The Thriving Indonesia Furniture Exporter should Keep Alert
A wide range of unique products, beginning from natural products such as rattan to the more sophisticated synthetic furniture, and confidence from retailers at the main European and U.S. markets, makes typical indonesia furniture exporter maintained its stand for months when the 1997 Asian ordeal broke. However, the waves were too big even for the government and eventually brought down any export-centered enterprises. Recovered rather slowly after the end of New Order, the next five years then on witnessed furniture export rose rather fast, which continues until now.
The markets worldwide now sees that even an average indonesia furniture exporter has a capability to export its products to the huge European and U.S. markets, as well as the larger and larger Asian markets such as Hong Kong and most of Central Asia. There are many factors positive to the pleasing growth: relaxed export taxes, tougher corruption eradications, the better index in the World Bank list of developing countries, as well as the government's almost unlimited support for most of export industries as a strategy to deal with the country's reduced capacity to export oils and gasses. If the trend were to last for at least five years to come, the industry will be experiencing a boom trend. This is the most pleasant expectation. However, there is not any solid guarantee that the positive growth will be maintained easy enough, especially in 2014 where the general election will be conducted. Political flux in furniture centers also needs considering. The relatively boiling atmosphere in the district level elections should be anticipated in the furniture centers such as Jepara and Bali. Concern also needed in the materials supplier district such as districts in East Kalimantan. What needs considering in regard to this political factor is the supply line. The flood in Queensland yields a lesson that once the centers were disturbed and the lines broken, total collapse is to be expected. In Indonesian context, public rallies and anarchistic behaviors are to be monitored closely.
For at least five next years to come, every indonesia furniture exporter still has to keep alert for any obstacle. However, it will also be wise to exploit the present profitable situation. This means the higher standard in quality products, better communication with the foreign and domestic retailers, and continuous support by the government in the form of easy credits, training and tax reduction as well as better customer service.
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- Why Wicker Furniture Hits the Weak Spot of Homeowners (October 06, 2008)