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.