Government to Issue Rule Limiting Exports of Raw Rattan
Responding to protests of furniture and handicraft makers over a lack in supply, the government will soon issue a new regulation limiting rattan producers - except for in the two largest centers in the country - from exporting the commodity, Ardiansyah Parman, the Trade Ministry secretary general, said on Wednesday.
“After a series of meetings between government and industry associations, we have revised the existing rattan export regulation and will issue a new one next week,” Ardiansyah said after a meeting at the Industry Ministry.
The move, which was welcomed by the local furniture makers association, was criticized as discriminatory by rattan producers.
Under the revised rattan export regulation, producers of the raw material from Kalimantan and Sulawesi, the two main producing areas, are required to supply 70 percent of their production to the local market, with the remaining 30 percent for export. Producers from outside these areas would be prohibited from exporting raw rattan, Ardiansyah said, because they have lower production volumes.
In addition, all high-quality small diameter rattan, between 4 millimeters and 16 millimeters in width, would not be allowed to be exported. Only larger canes would be sent overseas. There are no diameter rules for supplying the domestic market.
Rattan, the name of a vine which grows in tropical forests, is woven to produce furniture and handicrafts.
Indonesia is the biggest rattan exporter worldwide, with as much as 80 percent of global market share estimated at about $200 million annually.
Ambar Tjahyono, chairman of the Indonesian Furniture, Industry and Handicrafts Association (Asmindo), said he welcomed the new regulation.
“It will automatically improve our furniture and craft industry if it is implemented straight away,” Ambar said, adding that there should be proper marketing to ensure that producers follow the regulation and consumers were aware of the importance of buying Indonesian-made rattan.
However, Ambar expressed concern that the restrictions in the revised regulation could be detrimental to areas outside Sulawesi and Kalimantan.
Siti Nurmakesih, the deputy district head of the rattan-producing Kendal district in Central Java, called the new regulation a form of “discrimination.”
“The central government should focus on the national interest and not favor certain regions only,” Siti said. “I call this discrimination and is against our democratic principles.”
Rattan producers have been exporting their product overseas despite lower prices in the international market because overseas buyers prefer buying in bulk, especially furniture makers in China. This has led to shortages for the domestic industry at home and caused prices in local markets to rise.
In early 1990 under then President Suharto, the government limited rattan exports to semi-finished and finished products, reserving raw materials for domestic factories.
But in 1998, the government opened the export gates in an effort to aid raw rattan producers during the Asian financial crisis. Raw rattan producers then preferred to export their rattan rather than supply it to local industry, prompting an outcry from local rattan furniture makers.
“After a series of meetings between government and industry associations, we have revised the existing rattan export regulation and will issue a new one next week,” Ardiansyah said after a meeting at the Industry Ministry.
The move, which was welcomed by the local furniture makers association, was criticized as discriminatory by rattan producers.
Under the revised rattan export regulation, producers of the raw material from Kalimantan and Sulawesi, the two main producing areas, are required to supply 70 percent of their production to the local market, with the remaining 30 percent for export. Producers from outside these areas would be prohibited from exporting raw rattan, Ardiansyah said, because they have lower production volumes.
In addition, all high-quality small diameter rattan, between 4 millimeters and 16 millimeters in width, would not be allowed to be exported. Only larger canes would be sent overseas. There are no diameter rules for supplying the domestic market.
Rattan, the name of a vine which grows in tropical forests, is woven to produce furniture and handicrafts.
Indonesia is the biggest rattan exporter worldwide, with as much as 80 percent of global market share estimated at about $200 million annually.
Ambar Tjahyono, chairman of the Indonesian Furniture, Industry and Handicrafts Association (Asmindo), said he welcomed the new regulation.
“It will automatically improve our furniture and craft industry if it is implemented straight away,” Ambar said, adding that there should be proper marketing to ensure that producers follow the regulation and consumers were aware of the importance of buying Indonesian-made rattan.
However, Ambar expressed concern that the restrictions in the revised regulation could be detrimental to areas outside Sulawesi and Kalimantan.
Siti Nurmakesih, the deputy district head of the rattan-producing Kendal district in Central Java, called the new regulation a form of “discrimination.”
“The central government should focus on the national interest and not favor certain regions only,” Siti said. “I call this discrimination and is against our democratic principles.”
Rattan producers have been exporting their product overseas despite lower prices in the international market because overseas buyers prefer buying in bulk, especially furniture makers in China. This has led to shortages for the domestic industry at home and caused prices in local markets to rise.
In early 1990 under then President Suharto, the government limited rattan exports to semi-finished and finished products, reserving raw materials for domestic factories.
But in 1998, the government opened the export gates in an effort to aid raw rattan producers during the Asian financial crisis. Raw rattan producers then preferred to export their rattan rather than supply it to local industry, prompting an outcry from local rattan furniture makers.