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Ministry of Industry Stimulates Performance of Rattan Furniture Industry

The Ministry of Industry (Kemenperin) continues to spur the performance of the rattan furniture industry to contribute significantly to the national economy. Moreover, this strategic industry is in line with downstream policies that can increase the added value of domestic raw materials. 

Plt. The Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, when reviewing PT. Aida Rattan Industry in Cirebon said that Indonesia has great potential in developing a globally competitive rattan industry, because it is supported by the availability of rich natural resources and skilled human resources. 

Putu emphasized that during the C0v1d-I9 pandemic and the Implementation of Community Activity Restrictions (PPKM), his party was determined to maintain the activities of the rattan furniture industry, which is included in the essential sector. This is because this industry is an export-oriented sector that generates foreign exchange. 

“Currently, a number of essential industries are in the pilot phase of implementing health protocols, operating at 100 percent capacity. employees who are divided into at least two shifts," he said in an official statement, Friday, August 27, 2021

This is in accordance with the Instruction of the Minister of Home Affairs Number 35 of 2021 regarding PPKM Level 4, 3, and 2 C0v1d-I9 in the Java and Bali regions. To ensure the trial runs well, the Ministry of Industry continues to actively monitor and evaluate.

“For example, we conduct working visits to monitor guidelines or facilities owned by companies in an effort to prevent the spread of C0v1d-I9. Besides that, I also saw firsthand the use of the PeduliLindung application, which is easier and more effective,” said Putu.

Putu gave his appreciation to PT. Aida Rattan Industry, which is ready to resume full operations, while still adhering to strict and disciplined health protocols. In fact, this factory which has a total workforce of 144 people, as many as 122 employees (85 percent) have been vaccinated.

In addition, Putu sees that generally every production facility in the industrial sector is accustomed to implementing health protocols for its employees, such as the use of masks.

“So, actually it just needs to be tightened again, starting from entering, taking breaks, until employees leave the factory. Prokes must be maintained so as to ensure that all are healthy and production runs well," said Putu.

Putu is optimistic that if industrial production activities can be well maintained, it will spur investment and employment. This can accelerate efforts to recover the national economy. Moreover, 100 percent of the products produced by PT Aida Rattan Industry are export-oriented.

In January-May 2021, exports of rattan-based furniture penetrated USD 67.67 million, an increase of 31 percent compared to the same period last year of USD 51.62 million. The main destination countries for national furniture exports include the United States, Italy, Germany, Japan, the Netherlands, England, and France.

Meanwhile, cumulatively, exports contributed by the furniture industry reached USD 1.91 billion throughout 2020. This sector has 1,114 companies spread across various regions of Indonesia, with a total production capacity of 2.9 million tons per year and a total workforce absorbed as many as 143,119 people.

So far, the Ministry of Industry has initiated various programs and policies to increase the competitiveness of the furniture industry in the country. For example, maintaining the availability of raw materials, providing fiscal and non-fiscal incentives.

Putu added that the impact of the pandemic brought changes to household spending, such as the shift from costs for entertainment or tourism to the need to organize or renovate homes. One product that is quite widely absorbed is furniture and handicrafts.

"This provides opportunities for the industry, especially with the online shopping pattern which also boosts sales of furniture and handicraft products," he added.

Meanwhile, the President Director of PT. Aida Rattan Industry, Prayitno said he was grateful to the Ministry of Industry as the industry coach, which has given full attention to keeping the furniture sector operating during the pandemic. In addition, various policies have been initiated to spur the competitiveness of the industrial sector.

"We are committed to implementing health protocols strictly and with discipline. We have implemented the PeduliLindung application, in addition to conducting a self-assessment, as well as forming a task force in the prevention and control of C0v1d-I9," he said.

Prayitno stated that the company continues to strive to accelerate its utilization in order to meet the needs of potential buyers. In addition, the company actively conducts research to create new innovations for its products to make it more competitive in the global arena.

“Currently, we have superior products, namely rattan blocks and vinyl rattan which are exported to Germany. One of them is used as a car interior component to be re-exported to the Chinese automotive industry. In the next five years, we will supply the automotive industry in Europe," Prayitno.

Last year, the export of PT. Aida Rattan Industry penetrated more than USD1 million. It is estimated, with the export of rattan blocks and vinyl rattan, it can reach USD 2 million in 2022. Meanwhile, the company has poured an investment value of Rp. 30.5 billion.

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