FURNITURE PRODUCERS OPTIMISTIC 2013 EXPORT WOULD REBOUND

The Association of Indonesian Crafter and Furniture (ASMINDO) predicted export value of Indonesian furniture products till end ol 2012 dropped by 20% against realization of 2011 due to crisis in Amer­ica and Europe. Players of the furniture and handicraft industry furthermore questioned the Government's commitment who formerly promised to open export access to other destination countries like China, In­dia, Australia, and South Korea.

Chairman of ASMINDO Amber Tjahjono dis closed in Jakarta on Monday (17/12/2012) that he was most disappointed by the Government who up till now had not realized their commitment to alter export market. To prevent declining export per­formance of furniture and handicrafts, according to Amber, early this year the Government had promised to facilitate opening of new export market. According to Amber, without Government's intervention play­ers of the furniture industry who had been export-oriented were in troubled condition. To return to the domestic market, they had to compete against im­ported furniture products from China priced extremely low.

                      

Asmindo, further commented, was pessimis­tic that value of Indonesia’s furniture export could equal export realization of last year of USD 2.2 bil­lion broken down as USD 1.75 billion for the furniture subseclor and USD 450 million for handicrafts. He explained furniture products of Indonesian origin which were export oriented were mostly carved wooden furniture, the quality being much higher than the furniture products on sale at the domestic mar­ket.

Amber admitted that export of furniture prod­ucts in 2012 was not too heartening. However she was optimistic that in 2013 business would rebound. She projected export of furniture in 2013 would increase by 11.42% to become USD 2,9 billion compared to estimated realization to end of 2012 at USD 1.75 billion. Amber stated that in 2012 export fell by 5.4% to become USD 1.75 billion. However for 2013 export was expected to increase to USD 1.9 billion. “We are expectant export of furniture products would again rebound in 2013” Amber concluded.

Amber was certain that in the future the ex­port market for furniture would be better because In­donesian furniture products were good and highly competitive in the ASEAN market. Local producers would constantly strive to strengthen competitiveness to jack up export. She also saw that purchasing power of consumers in ASEAN states were getting stronger while Indonesian furniture were of good quality and highly competitive. Ambar said that the ASEAN mar­ker was potential market for Indonesian furnitures. The high population of ASEAN should be prospective market for Indonesian products.

Furthermore Ambar said that China was a po­tential market for Indonesian furniture products. ASMINDO sets target for export to furniture products to China at USD 100 million for 2013, in line with increasing demand. She mentioned that this year ex­port of Indonesian furniture to China was projected at USD 40 million and in 2013 export performance might come to USD 100 million. According to Ambar, demand for Indonesian furniture products from China kept increasing because the quality was better than China’s domestic products.

Demand for Indonesian furniture products in China according to Ambar was opportunity for Indo­nesian furniture producers the market in Europe and America were losing steam due to global crisis. High enthusiasm for Indonesian furniture products in China could bee seen in exhibitions being staged. “When In­donesian furniture producers displayed their products in exhibitions in China, all the products were sold out” Ambar concluded. (SS)

Business News - December 21, 2012