Furniture and craft
producers were constantly struggling to jack up export of furniture abroad in
the next 4 years. This was necessary to surpass Vietnam and play catch up with
China. AMKRI data had it that Indonesia’s export value for furniture was only
USD 2.5 billion, an increase against the previous USD 1 billion. Compare this
against export of furniture from China which totaled USD 40 billion and Vietnam
USD 4 billion. This was part of the world’s total export of furniture which was
over USD 124 billion.
Vice chairman of AMKRI Rudi Halim stated in Jakarta on
Tuesday [23/9] that he would try to increase export value of furniture. China
and Vietnam were running short of log as raw material, but they could be
leading exporter of furniture exporting, Indonesian furniture producers and
carpenters must expand market and seek for new buyers. Normally sales of wood
and rattan by products relied on one or two fixed buyers. “A platform as such
was sensitive to disturbed demand” he said.
Rudi said that it sometimes happened that during
exhibition abroad, visitors buy sample products but when the exhibition was
over the big order never came. Although there were no follow up order, raw
materials flew in to the expo site country. It was unveiled later that there
were smuggling of rattan to that country.
AMKRI set target for increased export of furniture at USD
5 billion per year which could be attained through international exhibitions.
He again reminded that Indonesia must dare to aim at high
export or be outsmarted by other countries. With Government target growth of
only 5% Indonesia would be left behind by China and Malaysia. AMKRI was
optimistic that Indonesia could reach export target of USD 5 billion in 4 years
if the Government dared to set growth target up to 20% per year. He believed
that was not impossible to meet the target considering Indonesia’s enormous
resources.
He said that it was not just a matter of fulfillment of
raw materials, but more maximized promotional support by the Government. In
respond to that Dir. Gen Panggah Susanto admitted the shortage of raw materials
was still the fearful factor in fast growing furniture industry. Indonesia’s
imported raw materials was from Brazil and New Zealand.
AMKRI data had it that the average growth of furniture
industry came to 14% per year. At the same time imported wood for furniture
broke through 20,000 ton/year of which 30% was bought in the USA. For that matter
Panggah proposed that the Dir.Gen. of Plantation of the Ministry of Forestry be
involved as member of Shareholders Commissioner. Technically, he said, the
Ministry of Industry supported the pursuit of export target through renovation
of industrial equipments worth Rp400 billion this year but the amount was not
fully used.
He again underscored the importance of Indonesia
furniture producers to understand US market preference to increase Indonesia’s
share in US market. He said that the market for outdoor furniture was big
enough in the USA considering that during summer or in some tropical areas many
restaurants, hotels or houses were using their outdoor areas as patio for
outdoor restaurants and recreation centers. (SS)
Business News - September 26, 2014
No comments:
Post a Comment