Furniture Industry Potential to Become Indonesia Export Market Leader

INDUSTRY.co.id - Yogyakarta, Indonesia Small and Medium Industries (IKM) which produce furniture and handicrafts have the potential to be developed into a market leader in exports.

The Ministry of Industry has established the furniture and handicraft industry as one of the priority sectors because it is able to produce high added value.

"In order to boost the value of sales and exports, it is also necessary to increase the promotion aspect in order to introduce wider national furniture and handicraft products to the global and dosmetic consumers," said Secretary General of the Ministry of Industry Haris Munandar in Yogyakarta, over the weekend.

Based on The Ministry of Industry records, there are 140 thousand business units engaged in the furniture industry sector with the total employment of 436 thousand people and the value of investment reached Rp5, 8 trillion by 2015. Currently, Indonesia occupies the fifth position as a country exporter of furniture products .

"Meanwhile, for the handicraft industry, we have up to 1.32 million workers who are absorbed by about 696 thousand business units," said Haris.

Referring to Central Bureau of Statistics (BPS) data, until November of 2017, the export value of national furniture products reached USD1, 25 billion. Meanwhile, the export value of handicraft products in 2017 was at USD776 million, up 3.8 percent compared to the year 2016 about USD747 million.

"All of these potentials must be supported by promotion programs as well as domestic and global market penetration efforts in an integrated and continuous manner both online and offline," continued Haris.

To improve online promotion, The Ministry of Industry has launched e-SmartIKM program in synergy with some marketplaced in the country. Until 2017, the implementation of e-SmartIKM program through workshop activities has been attended by 1730 SME actors, and targeted in 2019 can reach 10 thousand IKM that can be accessed by consumers through marketplace.

"Offline marketing also can not be underestimated because one of the advantages that can not be replaced is the buyer can see firsthand the type and quality of products .Moreover, buyers can also meet directly with the perpetrators of IKM so that the negotiation process easier to do," he explained.

In 2018, the Directorate General of IKM participated in the JIFFINA exhibition by occupying 336 m2 of land to invite three communities or cooperatives in the center of IKM furniture and crafts in the country, namely Community Furniture Industries and Crafts Solo Raya (KIMKAS) with eight IKM as exhibitors .

Furthermore, Koperasi Jepara (KIDJAR) Industry Cooperative and Handicraft Industry (KIDJAR) carries four SMEs, as well as Mataram Community (MAKAREMA) Yogyakarta carrying seven IKM.

"This group-based development will be a platform for furniture and craft industry actors to exchange information on raw materials, design, technology, markets and government policies," he explained.

Haris added that participating in JIFFINA 2018 event is one of the concrete steps of IKM Directorate General to promote IKM furniture and handicraft products in Indonesia especially Java-Bali region by bringing the concept of 3N in 1, namely New Product, New Design and New Market.

In fact, in an effort to protect the creativity of Indonesian IKM craftsmen, IKM Directorate General facilitates the registration of Intellectual Property Rights (HKI) for new designs of furniture and handicraft products, especially for SMEs that will participate in various exhibitions to prevent plagiarism.

"In addition, the Directorate General of IKM also provides the facilitation of Timber Legality Verification Certification (SVLK) for IKM to encourage increased exports of forest industry products," he added.