Friday, February 27, 2009

Eastern Europe : the new export market for furniture

teak furniture

Eastern European countries should be as the new export destination country for furniture production from Indonesia. However, cooperation on banks sector between banks in Indonesia with a bank in Eastern Europe, should start  pioneering now. Ambar Cahyono, Chairman of the Indonesia Association of Furniture and Handicraft (Asmindo), said, for time being the main export destination of Indonesia furniture is still to United States and European countries (excluding Eastern Europe). The current  export volume reaching two billion U.S. dollars per year.

U.S. markets are sluggish at this time, because not recover yet from the global financial crisis. Therefore, Indonesia should create a new market, which is probably the most are : Eastern European countries such as Russia, Hungary, and Bulgaria. The reason, the economic condition of Eastern European countries are not affected by the U.S crisis. In addition, the furniture is also interest by the customer in that countries. The Indonesia competitors only China. However Ambar sure the Indonesia products able to displacement China's dominance by put the right and fast strategy. The obstacles to penetrate the Eastern European market is banking. For time being there in no Indonesia banks  had co-operation with the banks in Eastern Erope. Indonesian have embassies in Eastern Europe that should be encouraged to participate. "However, because the embassy still new, so presumably less of capation ," he said.

The main Indonesian furniture products are made from teak. Each year needed around 600,000 cubic meters of teak for export. This amount is big enough so need to thin how to fullfill the raw materials. How is, of course, by doing the conservation efforts. In connection with that, Asmindo will plant 200,000 seedlings super teak in Central Java and Yogyakarta this year, starting in March 2009.The regions are in Kulon Progo, Gunungkidul (Yogyakarta) and Wonogiri and Tegal (Central Java).

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