Association; Domestic Furniture Industry has Promising Prospects

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    TEMPO.CO, Jakarta - The Chief of Furniture and Handicrafts Industry Association (Asmindo) Taufik Gani is optimistic that the value of furniture exports in 2015 can reach up to US$ 5 billion. He hoped that the new government can eradicate the export of illegal raw materials such as logs.

    In September 2014, furniture exports had reached a total value of US$1.9 billion. Until the end of the year, Taufik is certain that the number could reach US$2 billion. He explained that the export value in 2014 only account for one percent of the global furniture market, which is currently US$440 billion. "Next year, we will fill three percent of the global market," said Taufik yesterday.

    Furniture businesses players are optimistic that president-elect Joko Widodo can increase the value of furniture exports. "Mr. Joko Widodo is a furniture businessman, so he knows which areas must be secured to ensure there are no more illegal export of raw materials," said Taufik.

    Once illegal export of logs has been eradicated, foreign countries will experience a shortage of furniture materials. "They will be forced to enter Indonesia and invest in the industry where the production is certain to be done domestically," he said.

    Edi Putra Irawady, Deputy of Business and Trade Division for the Coordinating Ministry of Economic Affairs, said that there are a few issues that hinder the national furniture industry. "In the global market, our furniture is targeted by rivals with issues of deforestation and use of hazardous materials," he said. The issues are meant to destroy Indonesia’s furniture export market, particularly to the United States.