Indonesian furniture export slowing amid global crisis
Jumat, 21 September 2012 | 09:12
Value of furniture exports are projected to reach US$1.76 billion by the end of this year, or down 4.8% compared to the last year\'s realization of US$1.85 billion.Chairman of the Association of Indonesian Furniture Industry and Handicraft (Asmindo) Ambar Tjahyono said since the beginning of this year, the industry sector was actually optimistic that exports can be similar with the last year's realization.
However, the global economic condition that affects the target has made the Indonesian furniture producers to revise their target to only US$1.76 billion in 2012.
"The economic conditions in Europe and America have a big impact on Indonesian furniture export," he said on the sidelines of the post Eid-ul Fitr of Asmindo, Tuesday (9/4/2012).
Based on data of Asmindo, every year of wood-based furniture products gave the largest contribution of 70%, while the rest is contributed by the bamboo-based products, plastics, and more.
He said that export condition is slowing down which is not only experienced by furniture products, but also other products as the impact of the weakening global economy.
According to him, Asmindo predicts the exports to some countries will begin to recover in the next two years. "We expect export conditions to recover as soon as possible, but we expect to see the recovery next two years."
Ambar said Indonesia is expected to diversify export market following the condition of the collapse US economy and Europe.
Asian markets, as Ambar said, is considered as a potential market to be developed, such as China, Japan, South Korea, India, and other nations.(t03/msw)
by Hadijah Alaydrus, Herdiyan