Despite making a profit
from furniture exports due to the wealkening of the US dollar against the
rupiah, the domestic furniture industry felt the impact of weakening purchasing
power due to economic slowdown and low absorption of the state budget (APBN).
After holding the National Leadership Meeting (Rapimnas) of Indonesian
Furniture and Handicraft Association (AMKRI) 2015 in Jakarta, Tuesday (August
4), Secretary General of AMKRI, Abdul Sobur, suggested that this year, sales of
domestic furniture is estimated to reach IDR 10 trillion.
“Of IDR 10 trillion, it turned out that in January – June
2015, it has decreased by about 20 percent over the same period the previous
year. Even through during the Lebaran, there was an increase in sales of around
8 percent. As an illustration, the number of furniture and handicraft
entrepreneurs of domestic origin is currently around 40 percent. Practically,
between 55 to 60 percent of market share in the country is dominated by
imported furniture and furniture products. Of a market share of about 60
percent, the majority or 90 percent of the products are originating from China,
and the rest is occupied by products imported from Europe and America, he
explained while accompanying Rudi Halim as AMKRI elected Chairman for the
period of 2015-2018.
Overall, AMKRI still is targeting exports at USD 5
billion in the next five years. This is important considering the furniture and
handicraft industry is the future for Indonesia, because it has enormous
development potential, both I terms of raw materials, human resources, and
market uptake. In fact, during the first half of this year, exports grew only 1
percent of the growth expectations which should reach percent this year.
Sobur described the condition of furniture and handicraft
exports in the first half from January to June, growth is relatively small,
only 1 percent. When compared ‘apple to apple’, the condition is relatively the
same, because in the same period last year, export value reached USD 920
million. while the condition this year up to June, exports reached USD 232
million. However, we are still optimistic that there are still five months
until the end of this year.
In 2014, export growth reached 4 percent, and this year
exports are targeted to grow 10 percent. Even though the global economic
conditions in Western and Eastern Europe weakened. Exports of rattan-based
products to destination countries Russia and Ukraine decreased. Likewise for
exports of rattan products to Western and Eastern Europe, exports experienced a
decline of about 6 percent. While, exports of wood products to the United
States grew 5 percent.
“In terms of raw material, exports originating from
timber is still high at about 65 percent, and the rest include rattan raw
material at 12 percent, and other raw materials so that overall growth is about
1 percent from the previous year. For new export destination markets, it will
try to enter China as a nontraditional market, which is potential to be
explored. It is not easy to other the Chinese market, because the country
already reached a turnover of above USD 55 billion, while our exports are still
below USD 2 billion.
To enter the Chinese market, with the market in China
which has reached USD 80 billion, we can enter gradually. AMKRI is optimistic
to reach exports of USD 300 million to China, by trying to exports products
which are not manufactured in China, such as carved teak wood and handicrafts
that use specific timber. In addition to China, we will try to enter the Middle
East market, which is not large, 4 – 5 percent, but the market is stable. A
number of countries targeted are United Arab Emirates, Qatar, Kuwait and Saudi
Arabia. Because we have relatively never been there, we expect exports to reach
USD 200 million, bringing a total of USD 2.5 billion. The important thing is
that we are optimistic that in 5 years it will reached USD 5 billion. “he said.
(E)
Business New - August 7, 2015
No comments:
Post a Comment