Indonesia boosts exports of rattan products

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Indonesia is the largest rattan producer in the world and has some 40 types of rattan that can be tapped commercially, but industries at home still use only about six to seven types of them and the rattan industries currently use only some five to 10 percent of the total potential of sustainable Indonesian rattan resources.

The potential of sustainable Indonesian raw rattan is 630 thousand tons per year. When processed into semi-finished goods, it stood at 250 thousand tons per year. There are still many that are unused by the industry. Thus, Indonesia still has huge rattan potential that can be exploited commercially, especially to increase its rattan-based product exports. Indonesia was a major exporter of raw rattan products in the past, but it stopped its raw rattan exports in 2011, encouraging local industries to process the commodity at home to gain added values before they are exported. Owing to the ban on raw rattan exports, Indonesia`s exports of rattan-made products jumped, from $137.9 million in 2010 to $1.71 billion in 2015. However, to boost exports, the government began to allow the exportation of semi-finished products in 2017.

Yet, over the past three years, exports seemed to be stagnant. The export performance of the Indonesian furniture industry in the past three years showed a trend that tended to stagnate, wherein it reached $1.71 billion in 2015, $1.61 billion in 2016, and $1.63 billion in 2017. Meanwhile, based on data from the Center for Industrial Studies (CSIL), the world furniture trade is valued at $130 billion in 2015, $131 billion in 2016, and $138 billion in 2017. From the data, it can be seen that Indonesia`s role in global furniture exports is still relatively small as compared to the potential of existing raw materials. This is a huge opportunity for Indonesia to increase its exports while continuing to supply the local market.

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