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t has not taken long for newly appointed Industry Minister Airlangga Hartarto to set the ambitious goal of a 150 percent increase in furniture exports within the next five years. It will be a herculean task given the country’s latest growth rate.

“Within the next five years, I want to see an increase to US$5 billion in exports, with annual growth of 18 percent. Can you do that for me?” Airlangga asked Indonesian Furniture and Handicraft Affiliation (HIMKI) chairman Soenoto during the inauguration of HIMKI’s new central executive board on Thursday.

Soenoto could only respond with a chuckle, while the audience laughed at the question.

Airlangga, a Golkar Party politician who was inaugurated as minister just the day before, seems keen on developing Indonesia’s furniture sector. The sector still lags behind other Asian countries, despite posting growth over the past few years.

Data from HIMKI shows that China and Vietnam gained $50 billion and $6 billion, respectively, on average per year from exports of furniture and handicraft products.

On the other hand, according to the ministry, Indonesia only obtained $2.46 billion from the same exports last year, a slight increase from $1.9 billion booked in 2014. The growth rate in the sector for the past three years has only stood at 44.4 percent.

In a bid to speed up the growth rate, the ministry plans to collaborate with various industry players, especially the ones associated with HIMKI.

HIMKI itself is a new entity that arose from the merger of the Indonesian Furniture Entrepreneurs Association (Asmindo) and the Indonesia Rattan Furniture and Craft Association (AMKRI).

Airlangga said his ministry would issue regulations to boost the furniture industry, not to “irritate business players”, and to develop new manufacturers outside Java, particularly around border areas like Kalimantan and Papua that produce sizable amounts of raw rattan and timber.

He added that the government would also provide financial support for new businesses so that they could help develop the local economy, in line with President Joko “Jokowi” Widodo’s target of decentralizing industrial activities across the country.

As businesses get closer to timber sources, Soenoto said they could cut production costs and sell the end products at a relatively cheaper price.

HIMKI has called on the ministry to create a road map for furniture and handicraft exports to allow businesses to gain wider access to international markets.

“We plan to penetrate new markets, such as Middle Eastern countries, Latin America and eastern Europe,” he said.

The Industry Ministry’s director general for base manufacturing industry Panggah Susanto said all players, from the upstream to the downstream sectors, must work together to secure raw materials and to come up with attractive end products. (vps)