Ministry of Industry: Furniture and Handicraft Industry Has Strategic Value In Indonesia's Economy

By : Ridwan And Aldi Firhand. A | Thursday, September 07 2017 - 22:08 IWST

Direktur Jenderal Industri Kecil dan Menengah (IKM) Kementerian Perindustrian, Gati Wibawaningsih
Direktur Jenderal Industri Kecil dan Menengah (IKM) Kementerian Perindustrian, Gati Wibawaningsih

INDUSTRY.co.id - Jakarta, the Ministry of Industry of the Republic of Indonesia said that the domestic furniture industry sector contributes significantly to the national economy.

"Furniture and craft industry besides having strategic value economically also contribute politically to Indonesia economy, furniture export in 2016 amounted to 1.04 billion US dollars," said Director General of Small and Medium Industry (IKM) Ministry of Industry Gati Wibawaningsih through his written statement in Jakarta (7/9/2017).

Based on data available at the Ministry of Industry, by 2015 there are 21,643 small and medium industrial enterprises with a total workforce of 436,764 people and an estimated investment value of Rp5, 8 trillion.

Based on data from the Association of Indonesian Furniture and Handicraft Industries (Himki), the number of SMEs in solo raya reached 119 IKM and employed 2,000 workers with export value in the first quarter of 2017, the January-March period is estimated at 7.32 million US dollars .

"With this condition it can be concluded that the furniture industry in Solo is a labor-intensive industry that provides significant jobs and foreign exchange for the Republic of Indonesia," she said.

Therefore, in order to strengthen the industrial sector, the Ministry of Industry has six priority policies of the national industry, namely strengthening human resources through strengthening industrial vocations, deepening industrial structure through strengthening the industry value chain, labor-intensive industry and export orientation, developing IKM with digital platform through e -smart IKM, the development of natural resource-based industries and the development of industrial zoning.

"The programs are conducted in order to increase competitiveness and increase productivity, growth of industrial population and development of industrial zoning outside Java," said Gati.

For the national furniture industry sector, continued Gati, the Ministry of Industry through the Directorate General of IKM seeks to improve the quality of products and human resources of IKM furniture continues to be done on an ongoing basis.

"In the last five years, the development of new small-scale entrepreneurs is done in 15 locations and 19 central locations, while 17 furniture manufacturers have received restructuring assistance in the form of price cut and UPT optimization is continuously done to strengthen integration in furniture industry," she explained.

According to Gati, technology and innovation are also needed to increase the creation and variation in furniture production in order to improve the competitiveness of Indonesian exports. "In this case, the Directorate General of IKM also supports the promotion and marketing of IKM furniture products," he added.

In the last five years, the Ministry of Industry has facilitated a number of 32 IKM to participate in overseas exhibitions and 39 IKM to participate in domestic exhibitions. "The goal is to boost export value and enhance buyers' opportunities and consumers conduct business meetings directly," said Gati.

Previously, the Government was determined to spur the development of national furniture and handicraft industries through strengthening coordination across ministries and agencies. Synergistic steps taken, among others, to ensure the availability of raw materials, provide incentives to increase exports and encourage investment in forest-based sectors.

News Comment

Today's Industry

Citibank

Minggu, 18 April 2021 - 22:10 WIB

Citi Indonesia Reiterates Commitment to Customers During Sale Process of The Consumer Bank Business

Citi today reaffirmed there would be no immediate change to how it serves its local consumer bank customers, as it commences the sale process of its Indonesian consumer business, following the…

Indonesia Port

Sabtu, 17 April 2021 - 06:05 WIB

Indonesia's Export Value in March 2021 is Higher than February

Statistics Indonesia (BPS) released value of Indonesia's exports in March 2021 which reached US$18.35 billion, an increase of 20.31% compared to exports in February 2021, as well as compared…

Minister of Manpower Ida Fauziyah

Sabtu, 17 April 2021 - 05:10 WIB

Manpower Minister Urges BPJS Kesehatan to Speed Up Integration of JKP Beneficiaries’ Data

Minister of Manpower Ida Fauziyah has urged the Health Care and Social Security Agency (BPJS Health) to accelerate the integration of membership data for the social security program of laid-off…

Satgas COVID-19

Sabtu, 17 April 2021 - 04:19 WIB

COVID-19 Task Force Asks Regional Governments to Firmly Enforce Regulations on Eid Homecoming

The COVID-19 Handling Task Force through its spokesperson Wiku Adisasmito reminded regional governments to enforce the rules set by the Government in the Circular of Head of the COVID-19 Handling…

Minister of Villages, Development of Disadvantaged Regions and Transmigration Abdul Halim Iskandar

Sabtu, 17 April 2021 - 03:12 WIB

Gov’t Has Disbursed Village Funds to 34,053 Villages: Minister

The Government has disbursed Rp 11.361 trillion of Village Fund as of 12 April 2021, according to Minister of Villages, Development of Disadvantaged Regions and Transmigration Abdul Halim Iskandar.