Indonesian Furniture Exports Up in January-June

Jakarta, Indonesia | July 22, 2008 by D-8 Secretariat

Furniture exports during the January - June 2008 period increased by 9.78 percent compared to the same period last year, from US$ 346,8 million to US$ 380,7 million. According to Indonesian Furniture Association chairman, Ambar Tjahyono, the total export value this year is predicted to be US$ 2,6 billion. “This consists of US$ 2 billion worth of furniture and US$ 600 million in handicrafts,” she said yesterday.

She said, in 2009 furniture exports are predicted to rise by 10 percent or US$ 2,2 billion. To support the increase in exports, Ambar hopes the government will be able to help supply the raw material. So far, the craftsmen have had difficulty finding the raw materials, especially rattan. “Good quality rattan sought by businessmen is hard to find,” she added.

Industry minister Fahmi Idris said rattan is in short supply because rattan farmers outside Java get little guidance in rattan cultivation. The rattan business has only been developed in Java, whereas sources of rattan are located outside Java. “The result is that not enough attention is given to rattan-producing areas and farmers often sell their products illegally,” he continued.

The government plans to build a terminal for wood products and train rattan farmers so as to reduce their illegal sale. The areas that will receive such training are Central Sulawesi, Central Kalimantan, South Sulawesi, Aceh and Papua. However, this will be not be carried out simultaneously. “It will be done depending on available funds,” he said.

Fahmi calls on furniture producers to follow market trends, so that their products can compete with those from other countries. He also recommended that the raw material for Indonesian furniture not be made of 100 percent wood or rattan. “Wood and rattan are rare and expensive commodities,” he concluded.

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