Indonesia to Promote Furniture Products in China

TEMPO.CO, Jakarta - Deputy Trade Minister Bayu Krisnamurthi said that there are four outlets to promote Indonesian furniture products in China.

The outlets called 'House of Indonesia' will promote furniture, textile and other Indonesian commodities in that country, Bayu said on Tuesday as quoted by Antara News.

"The four outlets will become a permanent promoting agents that will also sell Indonesian products in China mainly furniture," he told reporters.

The outlets are located in different places in the country - Shanghai, Nanning, Tianjin and Yiwu.

The outlets are owned by Indonesian businessmen, Chinese businessmen or jointly owned by Indonesian and Chinese businessmen.

"The one in Shanghai is owned by Indonesian businessman and the one in Nanning owned by Chinese businessman. The Houses of Indonesia in Tianjin and Yiwu are joint ventures," he said.

He stated that classy products such as furniture from Indonesia are higher in demand among high class people in China.

Rich people in China make up only for 1 to 2 percent of the population, but it could mean 15 million to 20 million people.

Indonesia's furniture exports to China has increased fast in the past five years, growing by 20.5 percent per year on the average since 2009.

Based on data from the trade ministry, the country's total exports of furniture were valued at US$1.74 billion in 2013, dropped slightly from US$1.76 billion the previous year.

Exports of furniture to China alone were valued only at US$24.3 million or 1.4 percent of the total exports.

Meanwhile, the Indonesian Association of Furniture and handcraft makers (AMKRI) said the country's exports of furniture could rise to US$5 billion annually in the next five years.

ANTARA