To encourage the competitiveness of the national rattan processing industry, the Indonesia government finally decided to ban export of raw rattan materials. Prohibition of export of rattan raw materials was also conducted in an effort to increase the added value and increase domestic employment, as well as stop the exploitation of natural resources rattan.
Minister of Industry Mohamad S Hidayat said prohibition of export of rattan raw materials are expected to revive the industrial centers such as Cirebon rattan, Kalimantan, and Sulawesi.
"We will push the domestic rattan processing activities that will not be exported rattan raw materials, instead of processed rattan products of high added value," said Hidayat.
He said, the export of rattan raw materials for this cause sluggishness in the domestic rattan industry. Because the price of goods from the importing countries of Indonesia rattan raw material is much cheaper.
"Exports of rattan raw materials had been encouraging the development of the rattan industry competitor countries that do not have a source of raw materials of rattan and vice versa the domestic rattan industry actually further decline."