Furniture exports to earn $1.8b this year

JAKARTA (JP): Indonesia's export earnings from furniture are expected to increase by about 20 percent this year to US$1.8 billion from $1.5 billion despite the economic slowdown in major buyer countries, according to the National Agency for Export Development (BPEN).

Gusmardi Bustami, head of BPEN, said here on Thursday that orders from European buyers would remain strong despite the gloomy outlook in their economies.

He acknowledged that the slowdown in the American economy would affect furniture exports to that country.

"But overall demand will remain healthy because the shortfall in the U.S demand could be offset by higher orders from other buyers," he told reporters.

According to the latest data from the Central Bureau of Statistics (BPS), some European countries -- such as the Netherlands, Germany, England, Belgium -- contributed 40 percent or $473 million to the country's total furniture exports of $1.2 million during the first 10 months of last year.

Furniture exports to the U.S. reached $361.1 million in value during the same period, or about 30 percent of the country's total furniture exports.

Japan imported Indonesian furniture worth $151 million during the 10 months, about 12.6 percent of total furniture exports. Other main buyers of Indonesian furniture include Singapore and Middle East countries.

He said that BPEN would take part in 46 international expositions this year to promote the country's furniture, far more than the 26 international events participated in last year.

"We're optimistic that exporters will achieve the target," he said after briefing reporters at the opening of a furniture and handicraft exposition at the Jakarta Fairground in Kemayoran on Friday.

Yos S. Theosabrata, chairman of the Indonesian Furniture Club, told The Jakarta Post that at least 1,500 overseas visitors had confirmed participation in the exposition, which runs until March 6.

The presence of overseas buyers at the exposition indicates that foreign interest in Indonesia's furniture remains strong despite the expected slowdown in the global economy.

Yos, who is also involved in organizing the expo, voiced hope that transactions would reach $30 million during the five-day exhibition, more than the $21 million during a similar expo held last year.

He said foreign visitors would be facilitated with free hotel accommodation during their visit here. The organizer will also provide free Singapore-Jakarta-Singapore air tickets to the foreign visitors because most of them will also attend the Singapore Furniture Expo on March 1 to March 5.

A seminar on the prospects of export and the improvement of furniture quality, along with a furniture design competition, will also be held during the expo, in which about 300 handicraft and furniture producers from Jakarta and other cities are taking part. (05)