Furniture exports expected to decline

Furniture exports expected to decline

JAKARTA (JP): Furniture exports to several Asian countries are
expected to start declining in coming months.

Tjipto Wignjoprajitno, the acting chairman of the Association
of Furniture and Handcraft Producers, said yesterday the region's
monetary crisis would force Asian importers to reduce their
purchases.

He said Indonesian furniture should be more competitive in
overseas markets with the rupiah's sharp decrease in value
against the U.S. dollar.

But currency depreciations in many Asian countries, including
South Korea, Singapore and even Japan, had weakened importers'
ability to buy Indonesian products.

Indonesian furniture exports likely would decline despite
lower prices, he told The Jakarta Post following the opening of a
furniture exhibition.

Indonesia exports 30 percent of its furniture products to
Asian countries, mostly to Japan and Korea. The other 70 percent
are shipped to the United States, Germany, the Netherlands and
Britain.

The country's total furniture exports increased to US$946.5
million last year from $858.1 million in 1995.

It is expected to reach over $1 billion this year.

Indonesia's furniture exports to South Korea rose to $30.46
million last year from $28.23 million in 1995, while to Japan
exports increased to $275.85 million from $274.01 million.

But Tjipto declined to give details about total exports for
this year's first nine months.

Minister of Forestry Djamaludin Suryohadikusumo who officially
opened the exhibition said the furniture industry would have
adequate raw materials this year.

But he said furniture manufacturers had to diversify their raw
materials to reduce their dependence on supplies from natural
forests.

"Furniture manufactures should develop other superior local
wood which has a high economic value," he said. Rattan and bamboo
had great potential, he added.

Rattan furniture exports were worth over $360 million last
year, he said.

Indonesia exports about 32 percent of its rattan furniture to
Japan. Last year, the volume of rattan furniture exports to the
country reached over 100,000 units, about 0.7 percent of the
market.

The furniture exhibition, called Furnifair 98, Indonesia's
23rd Furniture Exhibition, was held by the association in
cooperation with PT Mediatama Binakreasi.

The exhibition, which would take place in the Jakarta
Convention Center from Dec. 5 to Dec. 14, was designed to promote
furniture products, primarily for the Christmas, New Year and
Idul Fitri season.

The exhibition was expected to book about $10 million in
transactions.

At least 95 companies would take part in the exhibition, which
was expected to attract 1,700 visitors. (gis)