Furniture and Wood Industry Expect Capital Injections From Government

By : Ridwan And Aldi Firhand. A | Thursday, September 28 2017 - 22:38 IWST

National Furniture Industry
National Furniture Industry

INDUSTRY.co.id -Jakarta, The entry of foreign companies and their investors in the wood and furniture industry hit the furniture business entrepreneurs in Indonesia. If this condition continues to be silenced, the competitiveness of national industries will be destroyed.


Chairman of the DPD Jabodetabek, Ade Firmen said, the entry of foreign investment into Indonesia is not making local industry advanced, but will get worse.

"The reason, They (foreign investors) come to Indonesia do not want to join us, they also participate for their own business in Indonesia," said Sobur to INDUSTRY.co.id in Jakarta (28/09/2017).

He added that this condition has been running two years later, although not mentioning the income figure but overall in Indonesia there was a decrease reached 50 percent. "In some areas have occurred, big furniture entrepreneurs that once was successful, now Become hard again," he explained.

According to Ade, woodcraft and furniture business dominated by SMEs, lately the number has decreased. Many business actors out of business because they can not survive. "There are thousands of business actors, from 2000 about 300 are closed bankrupt," said Ade.

This condition is exacerbated when the domestic market actually prefers the products of foreign companies. He admitted, most people, especially younger generation tend to choose products made by foreign companies, especially China due to price factors.

Furthermore, Ade revealed, big companies dare to do massive promotions and discounts because driven by strong capital. So that foreign companies are able to buy sophisticated equipment to create beautiful design products. This is difficult for local companies to do.

"We lost the capital so lost the promotion, lost the design and lost the price," he said.

Considering that investors are reluctant to invest their capital for local wood and furniture industries, Ade continued, the only hope is that the government needs to provide capital assistance for domestic companies, especially SMEs to buy modern machines to create products that are not less beautiful at competitive prices.

"We need capital assistance to buy modern machines and training programs so that the results are also in accordance with market interest because of our excellence today only unique designs," he added.

Ade hopes for the full support of the government for the national furniture and wood industry is not really damned. "The full support of the government helps the local industry to remain strong and competitive," he said.

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