Indonesian Furniture Industry

You need to know that the foreign buyers look again at the Indonesian furniture industry that has a comparative advantage in the form of wood and rattan raw material, following the synthetic raw material prices continue to rise due to soaring world crude oil prices. It is the potential Furniture Handicraft Wholesale Marketplace you see, there is a tendency among foreign buyers are now back to buy to Indonesia, since products from China and Vietnam is no longer cheap. According to the Chairman of the Association of Indonesian Furniture Industry and Handicraft said, in line with world crude oil price increases of raw materials such as rattan synthetic plastic-based also raised. In fact, China and Vietnam so far are superior to these synthetic materials that make their products cheaper price.

So far Indonesian furniture industry still has great prestige in world trade. We can make more Indonesia Furniture Handicraft Wholesale Marketplace there. In the event a solo exhibition titled “Indonesia Pavilion” which lasted for 18 to 22 March 2007 in Shenzhen – China, the furniture from Indonesia were in great demand by international buyers. There are about 50 to 70 buyers have asked Indonesian businessmen to become suppliers of furniture and Indonesia handicraft with a transaction value of approximately U.S. $ 100 million.

The government also has made efforts to develop the Furniture Handicraft Wholesale Marketplace. Moreover, this sector has been set by the government as one of 10 leading commodity export country. This is supported by both design and quality aspects of products demanded by consumers overseas, the availability of raw materials and skilled human resources.

Similarly, in terms of national market share, the local furniture industry still holds 70% of the domestic furniture market. But market share is threatened by imports of furniture from China, whose growth reached 200% per annum in the past year. Increased imports of furniture from China, which occurs every year mainly for cheap furniture segment, for lower middle Furniture Handicraft Wholesale Marketplace.

Regulation of export taxes by taking samples of goods furniture industry is a bit disturbing the Furniture Handicraft Wholesale Marketplace. Section, the tax for this case is very large and includes tax on luxury goods group. When goods samples retrieved from overseas will be taxed luxury goods, which is between 50-70 percent. It’s very expensive. So that some new policies will be issued by the government should refer to the banking system.

Image source: outofindonesia.com.

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