The Chairman of the Indonesian Furniture and Craft Industry Association (HIMKI), Supriyadi, said the value of Indonesia’s exports of furniture and crafts will likely fall below US$1.2 billion by the end of this year and the downturn in exports is already having a major impact on companies, many of which have either stopped operating or cut production. Source: Tropical Timber Market Report
This has resulted in job losses in the sector and until domestic and international demand picks up prospects are bleak.
The Director General of Small, Medium and Various Industry of the Ministry of Industry, Gati Wibawaningsih, agreed with the forecast export earnings saying this year furniture and craft exports will not reach the US$2.4 billion level achieved before the pandemic.
The General Chairman of the Association of State-Owned Banks (HIMBARA), Sunarso, has emphasised that the Bank would help small and medium industries in this sector by bringing together HIMKI members and potenetial buyers at an event in Jakarta in December. Sunarso also said that he would work with HIMKI to find solutions to the issue of raw material supply.
On a brighter note, HIMKI predicts that in 2021 the furniture and craft market will return to normal as it expects demand in the second half of this year will slowly start improving.
The Indonesian Furniture and Handicraft Association (Asmindo) conducted a survey on the impact of the pandemic on furniture & craft SMEs in 24 central areas in Indonesia.
This survey was conducted 2-8 July and attracted responses from 1160 out of 2500 Asmindo member companies in 24 regions.
The survey revealed that 60% of respondents experienced order delays from the domestic market which amounted to Rp.173.46 billion and 86% of respondents experienced order delays in the export market with a value of Rp.545 billion.
Furthermore, 30% of respondents experienced order cancellation in the domestic market amounting to Rp65 billion with 40% of respondents experiencing export order cancellations with a value of Rp225.52 billion.
