Furniture Makers Want Cash, Not Tax Cuts
A leader of Indonesia’s furniture and craft industry, one of the world’s biggest, complained on Wednesday that the government’s plan to provide the industry with tax incentives would not be effective, saying instead that most of the companies involved needed direct cash infusions if they were to survive.
Some 50,000 workers have already been laid off, said Ambar Tjahyono, the chairman of the Indonesian Furniture Producers Association, or Asmindo, warning that many more will follow if immediate action is not taken.
“A number of the association members are dealing with [corporate] interest rates that have risen from the normal 11 to 12 percent to 16 to 17 percent,” Ambar said at a news conference ahead of the upcoming International Furniture and Craft Fair, to be held in Jakarta on March 11-15. Local companies are hopeful of securing as much as $300 million in business from trade representatives from 74 countries during the event.
The association hopes that some 200 contractors and buyers will attend the fair despite the worldwide economic downturn, although Ambar said he would not be surprised if the exhibition missed the target. Nevertheless, he said the target was “realistic considering that we are dealing with a global crisis. As long as we’re not down too much on last year.”
The fair is the second international furniture and craft exhibition to be held by Asmindo.
“Hopefully the government will support us by facilitating the foreign delegations in visiting Indonesia, and by providing them with suitable accommodation during their visits here,” Ambar said.
He added that the industry was hoping the government would roll out the stimulus fund proposed for the furniture industry prior to the exhibition.
“It would help us a lot to boost sales as the stimulus money could be used to reduce the prices of our products,” Ambar said.
Ambar also said he was disappointed that the government had yet to prioritize assistance for the industry, which he said employed a total of 11 million workers.
Some 50,000 workers have already been laid off, said Ambar Tjahyono, the chairman of the Indonesian Furniture Producers Association, or Asmindo, warning that many more will follow if immediate action is not taken.
“A number of the association members are dealing with [corporate] interest rates that have risen from the normal 11 to 12 percent to 16 to 17 percent,” Ambar said at a news conference ahead of the upcoming International Furniture and Craft Fair, to be held in Jakarta on March 11-15. Local companies are hopeful of securing as much as $300 million in business from trade representatives from 74 countries during the event.
The association hopes that some 200 contractors and buyers will attend the fair despite the worldwide economic downturn, although Ambar said he would not be surprised if the exhibition missed the target. Nevertheless, he said the target was “realistic considering that we are dealing with a global crisis. As long as we’re not down too much on last year.”
The fair is the second international furniture and craft exhibition to be held by Asmindo.
“Hopefully the government will support us by facilitating the foreign delegations in visiting Indonesia, and by providing them with suitable accommodation during their visits here,” Ambar said.
He added that the industry was hoping the government would roll out the stimulus fund proposed for the furniture industry prior to the exhibition.
“It would help us a lot to boost sales as the stimulus money could be used to reduce the prices of our products,” Ambar said.
Ambar also said he was disappointed that the government had yet to prioritize assistance for the industry, which he said employed a total of 11 million workers.