Textiles and handicrafts form Bali's economic backbone

Textiles and handicrafts form Bali's economic backbone

By I Ketut Sutika

DENPASAR, Bali (ANTARA): The beauty of Balinese arts and
handicrafts has not only made the Island of the Gods famous
around the world but also one of the most prosperous of
Indonesia's provinces.

For centuries, Bali has been renowned for its elaborate and
fine artwork and home to many talented artists. Bali produces, to
name a few, woodcarving, stone sculptures, intricate textiles and
garments, rattan and bamboo weaving, terra-cotta, ceramics and
furniture.

Started from individual or home industries, handicrafts and
other art products have become the island's most profitable
businesses.

Small-scale industries and handicrafts have long become the
backbone of Bali's economy, contributing about 80 percent of the
island's annual export revenues.

These two sectors, along with agriculture and tourism, have
played significant roles in boosting the island's economic
growth, and provide job opportunities to the Balinese people.

Figures at the Ministry of Industry and Trade's office in Bali
presented good prospects.

Despite an economic crisis which badly hit the country's
export performance, Bali's textile and handicraft exports
increase, on average, 15 percent annually.

The province's total export revenue increased from US$325.25
million in l996 to $399.58 million in l998. For just the six-
month period from January to June l999, export revenues reached
$206.9 million.

Small-scale and home industries in Bali produce more than 20
kinds of export goods which help strengthen the province's
economic sector. Currently, Bali has 84,961 home industries,
which employ 298,705 workers.

Textiles and garments made up 45.21 percent of the province's
total exports, compared to wood products, which reached 22.09
percent, silver, 4.65 percent, and 28.07 percent from other
handicrafts.

Among the most popular garment products are embroidered and
bead dresses. Evi Suwandi, a garment producer from Bali, said her
business was flourishing.

"I have received a great number of orders in the last few
months," she said.

Textile and garment products generated $145.2 million in l994
and increased to $147.1 million in l995. In l996, this dropped to
$136.4 million but increased to $162.6 million in l997 and
dropped again to $152 million in l998. In the first semester of
l999, it brought in $93.5 million.

Wood products ranked second with $86.8 million and increased
to $99.4 million in l998. During the first semester of l999, wood
product exports yielded $45.7 million from the sales of wood
statues and handicrafts.

Bali's exports are shipped mostly to the United States (38
percent), European countries (37.32 percent), Japan (8.95
percent), Canada (2.63 percent) and other export destinations
(10.30 percent).

To produce various wood handicrafts, furniture and other
goods, Bali needs about 200,000 cubic meter of ebony, mahogany
teakwood and hardwood from the islands of Java, Sulawesi and
Kalimantan.

Silver work is ranked third in generating foreign exchange for
the island.

Currently, Bali has 824 industries working in silver which
absorb about 5,000 workers. Silver industries center mostly in
Celuk village, Gianyar regency.

Silver exports generated $24.6 million in l997 and increased
to $29 million last year.

In the first semester of 1999, silver products generated $9.5
million.

Despite its robust business, Bali's exports are expected to
face tough challenges soon in international markets.

Bali must fully prepare to face the coming free-trade era in
2002 for Association of Southeast Asian Nations (ASEAN) countries
and 2010 worldwide. The free and stiff competition in the trade
world will force Bali to improve the quality of its export
products.

Gde Ketut Mendra from the Ministry of Industry and Trade
office in Bali is convinced that the province has anticipated the
possible competition and has already made steps to create
export-oriented industries which are based on people's economy.

He said there was an interministerial effort to improve the
quality of Balinese wood handicrafts. In cooperation with the
Ministry of Forestry and Plantation concession holders'
companies, Balinese handicraft producers have agreed to apply
"ecolabeling" certification for woods used as material for
handicrafts and other products.

When the free trade is applied, producers are not allowed to
employ children.

But, in Bali, things are quite different. Many children work
for their own parents as a regeneration process of acquiring art
skills and workmanship.

"Such activities have been going on for centuries. It is a
kind of informal education system in the Balinese society," said
Gde Mendra.

He also said Bali must improve the quality of its wood
products, such as sculptures and carvings.

Many buyers have complained of many flaws in exported goods.

"Handicraft producers now realize that they have to make
quality products, otherwise nobody will be willing to purchase
them," he said.