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)