Indonesia: Furniture and craft entrepreneurs should diversify export markets

April 12, 2019
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Furniture and craft entrepreneurs who are members of the Indonesian Furniture and Craft Entrepreneurs Association (Asmindo) hosted the Jogja International Furniture and Craft Fair (JIFFINA) in March.

Speaking at the opening the Chairman of JIFFINA 2019, Endro Wardoyo, said that entreprenuers need to be developing markets outside their traditional US market.

He continued by pointing out that there is huge potential in new markets in the EU such as the Netherland, Germany, France, Britain and Italy. In addition markets in Japan and South Korea should be examined.

At JIFFINA 2018 the target for sales was US$64 million but at the recent show it was announced that annual sales

of US$80 million was the target. The Director General of Small and Medium Industries, Gati Wibawaningsih, said that the Ministry of Industry will continue to encourage expansion of the small and medium industries nationally as they play a vital role in employment generation.

In related news, Airlangga Hartarto, Minister of Industry, said the government continues to support the performance of labor-intensive and export-oriented manufacturers in order to strengthen the structure of the national economy.

According to Airlangga, the development of the domestic furniture industry has great prospects as it has available abundant wood and rattan raw materials.

“Lightwood’ export promotion in Vietnam

The Ministry of Trade will seek ways to help manufacturers boost exports of processed ‘lightwood’ to Vietnam. The first step was made when a Business-toBusiness event was held in Ho Chi Minh City. The aim of this was to increase the interest of importers in processed Albizia falcataria and Jabon wood (collectively traded as lightwood).

The Director, Export Development in the Ministry of Trade, Arlinda, said that demand for wood products in Vietnam is surging and this is a good opportunity for Indonesain exporters of ‘lightwood’ products.

Arlinda reported that Indonesia's ‘lightwood’ exports to Vietnam in 2017 were valued at just US$10.48 million but this could be increased substantially.

The promotional effort in Vietnam resulted in a memorandum of understanding between Indonesian companies with members of the association of Vietnamese Handicraft and Wood Industry Association (HAWA) and the Binh Duong Furniture Association (BIFA) aimed at furthering business ties.