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