T

he moratorium on exporting raw rattan would affect producers in Kalimantan and Sumatra, as they export most of their product rather than sending the raw rattan to domestic furniture makers.

The moratorium was announced by Gita Wirjawan on Friday, who said a Trade Ministry regulation would be issued in November for implementation in December.

Indonesian Rattan Entrepreneur Association (APRI) vice chairman Julius Hosan said on Sunday that the moratorium ruined the present situation, citing the regulation that said raw rattan producers had to supply a certain amount of their product to local furniture industries in Java before receiving an export quota.

“With the ban, we cannot see a future for raw rattan industry outside of Java. The government only pays attention to furniture industries in Java without considering raw rattan industries in Kalimantan, Sulawesi, Sumatra and even Maluku,” he told The Jakarta Post over the phone.

He said that there were at least 60 raw rattan producers outside Java, emphasizing that the ban might also cause anxiety among farmers.

Julius hoped that, although the ban was about to start, raw rattan producers could still export raw rattan during “the transition period” until its full implementation.

He also said that if the government was determined to fully utilize raw rattan for local furniture industries, then they should also manage the flow of synthetic rattan from both abroad and local industries in Java to ensure the use of original rattan.

The decision to ban raw rattan exports came after a discussion in Cirebon, West Java, involving Gita, Industry Minister M.S. Hidayat, Forestry Minister Zulkifli Hasan, West Sulawesi Governor Anwar Adnan Saleh, Cirebon Regent Dedi Supardi and representatives from the Indonesian Furniture Entrepreneurs Association (Asmindo), the Indonesian Rattan Furniture and Craft Association (AMKRI) and APRI.

Hidayat said the ban could resurrect the nation’s rattan furniture industry, including in Kalimantan and Sulawesi. “We plan for the exports to focus on finished rattan products rather than raw rattan,” he said in a statement.

Dedi said the ban would provide more stock for furniture industries and that furniture industries in Cirebon enjoyed their heyday in the 1980s, employing some 300,000 people.

Raw rattan began being exported in 2005, which caused a collapse in 70 percent of the furniture industry. AMKRI secretary general Abdul Sobur said that rattan furniture industry revenues have dropped from US$350 million in 2005 to $50 million in October 2011 and that the government’s steps were wise, as there would be more workers employed.

“For one container of exported raw rattan, we only need three workers, while a container of exported rattan furniture needs at least 40 workers,” Abdul said over the phone.

He cited how the furniture industry center in Cirebon employed some 70,000 workers. If workers from around the center were also involved, Cirebon could employ at least 400,000 workers.

Abdul also said the government had started developing the furniture industry in Kalimantan and Sulawesi, although they were still held back by poor infrastructure.

“Those industries would help minimize the cost of transporting raw rattan to Java. There would be greater cost efficiency if we would build furniture closer to the source of the raw rattan,” he said. (fem)