Trade restriction threatens ramin furniture producers<\/p>\n
JAKARTA (JP): At least 40 furniture companies might have to
\nclose their operations following the government's recent decision
\nto curb the sales of ramin (Gonystylus spp) wood in the country.<\/p>\n
The Association of Indonesian Furniture and Handicraft
\nProducers said here on Friday that the restriction would cause a
\na serious shortage in the supply of ramin, the main material used
\nin the association's production of furniture.<\/p>\n
\"The restriction is really damaging the furniture industry, we
\nmight see some closures soon,\" the association executive director
\nSae Tanangga was quoted by Bisnis Indonesia daily as saying.<\/p>\n
The government issued a decree on April 11 to ban exports of
\nramin wood and logs in an effort to curb illegal logging
\nactivities, which causes some Rp 6 billion (US$535,000) in losses
\nto the state every month.<\/p>\n
The sale of ramin in the domestic market is allowed but with a
\nstrict licensing procedure.<\/p>\n
He said furniture companies could import ramin, such as those
\nin Malaysia, Singapore, Taiwan and Hong Kong, but importing the
\nwood for furniture production would be too expensive.<\/p>\n
Ramin is one of the most popular types of wood in foreign
\nmarkets due to its good quality. Logs can fetch US$1,000 a cubic
\nmeter. Furniture made from ramin is sold at between $2,500 and
\n$3,500 a cubic meter.<\/p>\n
Sae said about 90 percent of the furniture made from ramin was
\nexported.<\/p>\n
Indonesia's exports of furniture made from ramin reached about
\n$350 million last year, which is about 20 percent of the
\ncountry's total furniture exports.(05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/trade-restriction-threatens-ramin-furniture-producers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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