Furniture Exports Forecast To Reach US$2 Billion

Jakarta, Aug 114 (Antara) - The national exports of furniture and handicraft products are expected to reach US$2 billion this year or higher than US$1.8 billion recorded in 2013. Forestry Minister Zulkifli Hasan was optimistic that the exports of furniture and handicraft products will increase following the implementation of the Timber Legality Verification System (SVLK) here on Thursday. "Now, all countries have understood that wooden products from Indonesia are produced legally and sustainably through SVLK. Certification from other parties is no longer needed," he stated after meeting the board members of the Indonesia Furniture and Handicraft Industries Association (Asmindo). Zulkifli Hasan noted that SVLK is a facility provided by the Ministry of Forestry to boost competitiveness of the country`s furniture and handicraft industries. He affirmed that his office also gave special treatment to small industries to meet the SVLK requirement through the provision of group certification and use of legality adjustment document free of charge, among others. Currently, around 60 percent of the country`s furniture industries have adopted SVLK. The Indonesian government has made it mandatory for all furniture and handicraft industries in the country to implement SVLK by January 2015, at the latest. Asmindo Chairman Taufik Gani meanwhile remarked that SVLK is better than the certificates issued by foreign countries. "Indonesia has developed SVLK by itself, and so, it knows exactly which wood is legal and illegal," he pointed out. Gani stated that the foreign exchange income from furniture exports during the period between 2011 and 2013 was recorded at US$1.76 billion, US$1.83 billion, and US$1.81 billion, respectively. The amount was half of the total national exports of wood products apart from pulp and paper. With local content reaching almost 100 percent, furniture and handicraft industries in the country had the potential to absorb almost four million workers. "With SVLK, market penetration has become stronger," he added. Taufik expressed confidence that the country`s exports of furniture and handicrafts will continue to increase, driven by the recovery of the US economy and market expansion to Russia and East Europe. "This year, we are convinced that the exports will reach up to US$2 billion," he noted. Asmindo plans to again hold an International Furniture and Craft Fair Indonesia in March, next year, to promote national furniture and handicraft products. The exhibition, which will be the eighth edition of the event, is expected to be attended by 4.5 thousand buyers from 100 countries and targets an income of US$600 million. Taufik remarked that superiority of the raw materials and cultural qualities of the Indonesian furniture and handicraft products will help the country`s industries to play a bigger role in the global market. Currently, global furniture and handicraft markets are worth up to US$440 billion, while the national market is still one percent of it. "We will start conducting revitalization and strive to become a creative industry by promoting the latest designs," he added.