RI's furniture exports to increase 5%: BPEN

RI's furniture exports to increase 5%: BPEN

The Jakarta Post, Jakarta

The value of the country's furniture exports is expected to increase by five percent this year from US$1.4 billion last year due to the development of new products and new markets, according to National Agency for Export Development (BPEN) director Diah Maulida.

"We expect exports to increase as local producers develop new models and find new markets," she was quoted by Antara as saying.

Diah was speaking to reporters after signing a memorandum of understanding with the Philippines and Malaysia for joint marketing efforts for furniture products.

The main export markets for Indonesia's furniture products are the U.S., the European countries and Japan. These destinations account for at least 80 percent of the country's furniture exports.

However, as global competition intensifies, local producers have started to diversify their markets to include the Middle East, South America and African countries.

Indonesian furniture exports reached $1.2 billion in 1999 and $1.5 billion in 2000.

But they fell to $1.4 billion last year due the world economic slowdown, which was exacerbated by the Sept.11 terrorist attacks on the U.S.

There have, however, been strong signals that the U.S. economy will recover in the second half of this year.

Diah was optimistic that Indonesian furniture products could compete overseas, particularly as the country was able to draw on various ethnic designs and abundant raw materials.

Therefore, she said, furniture producers should be able to optimize the development of new designs to boost their exports.