Times are changing for Yogya's craftsmen

Asip A. Hasani, The Jakarta Post, Yogyakarta

After spending more than 10 years of his time as a craftsman, Munandar is still running the same business, selling various wooden souvenir items from his modest showroom in a small rented house in Kampong Nagan, Yogyakarta.

However, he might not be able to keep his showroom any more.

"I will close this showroom next month. I can't afford the rent anymore," Munandar said. He added that he had not had a single buyer in the last four months.

Wooden boxes, ashtrays, bookshelves, unique bags and other souvenir items that he created in his workshop in Bantul regency, along with his five workers, are actually flawless.

The last order he received was in September last year from a Japanese buyer who ordered 500 beautiful wooden bags. He might have got a regular order from his foreign buyer if he could have finished the first one within a month as promised but unfortunately, he completed it in two months.

"At that time, I was having financial problems. I couldn't get raw materials quickly," Munandar recalled.

Yogyakarta is well-known as a center of handicraft producers who are capable of creating various kinds of artistic pieces.

In the city, one can find almost all kinds of handicraft products including jewelry, furniture, garments or office products.

Yogyakarta craftsmen can create a variety of handmade products using almost any raw materials such as wood, metal or clay. Numerous shapes and varieties of silver handicraft, for instance, can be found in Kota Gede, leather products in Bantul, ceramic items in Kasongan and many more.

Many shops based on the tourist island of Bali order their merchandise from Yogyakarta.

Official data estimates that in Yogyakarta, there are some 77,000 handicraft producers, most of which are small-scale operations. In 2001, Yogyakarta exported 900 containers of handicrafts per month, including furniture, ceramic items and other handicraft products.

Munandar exemplifies the problems faced by most of the handicraft producers in the province. Limited capital, poor management and poor marketing skills are among the problems they face in running their small businesses.

In the last few years, however, some investors, both foreign and local, who have learned about business opportunities in this sector, have started to invest their money in handicraft businesses for the export market. Among them are Out of Asia, in Tembi village in Bantul regency, Moeson Antique on Jl. Parangtritis, and others. With their overseas marketing networks, as well as their aggressive marketing strategy, these companies can win large orders for handicraft products.

Setting up trading companies in the place where plenty of beautiful handicrafts are created is, of course, a smart move. In a way, their presence benefits handicraft producers, who mostly do not have enough skills to market their products.

"Trading companies give me regular orders, so I can keep producing," owner of Java Ethnic Art handicraft workshop Dartono said.

Trading companies usually have sophisticated showrooms where potential buyers can see various handicraft items produced by local craftsmen on display. Some of them even have their own handicraft designs.

The new investors also help handicraft producers with their financial problems. A trading company, for instance, will pay handicraft producers 50 percent of the order value up-front.

More investors, including several giant companies, are reportedly planning to take this business opportunity.

A survey by Yogyakarta-based nongovernmental organization the Center for Economic and Social Studies (CESS) shows that only 2 percent of handicraft producers can sell their products directly to the overseas market, while the rest (98 percent), have to use trading agencies in marketing their product overseas.

Trading companies, however, are not the only solution to boost the marketing of handicraft products. Associations of handicraft producers have also started to establish joint trading houses, which will help marketing the handicraft products of their members.