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Budget cuts lead to less furniture exports, association says
HIMKI chairman Abdul Sobur said the country’s furniture industry had been relying on international exhibitions hosted by the government to open the export market, but such events have been discontinued as organizing overseas exhibitions is expensive.
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Among the exhibitors is Kayunara, an Indonesian designer-based furniture company, which launched its 2018/2019 collection of 12 new items. (Courtesy of Kayunara/File)
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resident Prabowo Subianto’s massive budget cuts are expected to dampen the country’s furniture exports, the Indonesian Furniture and Craft Association (HIMKI) warned.
HIMKI chairman Abdul Sobur said the country’s furniture industry had been relying on international exhibitions hosted by the government to open the export market, but such events have been discontinued as organizing overseas exhibitions is expensive.
“We have exhibitions in Dubai with the support from the government [related to the] industry and trade, but they have been canceled in the name of efficiency,” Sobur said during an exhibition event in Jakarta on Thursday, as quoted by Bisnis.
He added that the international exhibitions were crucial for the furniture industry, especially for businesses with limited financial capacity.
Meanwhile, other countries with adequate financial resources have been able to expand their furniture exports to reach non-traditional markets, such as China, Middle Eastern countries and India.
Read also: Indonesia's furniture exporters fear EU deforestation rules
In addition, Sobur warned that the budget cuts could lower furniture sales by up to 50 percent in the domestic market because the government’s spending contributed largely to sales.
