Indonesian Rattan Furniture Product Development

Indonesian Rattan Furniture Product Development – Indonesia is the largest producer of rattan commodity raw materials in the world. Almost every year about 85% of the raw material for rattan comes from Indonesia. Of that amount, tropical forests on the islands of Sumatra, Kalimantan and Sulawesi are rattan producers as much as 90%.The rattan commodity is an industrial raw material that is classified as an environmentally friendly material. So that direct rattan industrial products are also environmentally friendly products or green products. Indonesian people have known rattan for a long time. The community uses this plant as raw material for various handicraft and furniture industries in the country. And, at present such industries have also penetrated into various countries, such as China, South Korea and Europe. 

Selling Price of Rattan Handicrafts

The selling price of rattan handicrafts, especially those produced by craftsmen in the country. Ranges from hundreds to thousands of US dollars on the international market. Although the initial raw material price may only be around Rp. 6,000 per kg in handicraft centers. This indicates that the potential for increasing the added value of products owned by the rattan commodity is quite large. Apart from handicrafts, Indonesian people also produce rattan into furniture and this product has long been known by foreign buyers.This was proven by the use of rattan furniture at the Potsdam Conference after World War II in 1945 by world leaders such as Yoseph Stalin as Secretary General of the Soviet Union Communist Party, President of the United States Harry S. Truman, and British Prime Minister Winston Churchill. In fact, Indonesian rattan products have long made the nation’s name proud on the international stage by attending to decorate the rooms of various legendary world leaders. Trade competition over the sale of handicraft and furniture products. Especially those made from rattan, currently does not only occur at the national level such as at the level of traders. But has also penetrated the international market. This has happened because since the last decade several countries have begun to realize the high economic value. This result is through various improvisations and product developments on various handicrafts and furniture made from rattan. 

Indonesian Rattan Furniture Product Development

As a result, it is not only Indonesian entrepreneurs who control the international rattan market. But also businessmen who come from developed countries such as China, Taiwan and Europe. During the period 1995 – 2011, the export performance of finished rattan products from Indonesia have a downward trend. This is in stark contrast to the comparative advantage that Indonesia actually has. The rattan-based industry in Indonesia still has to improve product competitiveness in the global market. Especially in the face of rattan furniture products made in competing countries.Therefore, export players should be able to increase the added value of the product. And the ability to use various types of rattan by mastering design, production technology, finishing and branding to support the development of national exports going forward. In its development, the domestic rattan handicraft and furniture industry still has to experience. An uphill battle to face competition in the global market. One of the critical obstacles faced is the level of availability of raw materials in the country. Which sometimes frustrates rattan product entrepreneurs. 

Domestic Rattan Exporters

Domestic rattan exporters tend to export the raw rattan raw materials they produce. The reason is, they want a standard selling value that they get from foreign traders. Along with the growth of the rattan industry outside the territory of Indonesia, this demands the availability of raw materials and the world recognizes Indonesia as a producer of high quality rattan. This results in the domestic rattan finished goods industry experiencing a shortage of rattan which causes the high price of raw rattan for raw materials for the industry which in turn also affects the high cost of rattan products from Indonesia and reduces product competitiveness. Currently, the need for rattan for domestic industries reaches 62,000 ton per year and it is predicted that this value will continue to increase in the future.With the imposition of a ban on the export of raw rattan by the government, in this case by the Ministry of Trade, it is hoped that the domestic rattan industry will be able to develop and be able to absorb the abundant production of raw materials because it is no longer allowed to be exported. In addition, the rattan industry from competing countries that rely on raw materials from Indonesia will experience raw material difficulties which will make their product prices more expensive and will also experience a decrease in competitiveness in the international market. It is this opportunity that is expected to be captured by domestic exporters and able to stimulate the enthusiasm of business players, especially from the rattan industry sector.