IFEX 2019 Aims for Furniture Export Opportunities Up to US $ 800 Million
IFEX was held again at the JiExpo Kemayoran on 11-14 March 2019. The biggest B2B furniture and craft exhibition event in the region is expected to boost Indonesia's export performance.
"Indonesia has large capital to become the main player in the furniture industry, especially rattan because of its abundant production. We have opened the National Rattan Innovation Center in Palu to improve the competitiveness of our products, "said the Indonesian Minister of Industry, Airlangga Hartaro in his remarks.
Soenoto, Chairperson of the Indonesian Furniture and Handicraft Industry Association, in his opening remarks at IFEX, added that the opening of this exhibition was to encourage the performance of Indonesian furniture and handicraft exports that must work with other countries. Including with China, the value of furniture exports reached US $ 50 billion more.
Readmore: Indonesia International Furniture Expo (IFEX) 2020
This exhibition is expected to record export transactions of up to US $ 800 million. Furthermore Abdul Sobur, Secretary General of HMKI, said that the potential of the Indonesian furniture industry to contribute to state revenues is very high, especially the TKDN (Domestic Component Level) of high furniture products is also high.
"This exhibition encourages the potential of Indonesian furniture exports. We are targeting the sales value of up to US $ 300 million in the 4-day exhibition event. But actually up to 6 months after the exhibition there was still a sales transaction process that was estimated to reach US $ 800 million. This value increased compared to last year which was valued at US $ 700 million, "Abdul said.
He confirmed what was conveyed by Minister Airlangga Hartarto, about the huge potential of Indonesian furniture exports. It's just that this businessman faces barriers to SVLK (Timber Legality Verification System) in the downstream which become a production burden so that the competitiveness of Indonesian products is low. He revealed that the value reached Rp. 200 billion. "We have tried to suppress it with an approach to the Government," he said. This problem cannot be solved by exporters themselves, needing assistance from the government to facilitate licensing.
According to him, without the massive exhibition activities Indonesian products are difficult to be recognized by the world because they need government support for players in this industry to be able to participate in world class exhibitions. Absul revealed that our furniture exports once reached US $ 2 billion, now down to US $ 1.7 billion
"We lost to Vietnam, some world players have opened factories and offices here moved there, the issue of UMR policy and licensing was the reason," he said. Even thanks to various facilities in Vietnam, the price of their furniture can be 30% cheaper than Indonesia. The tax component of furniture products is only 17%, in Indonesia it reaches 25%, this is certainly an effort to sit together with the government.
IFEX 2019 is participated by 600 companies and 24 of them are foreign companies but those who have factories here. At least there are 4942 visitors and buyers who have registered both from within and outside the country. At least 149 countries of origin for prospective buyers will be present at IFEX 2019.
"Indonesia has large capital to become the main player in the furniture industry, especially rattan because of its abundant production. We have opened the National Rattan Innovation Center in Palu to improve the competitiveness of our products, "said the Indonesian Minister of Industry, Airlangga Hartaro in his remarks.
Soenoto, Chairperson of the Indonesian Furniture and Handicraft Industry Association, in his opening remarks at IFEX, added that the opening of this exhibition was to encourage the performance of Indonesian furniture and handicraft exports that must work with other countries. Including with China, the value of furniture exports reached US $ 50 billion more.
Readmore: Indonesia International Furniture Expo (IFEX) 2020
This exhibition is expected to record export transactions of up to US $ 800 million. Furthermore Abdul Sobur, Secretary General of HMKI, said that the potential of the Indonesian furniture industry to contribute to state revenues is very high, especially the TKDN (Domestic Component Level) of high furniture products is also high.
"This exhibition encourages the potential of Indonesian furniture exports. We are targeting the sales value of up to US $ 300 million in the 4-day exhibition event. But actually up to 6 months after the exhibition there was still a sales transaction process that was estimated to reach US $ 800 million. This value increased compared to last year which was valued at US $ 700 million, "Abdul said.
He confirmed what was conveyed by Minister Airlangga Hartarto, about the huge potential of Indonesian furniture exports. It's just that this businessman faces barriers to SVLK (Timber Legality Verification System) in the downstream which become a production burden so that the competitiveness of Indonesian products is low. He revealed that the value reached Rp. 200 billion. "We have tried to suppress it with an approach to the Government," he said. This problem cannot be solved by exporters themselves, needing assistance from the government to facilitate licensing.
According to him, without the massive exhibition activities Indonesian products are difficult to be recognized by the world because they need government support for players in this industry to be able to participate in world class exhibitions. Absul revealed that our furniture exports once reached US $ 2 billion, now down to US $ 1.7 billion
"We lost to Vietnam, some world players have opened factories and offices here moved there, the issue of UMR policy and licensing was the reason," he said. Even thanks to various facilities in Vietnam, the price of their furniture can be 30% cheaper than Indonesia. The tax component of furniture products is only 17%, in Indonesia it reaches 25%, this is certainly an effort to sit together with the government.
IFEX 2019 is participated by 600 companies and 24 of them are foreign companies but those who have factories here. At least there are 4942 visitors and buyers who have registered both from within and outside the country. At least 149 countries of origin for prospective buyers will be present at IFEX 2019.
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