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Rattan producers continue suspending production
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Economic Coordinating Minister Darmin Nasution observes a certain type of rattan at a rattan home industry in Pangkep regency, South Sulawesi in a file photo. Producers of semi-processed rattan still suspend their production amid the absence of a new regulation on exports. (Antara/Basri Marzuki)
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roducers of semi-processed rattan continue to suspend production as they await for the issuance of a new regulation on rattan exports.
Many of them halted operations as rattan farmers were reluctant to harvest the tropical palms with the absence of the new regulation, Indonesian Rattan Producers Association (APRI) deputy chairman Julius Hoesan said on Tuesday.
The drop in rattan supply has also jacked up the price of the raw material, he added.
“[Relevant] ministers have agreed to allow rattan exports, but the regulation has yet to be announced,” he said as quoted by kontan.co.id.
Read also: New rattan regulation benefits exporters, furniture makers: Trade minister
Since 2011, the government has banned rattan exports to help spur the domestic processing industry, particularly furniture.
Julius further explained that the industry could absorb only 30 percent of the rattan supplied by local farmers, and therefore, business players sought to ship semi-processed rattan overseas.
He added that the government could offer temporary permits as it provides training for producers to make use of various types of rattan. (lnd)
