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Indonesian Gov”t Targets $2 Billion from Furniture and Handicraft Exports in 2018

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JAKARTA, NNC – The Indonesian government has targeted the export of furniture and handicraft products to reach US $2 billion this year. Indonesian exports will target traditional markets in America, Europe, and China, as well as non-traditional markets such as Africa, the Middle East, and Eastern Europe.

I Wayan Dipta, Deputy of Production and Marketing at the Indonesia Ministry of Cooperatives and SME (Small and Medium Enterprises), said the handicraft and furniture industry is a labor-intensive sector which can create about 500,000 jobs per investment of US $1 billion.

“This sector does not only provide added value, but also creates multiplier effect for the Indonesian economy,” Wayan said at the opening of the 2018 Indonesia International Furniture Expo (IFEX) exhibition at JIExpo arena, Kemayoran, Jakarta, on Friday (03/09).

In the framework of promotional programs and market expansion of Indonesian SME export potential products, The Ministry of Cooperatives and SME has facilitated Indonesian SMEs at the IFEX 2018 exhibition on March 9-12, 2018.

The exhibition for the category of furniture and home décor is the largest in Southeast Asia. IFEX is the 5th time this exhibition had showcased more than 500 exhibitors from home décor and furniture product categories across Indonesia.

IFEX 2018 was officially opened on March 9, 2018, attended by Triawan Munaf as Head of Creative Economic Agency (Bekraf), as well as representatives from the Ministry of Trade, Ministry of Industry, and Ministry of Cooperatives and SME.

In this exhibition, The Ministry of Cooperatives and SME facilitated 15 SMEs from Jakarta, Bali, Yogyakarta, Banten, Jabar, and Central Java. Transaction results obtained during the exhibition reached IDR4.8 billion, with retail sales of IDR1.3 billion and potential orders of IDR3.4 billion

“There has been an increase in the number of facilitated SMEs (from 11 SMEs to 15 SMEs), as well as transactions from the previous year (total transactions of 2017 stood at IDR1.9 billion, to IDR4.8 billion in 2018),” Wayan added.

The export potential countries that are covered by SMEs facilitated by the Ministry of Cooperatives and SME are from Saudi Arabia, Germany, Singapore, Australia, India, Pakistan, England, United States, Mexico, Japan, Spain, South Africa, South Korea, and Mongolia.

While the category of products of interest are wooden flooring, wooden handicraft, and handweaving bamboo basket.

Wayan continued that the productivity of Indonesian SMEs from the category of home décor and furniture in facing export challenges had been tested with significant contribution to the creation of jobs and foreign exchange (forex).

“Therefore, this sector should continue to be developed as one of the national economic pillars,” he said.

Meanwhile, Herustiati, Assistant Deputy for Marketing at the Ministry of Cooperatives and SME, said IFEX was one of the most significant annual events in the development of Indonesian SME marketing, especially in the furniture and home décor sector. Thus, the Ministry of Cooperatives and SME had chosen this event as one of the priorities in the annual promotion agenda.

The Ministry has various promotional agenda in the country for the category of international, national, and regional exhibition which provides opportunity for Indonesian SMEs to strengthen its existence in the domestic market, as well as reaching out to international buyers visiting Indonesia.

“The marketing of Indonesian SME products is of concern to the government because these aspects need to be encouraged, especially for SMEs to have broader marketing range,” Herustiati said.

“In line with the development of the era, inevitably Indonesian SMEs have to adapt to the dynamic global market demand and create continous innovations,” she added.

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