Talents, creative designs not enaugh to compete in global craft market

Talents, creative designs not enaugh to compete in global craft market

Bali is blessed with skilled and creative artisans as well as potential markets. But, these are not enough to develop a sustainable, manageable and more importantly profitable handicraft industry.

Bali is just one case. Similar problems are also faced by handicraft industry across Indonesia.

In the past when Balinese unique crafts and Indonesian ethnic products were considered exotic stuffs for many foreigners, artisans felt they could create variety of products in accordance to their limited human resources, time space, and artistic ability.

The production process mostly was depended on the artists and small-scale local producers and the buyers would adhere to their time frames, standard of quality and quantity.

Yet, time has changed very fast and the need for handicraft is very high on the international market. As a country with hundreds of ethnic groups, each with its rich culture and tradition, Indonesia could stand high on the world handicraft stage. But, in reality, we hardly get the opportunity to widely introduce, to promote and to export our goods.

There must be something very wrong in our handicraft industry, developed since the early 19th century when the Dutch colonial administration began introducing local crafts as commodity.

Now in the 21st century, the landscape of world trade has shifted drastically. Handicrafts are now demanded not by retailers or collectors but by international wholesale buyers.

The market is huge but very demanding. The global competition is so keen since more and more countries have entered the market offering myriads of products.

Representatives of PT Prasidha Adhikirya, Surya Pernawa commented that only a few handicraft producers in Bali and other places in Indonesia could meet the global market requests.

"Historically, our handicraft industry was developed in a traditional agrarian social system. It was a family-business industry lacking in the ability to apply sophisticated management system, high-tech equipment and marketing strategy," he explained.

The government, which boosted handicrafts as potential non-oil export commodities, had tried to accelerate the industry since l975 when our oil resources was depleting due to mismanagement.

"Unluckily, the government failed to change the paradigm of the industry from home-based to modern manufacturing. The result was dismaying because the industry is now lacking in competitiveness, unprofitable and inefficient," he added.

Pernawa emphasized the importance of having an integrated handicraft industry system that will combine capacities in production, such as human resources, research and development, also bringing the business strategy and production system closer to the market.

"Another important issue in anticipating the global market is the will to change," he maintained.

I Gede Bagia Arta, director of PT Muveo Intersys focuses on change management because often business players tend to be satisfied with their achievement thus do not try to develop themselves.

"They could produce fine handicrafts but many of them fail to identify what the market really wants," he noted.

Noted craft designer and producer Warwick Purser from Out of Asia shared the opinion.

Many Indonesian producers do not have the capacity to conduct market research which could affect their export performance. "If too dependent with buyer request, producers may have difficulties in expanding market because they lack understanding on global market characteristics, demands and competitors."

Feraldi Loeis, IFC-PENSA's Manager for Handicraft Export Promotion said national handicraft industry grew in an almost stagnant state with only 2 percent annually as compared to 8.9 global handicraft growths.

"China is a dominating producer for certain. But India is now emerging as one of the biggest players in the world. Even Vietnam which was not even mentioned in the global trade a few years ago is beginning to surpass Indonesia and other Southeast Asian countries," Feraldi concerned.

India, for example, now employs more than five million artisans in carpets, gems, jewelry with a growth of 9 percent a year. Since l999, the country's handicraft industry has generated no less than US$1.7 billion.

Vietnam is another success story, he said. This country's handicraft export amazingly surged from only $121 million in 1997 to $305 million in 2000, and now Vietnam is expecting to reap $1 billion in revenue from its handicraft export.

IFC-PENSA, a World Bank Group, has been actively providing technical assistance, promotional activities and access to finance to Balinese handicraft producers since 2002.

This seminar meeting was mainly intended to increase the responsiveness of exporters and handicraft producers when facing competitive challenges.

"We have embarked on a program that focuses on developing knowledge and skills that are enriched with guidance and support by business development service providers," Feraldi explained.

"Such efforts will hopefully provide real changes in their businesses thus Indonesian handicrafts have increased value."

--Rita Widiadana