The Government must bail
out Small-and-Medium Industry [IKM] in the process of making Wood Legality
Verification System [SVLK] to be fair to all stakeholders and for credibility
of Indonesian businesspeople. The amount was notably justifiable especially to
compare with unnecessary expenditures. The cost was affordable and proportional
so IKM could have the power to jack up national export. “There are around 4,000
IKM, each needed Rp 30 million per SLVK all totaling Rp 120 billion needed”
Chairman of the Association of Furniture Producers [AMKRI] Soenoto disclosed to
Business News [4/7].
The Ministry of Industry once set target to bail out 100
SLVK for IKM in furniture Industry in 2014. The SLVK was particular given to
small business units who had exported their product. “If the Government is sure
that SLVK brings more benefit than problem, just do it the bailout. By
calculation, Rp 120 billion is less than civil servant expenses [SPJ] which is
around Rp 20 billion it’s a big mistake to see SLVK as a burden” Soenoto said.
One IKM company got one certificate. The Ministry of
industry planned to collaborate with Asmindo Association. A team of the
Ministry would select IKM companies based on the agreed criteria. Priority
would be given to IKM which had done exporting, because the wood being exported
must have their origin known so they were marketable. Some buyer countries had
set up standard of wood legality, illegal. “We believe there is much benefit of
SLVK. The furniture industry alone had posted turnover of around USD 2 billion
per annum. The market destination is nearly spread out worldwide including the
USA, Europe, China, the Middle East and Latin America. All in all there are 120
countries who buy our furniture product”. (SS)
Business New - July 11, 2014
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