Sales reduced to a crawl<\/p>\n
Eddy Soetriyono, Contributor, Jakarta<\/p>\n
Quiet and listless. That's the general prognosis of the
\ncurrent furniture industry in Indonesia as shown by the low
\nsales during several major exhibitions in Jakarta over the past
\nfew months.<\/p>\n
The same bleak atmosphere has enveloped one of the city's
\nelite furniture centers, the Jakarta Design Center. It has
\nrepeatedly placed large \"special sale\" banners promising huge 30
\npercent to 70 percent discounts, but they are still unable to
\ndraw enough customers.<\/p>\n
Although the center has never been packed with customers like
\nother malls, the current number of shoppers has dropped even
\nfurther than the precrisis period of 1997.<\/p>\n
\"Today we are no longer limping, but worse, we are crawling,\"
\nsaid one of the staff members at the Decorous shop.<\/p>\n
One look in newspapers, and you will see advertisements for
\nmajor clearance sales placed on the pages by both local producers
\nand importers in an effort to lure buyers. Several exclusive
\nItalian furniture products from Da Vinci, for example, have been
\nput up for sale at an enormous 70 percent discount.<\/p>\n
The lengthy economy crisis has continued to have repercussions
\non various businesses, including the furniture sector.<\/p>\n
\"It's more than quiet, it's almost lifeless,\" muttered
\nJunaedhi Anggabrata, the owner of PT Kesathi Andara, a local
\nfurniture manufacturer.<\/p>\n
Before 1997, his firm regularly received orders from various
\nhotels and restaurants in Jakarta and Bali. However, demand
\ndrastically dropped after the monetary crisis hit.<\/p>\n
Another manufacturer badly hit by the prolonged crisis was PT
\nProfil Kencana.<\/p>\n
In the good days, it was one of the major suppliers for star-
\nrated hotels in big cities across the country. Their products
\nfurnished the Grand Hyatt, Borobudur, Aryaduta, Le Meridien and
\nShangri-La in Jakarta; Preanger, Hyatt and Chedi in Bandung;
\nWestin and Shangri-La in Surabaya; and Nikko and Bali
\nIntercontinental in Bali.<\/p>\n
But the monetary crisis has made the construction of new
\nhotels a rarity. Existing hotels have even extended their
\ninterior \"rejuvenation\" cycle, from the normal renovation period
\nof every five years to 10 years or more.<\/p>\n
Amid the unfavorable situation, some companies have somehow
\nmanaged to survive by focusing on new and specific markets,
\nincluding catering to the tastes of foreign buyers.<\/p>\n
Junaedhi, for instance, has frequently exhibited his chairs --
\nmostly of teakwood and mahogany -- in several countries overseas.<\/p>\n
The result has been amazing with an overwhelming list of
\nforeign orders. In addition, the rupiah's value at that time had
\nextremely depreciated. Junaedhi told of how they were on the
\nverge of not being able to fill all the shipment orders.<\/p>\n
Currently, about 70 percent of his firm's products are for
\nexport, while the remaining are destined for the domestic market,
\nwhich is almost entirely designed for residences of high-ranking
\nofficials, Junaedhi explained.<\/p>\n
Indonesia, according to many, is home to two types of
\nfurniture manufacturers.<\/p>\n
The first concentrates on mass production of a limited number
\nof models, while the second specializes in small quantities -- a
\nmaximum of two to three pieces -- of certain models. Helped by
\nthe designers, the latter type of manufacturer accepts orders for
\ntailor-made furniture to match the customers' requirements and
\ntaste.<\/p>\n
Prices certainly vary depending on items ordered. A large size
\nteakwood bed sports a price tag of at least Rp 10 million, while
\na living room set costs Rp 12 million.<\/p>\n
Junaedhi said an owner of a luxury residence needs a budget of
\nbetween Rp 100 million and Rp 200 million for its furniture
\nalone.<\/p>\n
While some local producers are focusing their business on
\nexports, manufacturers from several countries, like Italy, China
\nand the United States, are going the opposite route.<\/p>\n
In major cities like Jakarta, Surabaya, and Bandung, one can
\nsee well-to-do Indonesians purchasing imported brands, both in
\nclassical and modern designs, at local distributor outlets.<\/p>\n
Besides being frequently put on display at first-class
\nexhibitions here, these imported products are easy to find at
\nmajor shopping centers in Jakarta, such as Plaza Senayan and Ratu
\nPlaza.<\/p>\n
The price? A classic modern Barcelona chair from the States
\ncreated by the late Bauhaus architect, Ludwig Mies van der Rohe
\n(1886-1969), carries a price tag of US$1,320. That's already with
\na 40 percent discount.<\/p>\n
A replica of a pair of leather chairs with chrome-plated steel
\nbars created by Le Corbusier (1887-1965), a world renowned
\ndesigner, made by Cassina, Italy, costs $6,000. A single piece
\ngoes for $3,750. At the time this article was written, the outlet
\nat the Jakarta Design Center was offering a 25 percent discount.<\/p>\n
Similar models manufactured in America were put on offer at
\n$2,050 (for a pair) and $1,250 for one piece.<\/p>\n
Solichin Gunawan, the president director of Atelier Interior,
\nsaid the difference in price was understandable, because Italy is
\nwidely acknowledged for its superior quality, which is probably
\ndue to the country's long history and rich tradition in the
\nfurniture industry.<\/p>\n
\"Their craftsmen are not only good at imitating, but at the
\nsame time they are able to improve any defects,\" said Solichin.<\/p>\n
Other famous Italian brands, such as B&B and Matteograssi, are
\nalready on the market here. Their prices are on the high side,
\ncharging about Rp 7 million for one chair. A leather dining chair
\ncosts about Rp 19 million, so for the total set of six or eight
\nchairs one would have to spend over Rp 100 million.<\/p>\n
For those who love furniture with transparent glass features,
\ncreations from Viam are available at Rp 40 million for the table
\nand Rp 50 million for the chairs. The decorative aspect of these
\nchairs -- which are able to withstand up to 200 kilograms of
\npressure -- comes out stronger.<\/p>\n
But one observer, who wishes to remain anonymous, warned
\nconsumers to be cautious and not be easily dazzled by an imported
\nlabel.<\/p>\n
He said that a well-known importer of Italian products often
\nbrought in items that were difficult to sell in its country of
\norigin. But with a clever promotion, these \"underground\" pieces
\nsold like hot cakes at exorbitant prices in Jakarta.<\/p>\n
But what about the furniture created by our own designers?<\/p>\n
\"Design hasn't developed very well in our country. Maybe it's
\nbecause we actually don't have the tradition of really sitting on
\na chair,\" Solichin said.<\/p>\n
He said that the country's craftsmen were only good at
\nduplicating. He referred to local producers in Jepara, Central
\nJava, which is home to skilled craftsmen.<\/p>\n
When astute foreign businessmen came with samples of their own
\ndesigns to be produced by craftsmen in Jepara, the products were
\nsuperior in both touch and style.<\/p>\n
But now, after the foreigners' departure, the locals are back
\nto their former craft, and are unable to come up with new
\ndesigns.<\/p>\n
Moreover, local products are notorious for offering illogical
\nprices to customers seeking classical furniture.<\/p>\n
Solichin recalled an experience he had during the first year
\nof the monetary crisis, when he needed a replica of a Louis XIV
\nchair. A local manufacturer set the price at Rp 3.5 million,
\nwhile an importer from Milan, Italy, quoted only Rp 900,000.<\/p>",
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