The Indonesian Furniture Entrepreneurs Association (Asmindo) hopes to the stem the drop in exports at 7 percent in the last quarter this year from a year earlier, after a 20 percent slump was recorded in the first and second quarters.
Asmindo chairman Ambar Tjahyono said Tuesday the value of exports of wooden and rattan furniture was expected to stand at US$372 million in the last quarter of this year.
"We will be able to keep the drop at 7 percent to 10 percent in the last quarter of this year if we push our sales in October, November and December, the high seasons for furniture sales," he said.
"During the upcoming Christmas season, revenues could double, or even triple."
Exports of wooden and rattan furniture stood at $240 million in the first semester of this year, a 20 percent drop from the $300 million recorded in the first half of last year, Asmindo data shows.
Ambar said that good marketing, a furniture exhibition planned for October that would bring an expected 2,500 foreign buyers, as well as government support would help in reaching the target.
He said he expected buyers from "non-traditional countries" like Russia and the Middle East would attend the exhibition. "Traditional" countries include Japan, the United States and the European Union.
In a bid to increase the price received for Indonesian wood and rattan on the global market, Ambar said Asmindo was lobbying global environmental certifiers to certify Indonesian products.
He said environmentally certified wooden and rattan furniture should add 10 percent to sale prices. However, overseas buyers are currently offering the same price for products, regardless of certification.
Of the 2,400 businesses exporting the furniture, only 160 have obtained the certificates, which last a year. Ambar has set a target of certifying 200 exporters by the end of this year, be he is not optimistic this target can be reached because "the certification process can take four to six months" and costs Rp 60 million ($6,000) to Rp 100 million.
Wood certification assures products are derived from sustainable forests and not from illegally logged timber. The certification can come in the from of a Verification of Legal Origin (VLO), Chain of Custody (CoC) certificate or Sustainable Forest Management (SFM) mark. Exporters can choose any of the three forms of certification, all which guarantee wood comes from sustainable sources.
