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Jakarta Post

Furniture makers want more rattan available

  • The Jakarta Post

Jakarta   /   Sat, February 28 2009   /  02:23 pm

Lacking in rattan supply, the nation's furniture and handicraft industry have proposed to the government to take off the 10 percent value-added tax on semi-processed rattan sales in the domestic market. Ambar Tjahyono, chairman of the Indonesia Furniture Industry and Handicraft Association (Asmindo), said the removal of the tax was needed as producers now prefer selling it to overseas markets. "We have had discussions with the Trade Ministry and Industry Ministry on the proposal," Ambar told The Jakarta Post on Friday. Asmindo hopes that the removal of the value-added tax will encourage suppliers to intensify their supply of rattan to local furniture and handicraft companies, which depend largely on the commodity for their raw material. The removal on the tax will also enable craftsmen to purchase raw material at a cheaper price, so helping to make their final product...