Indonesia Potencial Industry is Rattan and Wood

Posted on Jun 20, 2015

Indonesia Potencial Industry is Rattan and Wood

REPUBLIKA.CO.ID, JAKARTA – According to the latest data from the Ministry of Industry, the export value of wooden furniture in 2013 to a record $ 1.26 billion. As for processed rattan reaching 188 million US dollars. “It is expected the next five years could be up to 5 billion US dollars,” said Minister of Industry MS Hidayat on Tuesday (11/3), at the opening of the Indonesia International Furniture Expo (IFEX) 2014 JIEXPO Kemayoran, Jakarta.

The target can be achieved with high quality raw materials in Indonesia. Lots of specific raw materials that become potential in the country. Such as mahogany, teak, rattan up only in Indonesian forests. This has become a high selling point to compete with other countries. If other countries had the opportunity to use these raw materials to achieve high sales value, Indonesia also had to do the same.

Hidayat said the government declared SVLK is a good thing. But these requirements remains a problem for small entrepreneurs. The Government has taken over one year. However, from the Association requested more than one year. The Government will consider the matter. During the financial year TLVS budgeted in the state.

The government promised to be a problem in terms of the competitive furniture products. During this competitive problem comes from the cost of transportation of raw materials to the place of production. Currently the cost is still quite expensive. It is to be combated by the government. “We were promised this,” said Hidayat.

Indonesia has a great potential in rattan and wood processing industries. “Nearly 90 percent of the world’s rattan and wood coming from Indonesia,” said Chairman of Indonesian Furniture and Handicraft Association (AMKRI) Soenoto. Indonesian archipelago from Sabang to Merauke are wood and rattan. A potential is wasted if not utilized.

Soenoto said Indonesia must continue to explore the islands in terms of raw materials. Because in terms of raw materials the country is not difficult. Virgin islands such as Irian, Enggano, Ambon, Aceh, to the West Nusa Tenggara could be explored in obtaining raw materials. Additionally functions such expo is also important to take part in the international sphere.

In four years, the export value increased by 5 billion US dollars. Despite the rise, the problem lies in the implementation of the Timber Legality Verification System (SVLK). Of about 5 thousand exporters, only 600 to 700 who have SVLK. These requirements are still an obstacle for employers because many are not yet ready despite having been suspended for one year. When calculated, the numbers are not so great. Approximately 100 billion dollars to fund this TLVS for SMEs.

Small businessmen objected because the cost is quite expensive in the system. Currently in obtaining TLVS costs around 20 to 50 million dollars. If the government did declare TLVS nice, easy access to at least be given. “I ask the government to be financed SMEs in obtaining SVLK,” said Soenoto. The Government already provides a grace period during the year.

Talking about furniture means talking about competition. Currently in the region still won by Vietnam and China. The export value of Vietnam in furniture reach 5 billion US dollars in 2013 ago. While Indonesia still half. Though Vietnam is only a small country. “It targets the next five years we’ve been able to overtake Vietnam,” said Soenoto. Java in the country is still the largest furniture manufacturer. For world-class still dominated Europe, America and Latin America, Japan, and Africa (republika.co.id)

Indonesia Potencial Industry is Rattan and Wood

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