluggish due to recovery period from crisis.
He said that today
buyers prefer goods produced by medium industry although the price is higher
than those produced by the home industry. However, he admitted that home
industry craftsmen still have weaknesses in some areas. Nevertheless, his party
is preparing a wide range of trainings for home industry craftsmen so they will
be more open-minded and not stuck in home-industry scale and can improve. The
weakness of home industry craftsmen today is there is a lot who has not been
aware that export activity, instead of making quality goods also requires
extensive knowledge in order to improve competitiveness. (E)
Business News - June 14,2013
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