Trade dispute undermining performance of the furniture sector

The Ministry of Industry (Kemenperin) said it would continue to support growth in the furniture industry.

However the sector has faced problems as the Ministry of Industry records show the value of furniture exports reached only around US$730 million in the first half of this year while exports in the first 6 months of last year reached US$845 million, in a report by ITTO.

Gati Wibawaningsih, Director General of Small and Medium Industries in the Ministry of Industry suggested the decline in exports was due to the effects of the US/China trade dispute. Gati said he expects around 52 foreign manufacturers to relocate to Indonesia and that this would boost furniture output.

In related news, as many as 200 Chinese timber entrepreneurs are considering investing in Central Java, according to the Investment Coordinating Board (BKPM).

This was the result of a meeting with the Shandong Timber Employers Association at the Indonesian Embassy in Beijing recently.

During this meeting, the BKPM team, represented by the Director of Services and Regional Planning Nurul Ichwan and members of the Investment Committee, explained how investors will be supported in resolving problems.

The Shandong entrepreneurs indicated they are considering relocating to East Kalimantan because the price of land in East Kalimantan is much cheaper than in Central Java. In addition, East Kalimantan has abundant forest wood.