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.

News Comment

Today's Industry

Oleg Mogilevsky - Product Marketing Manager at Check Point Software Technologies (Photo by Linkedin)

Selasa, 10 November 2020 - 11:00 WIB

Five Reasons to Reevaluate Your Endpoint Protection

With the new emerging threats caused by remote working standards, security professionals need to reevaluate their approach to protecting endpoints. In order to do so, it’s vital that organisations…

Darrell Adams, Head of Southeast Asia & Oceania, Universal Robots (Photo by LinkedIn)

Selasa, 10 November 2020 - 10:30 WIB

Collaborative Robots Open New Horizons in Quality Control Processes

Collaborative robots (cobots) offer suitable solutions to manufacturers. Hence, cobot-based quality control and inspection systems that can transition between different end products in very…

Ilustration Hackers (Photo by Microwire.info)

Jumat, 30 Oktober 2020 - 11:20 WIB

Organisations Paid Hackers US$23.5 Million for These 10 Vulnerabilities in One Year

HackerOne report reveals cross-site scripting, improper access control, and information disclosure top list of most common and impactful vulnerabilities.

Clean Earth Technologies (CET)

Jumat, 30 Oktober 2020 - 10:30 WIB

Clean Earth Technologies’ New Class Of Polymers Invented By Associate Professor, Justin Chalker, Receives Australian Pm’s New Innovator Award

Associate Professor Justin Chalker has invented a novel class of polymers synthesised directly from elemental sulphur which is a waste by-product of the petrochemical industry and renewable…

Adi Ikan - Network Research & Protection Group Manager, at Check Point Software Technologies (Photo by Linkedin)

Jumat, 30 Oktober 2020 - 10:05 WIB

Measuring the Global Impact of the NSA’s Top 25 Vulnerabilities Being Exploited In the Wild

NSA’s list of top vulnerabilities were used to launch 3 million attacks in 2020, with 2.5 million of those attacks occurring in the last 6 months.