INDONESIA NEEDS TO BOOST EXPORTS OF RATTAN PRODUCTS

by Andi Abdussalam

Jakarta, Nov 8 (Antara) - Indonesia is the largest rattan producer in the world and has some 40 types of rattan that can be tapped commercially, but industries at home still use only about six to seven types of them.          According to Deputy General Chair of the Indonesian Rattan Entrepreneurs Association Julius Hoesan, rattan industries currently use only some five to 10 percent of the total potential of sustainable Indonesian rattan resources.          The potential of sustainable Indonesian raw rattan is 630 thousand tons per year. When processed into semi-finished goods, it stood at 250 thousand tons per year. There are still many that are unused by the industry.          Thus, Indonesia still has huge rattan potential that can be exploited commercially, especially to increase its rattan-based product exports.     Indonesia was a major exporter of raw rattan products in the past, but it stopped its raw rattan exports in 2011, encouraging local industries to process the commodity at home to gain added values before they are exported.

ACEH UPBEAT ABOUT SUPPLYING RAW RATTAN TO CIREBON

by Andi Abdussalam

Jakarta, Nov 7 (Antara) - Aceh province has expressed its readiness to supply raw rattan to rattan-based product manufacturers in West Java's Cirebon District and serve as one of the raw rattan producers in Indonesia besides Kalimantan and Sulawesi.          Raw rattan has been the subject of business bickering between rattan farmers, collectors, or entrepreneurs and rattan handicraft industry at home.          Raw rattan producers claimed that home industry was still unable to absorb their stock, and hence they fight for exporting the goods. Meanwhile, rattan-based manufacturers often complain of shortage of raw rattan stock.          After all, the government has lifted the Trade Minister's Regulation (Permendag) No. 35 Year of 2011, which banned the export of raw rattan and its semi-finished rattan products.          Now, the rule in force is the Trade Minister's Regulation No. 38 Year of 2017 on the second amendment of Permendag No.84 Year of 2016 concerning the provisions on the export of forestry and industry products.

CIREBON KEEN TO EXPAND RATTAN BUSINESS TO PALU

by Andi Abdussalam

Jakarta, Nov 4 (Antara) - Though it is not a raw rattan producer,  Cirebon, a district town in West Java, is one of the country's rattan-based production centers and is well known for its rattan furniture and handicraft products.         At the same time, Palu in Central Sulawesi, is the largest raw rattan producer in the country.  Hence,  Cirebon rattan entrepreneurs who are members of the Indonesian Furniture and Handicraft Industry Association (Himki) are eager to expand their business to the area with abundant rattan raw materials, namely Palu.         After all, Minister of Industry Airlangga Hartarto advised that  rattan processing industry operating in Java should expand their business to Palu, Central Sulawesi. "We want to invite  furniture industry in Cirebon to go to Palu and see abundant source of rattan raw material there," he said when visiting several furniture factories in Cirebon on Saturday (Nov 3).          Moreover, rattan industry in Central Sulawesi has yet to be developed to its maximum potential. The establishment of the Central Sulawesi National Rattan Innovation Center (Pirnas) three years ago is, however, expected to boost the development of national rattan industries through the availability of new rattan furniture designs and services.

INDONESIA'S RATTAN PRODUCTS EXPECTED TO UNDERGO ROBUST GROWTH

By Andi Abdussalam
Jakarta, Dec 6 (Antara) -- Indonesia's rattan-based products will get another boost with the inauguration of the National Rattan Innovation Center in Palu, Central Sulawesi province, which claims to be the largest rattan producer in Indonesia.          "Our rattan industry has yet to be developed to its maximum potential. The Central Sulawesi National Rattan Innovation Center is, however, expected to boost the development of national rattan industries through the availability of new rattan furniture designs and services," Industry Minister Saleh Husin said after inaugurating the rattan innovation center on Saturday.          The building of the first Indonesian rattan innovation center is located in an industrial area within Palu's Special Economic Zone (KEK).          Central Sulawesi province is the biggest rattan producer in Indonesia, contributing 60 percent of the world's rattan supplies. This makes Indonesia the world's largest rattan producer.          Considered the world's largest rattan exporter, Indonesia's rattan resources are available in tropical forests across ten provinces. Central Sulawesi claims being the biggest producer among them all.

CHAMBER TO ASSIST WITH RATTAN EXPORTS TO EUROPE

By Andi Abdussalam

Jakarta, Nov 24 (ANTARA)  Indonesia was a major exporter of raw rattan in the past, but since last year it has stopped exporting raw rattan and encouraged rattan-made production for exports in an effort to obtain added value from its rattan resources.  Regarded as the world's largest rattan exporter, Indonesia's rattan resources are available in tropical forests across ten provinces. One of the rattan producing provinces is West Sulawesi, where both local and central governments are planning to develop rattan industries to support the country's export target for rattan-made products.          The development of rattan and rattan industries in West Sulawesi is expected to help overcome scarcities of raw materials. The Association of Rattan Furniture and Handicraft makers(AMKRI) previously complained about difficulty in securing rattan.    Association chairman Soenoto said furniture producers operate far below  their installed capacity because of difficulties in securing raw rattan.

GOVT CLAIMS INCREASE IN RATTAN EXPORTS

By Andi Abdussalam

Jakarta, Sept 11 (ANTARA) - The government decision to ban raw rattan exports has only served to boost its sales in the form of finished goods overseas.         In the January - August 2012 period, exports of finished goods rose from about 15 to 31 percent.          "The trade minister's decree No. 35/2011 has shown a positive impact on Indonesia's rattan-based product exports," Dody Edward, the director for export product and creative economy development of the trade ministry, said last week.          He added that the trade minister's decree banning the export of raw rattan had raised the volume of rattan-made products in the first half of 2012, as compared to figures from the same period in 2011.     According to the Indonesian Rattan Handicraft and Furniture Industry Association (Asmindo), Indonesia's exports of rattan-based products in the January-August 2012 period rose 25.2 percent from US$113.6 million in the same period in 2011 to US$142.3 million.          Dody said, with the minister's decree Indonesia no longer exported raw rattan, but only as finished goods. This has only helped Indonesia nurture its human resources for the production of rattan-based products, such as handicraft and furniture, enabling a high quality of exports.          "If we talk about the market, we also have to talk about technological know-how and good human resources. We already have good human resources," Dody said.          He said that although Indonesia's rattan exports were still below those of China, it will hopefully vault into first place in the future.          "Our target is to capture the first rank, which is still occupied by China. We have reliable rattan craftsmen, particularly those in Cirebon, West Java," said Edward.         This has led Asmindo chairman Ambar Tjahyono to predict that Indonesia's rattan and wooden industries would grow by 10 percent this year. However, he added that the economic crisis in Europe could affect Indonesia's rattan exports to that region.           "The US and European economies are predicted to be in a bad state in the next two years and that would cause wooden and rattan furniture industrialists to be in some trouble. So, to overcome this obstacle, the government should provide assistance," Ambar Tjahyono said.          According to him, the best growth the country's rattan-based industry could hope for in this scenario is 10 percent this year and the turnover it could hope for is, at best, US$200 million.           Meanwhile, the rattan furniture industry could yet face an obstacle in the form of inadequate supplies, according to Ambar, who has since last year voiced the need to establish a rattan buffer stock agency to help store rattan stocks.          oreover, a buffer stock could help farmers accommodate their rattan stocks, while industries could be provided with enough raw material supplies from the stocks.          "Rattan furniture industries are facing difficulties in finding raw materials. Raw rattan exports are not allowed, so rattan collectors only gather rattan based on demand at home. This causes the industry to lack raw rattan," Ambar Tjahyono noted not long ago.          A senior trade official said on Wednesday that the idea to form a buffer stock by a number of rattan stakeholders needed to be considered in order to overcome the problem of raw material stocks.           "We need to study carefully the proposal to form a buffer stock and whether or not it would be advantageous for farmers, collectors, producers and customers," Director for National Export Development Gumardi Gustami said.          When the government allowed the exports of raw rattan, rattan industries at home complained of a shortage of raw materials, but since the banning of the exports of raw rattan, farmers and collectors complained of surplus stock which could not be absorbed by industries at home.           Therefore, a buffer stock, similar in character to that of the state logistics board (Bulog) which collects rice, is needed to accommodate farmers' raw rattan and to ensure an adequate supply of stocks for rattan-based manufacturing industries.          Gusmardi said that in the trade minister's decree No. 35/2011 on banning raw rattan exports, matters relating to buffer stock were not regulated.          He claimed, however, that the ban on raw rattan exports had brought benefits to rattan industries at home as indicated by the increase in their rattan-based product exports. In the period of January - June 2012, Indonesia's rattan furniture exports had reached US$97 million, an increase of 15 to 16 percent compared to figures from the same period in 2011.          However, industry voices paint a different picture. Exports declined in August 2012 when compared with figures from the previous month. "The European and United States¿ economic conditions have a big influence on Indonesia's furniture exports," Ambar said during a post-fasting month get-together last week.          Asmindo data showed that Indonesia's rattan exports in 2010 were valued at US$137.9 million, up by 9.6 percent when compared with those in 2009. However, figures dropped by 17.6 percent to US$113.6 million in 2011 due to the global economic crisis.          In August this year, the country's rattan exports dropped to 11.20 million dollars from 16.23 million dollars in July. According to Asmindo, apart from the global crisis, the drop in Indonesia's exports of rattan products was also caused by the banning of raw rattan exports.          "The export ban has no direct beneficial impact on the industry, but adversely it continued to decrease exports," Ambar said.     Asmindo said last year that before the ban on raw rattan exports was introduced, rattan exports could reach 3,000 containers per month.          But following the decree, it dropped to only 700 containers per month.         He predicted that with the uncertain global economic conditions, exports in 2012 could be pegged at best at US$180 million only.          "If in 2011, the export target set at 160 million dollars was achieved, it would be a good thing if we could increase it this year by 11 percent," he said.          He expressed hope that Indonesia could diversify its export destinations from Europe and the United States to China, India, South Korea, Taiwan, the Middle East and Latin American countries.***2*** (T.A014/INE/KR-BSR/F001) 11-09-2012 14:29:5

BUFFER STOCK FOR RAW RATTAN NEEDED

By Andi Abdussalam

Jakarta, April 20 (ANTARA) -  A buffer stock, such as the state logistics board (Bulog) which collects rice, is needed to accommodate farmers' raw rattan and to ensure stocks for rattan-based manufacturing industries.         Rattan stocks have become a problem that has 'pit' rattan farmers and rattan-based industries against each other over the past few years. When the government allowed the exporting of raw rattan based upon a trade  minister's decree in 2009,  rattan-based manufacturing industries complained of shortages of raw materials.         An executive of the Indonesian Association of Handicraft and Furniture Industry, Asmindo, said last year that before the regulation was introduced in 2009, rattan-based product exports could reach 3,000 containers per month. But following the decree it dropped to 700 containers.         So last year the government banned the exporting of raw rattan.  Trade Minister Gita Wirjawan said  the  reason for the  export ban was to maintain the country's rattan industry and forest resources, increase exports of rattan-made products, as well as to prevent raw rattan smuggling.          After the imposition of the ban, however, rattan farmers complained that local rattan furniture industries could not  absorb all of their raw rattan products. Thus, rattan farmers collected rattan only based on demand at home. This often cause shortage of supplies.          The Indonesian Association of Handicraft and Furniture Industry has asked the government to create a rattan buffer stock to overcome raw material problems. A buffer stock could help farmers by accommodating their rattan, while industries could be ensured raw material supplies from the stocks.         "Rattan furniture industries in the region are facing difficulties in finding raw materials. Raw rattan exports are not allowed, so rattan collectors only gather rattan based on demand at home. This causes the industry to lack raw rattan," Asmindo Chairman Ambar Tjahyono noted.          Tjahjono said he hoped the government would set up a buffer stock agency, such as the logistics board, or 'bulog', to collect rattan from farmers and sell it to local industries.          But, instead of creating a buffer stock, the trade ministry opted to ask farmers to store their raw rattan in warehouses where they could receive warehouse receipts to assist them with their financing problems.          "The government has the instrument to help farmers and collectors obtain funds through providing warehouse receipts, but newly cut rattan could not be put in the warehouse before it was first processed to have its quality improved," Mardjoko, the director general of external trade affairs of the ministry of trade, said on Friday.          The director general responded to a proposal by the Indonesian Handicraft and Furniture Industry Association (Asmindo) that a buffer stock should be formed to accommodate the farmers' rattan.          Asmindo asked for the establishment of buffer stocks in an effort to overcome the problem of shortages of raw rattan material. Observers noted that they should not merely provide warehouses where farmers could store their raw rattan and obtain warehouse receipts.          Mardjoko said that the establishment of a buffer stock would need a large amount of funds. "The government will need a large fund to establish a buffer stock. We cannot immediately have funds to form a buffer stock because we should first propose it through the state budget. Deliberations of a state budget draft at the ministry of trade, the ministry of finance and the House of Representatives (DPR) will take a long time," Mardjoko explained.          Regarding the funds for establishing a buffer stock, Ambar Tjahoyono said it was not a significant problem. "The budget needed to set up a buffer stock is only about Rp75 billion, and that amount is not something big. We are ready to bear some of such a fund. The important thing is that industry would not face difficulties in obtaining raw materials," Ambar said.         He noted that the government should provide concrete action for upstream industries, so that downstream industries would also develop well. "Actually, Asmindo supported the ban of raw rattan, but the government must apply a new strategy so that industries would not run short of raw materials," he asserted.         Asmindo has proposed to the DPR's Commission VI on industry and trade affairs the establishment of the buffer stock. It should be set up in Java because downstream industries are mostly operating in Java, he noted.         It seems, however, that the government is offering the warehouse scheme, or even setting up cooperatives.  For this, the trade ministry is planning to form cooperatives in the regions that would function as a collecting agency and provide financing for farmers.         Head of Goods and Services Market of the Future Commodity Trade Supervision of the Trade Ministry, Ismadjaja Toengkagie, said cooperatives in the regions would be established to purchase farmers' raw rattan.         Rattan will have its quality upgraded at the cooperatives before it is stored at warehouses.      "Admittedly, that rattan meets several requirements, but collectors or farmers could not directly store their rattan in warehouses to get receipts because an SNI standard for rattan must be set first," he said.          Ismadjaja Toengkagie said commodities that deserve warehouse receipts were those that met five requirements.         "First, durable commodities that could be stored for at least three months; second, their prices fluctuate, which fall during harvest times and rise during famine; third, commodities with quality matching the Indonesian Quality Standard (SNI); fourth, regular information on their prices is always available; and fifth, they are strategic commodities for home consumption or for exports," Ismadjaja said.         Indonesia's rattan furniture exports in 2009 stood at 37.1 million dollars and dropped to 26.3 million dollars in 2010, but rose to 31 million dollars in 2011.***2*** (T.A014/a/INE/a014) 20-04-2012 19:01

PRODUCERS CRITICIZE GOVT BAN ON RAW RATTAN EXPORTS

by Andi Abdussalam

Jakarta, Dec 2 (ANTARA) - The government has issued a ban on the exportation of raw rattan which it says is an effort to preserve the country's rattan resources but producers label it a decision which  will adversely destroy the commodity's sustainability.          Producers view that the ban would discourage farmers from developing and nurturing the country's rattan which would eventually have an impact on  its sustainability.          After all, the other government reason is to give local rattan industries a chance to develop their business with enough raw materials and added value for the country.          Yet, producers complain that local rattan furniture industries cannot  absorb all of their raw rattan products. Therefore, the Association of Indonesian Rattan Producers (APRI) has criticized the government's policy on raw rattan export ban, saying the government has taken a rash  decision as it did not involve all rattan stakeholders.          The government's decision could have a serious impact on the lives of millions of people who are involved in the production and processing of rattan both in raw rattan producing regions and in the production centers of rattan-based products, APRI general chairman Sabar Nagarimba said recently.          The export ban could ruin the economic value and the sustainability of the country's rattan resources, one of the Indonesian people's commodities they are pride of.          Because of its serious impact on the lives of millions of people in the country, the governors of a number of rattan producing provinces such the governors of Central Sulawesi and Central Kalimantan have written letters to the trade minister and the industry minister asking for a deep study on the shutting down of rattan exports, Sabar said.          According to Sabar, the same voice was also aired by the Indonesian Chamber of Commerce and Industry (Kadin) and APRI, yet it did not get response from the ministry of trade and the ministry of industry.          That's why, rattan producers are questioning why the government is so tough in imposing the ban on raw rattan export, ignoring the fact that it is the livelihood of 17.9 million residents living in 9,248 villages.          Sabar said that the trade minister, the industry minister and the forestry minister should therefore bear the responsibility for the destruction and the disappearance of rattan from  Indonesian forests.         "The government said it would evaluate the policy after it is applied for 6-12 months. This indicates that the government has doubts about it and if it is so, why it does not carry out a deep study before it decides to ban the exportation of the commodity?" Sabar questioned.          He said that the government should not take rattan and the people's fate as guinea pigs. "The government should learn a lesson from its past experience that shutting down rattan exports has never been able to boost the growth of the country's rattan furniture industry," Sabar said.           According to Sabar, the sustainability of rattan could be guaranteed if it has economic value for rattan farmers and collectors. So, the industry minister should have concentrated on thinking how to develop rattan down stream industry so that it would grow healthily without damaging the life of rattan farmers and collectors.          The minister of forestry should also focus on how to preserve the forest as habitat for rattan so that it would not decline as a result of forest conversion into a land of mining and oil palm plantation.          "The government should seek for a win-win solution so that upstream rattan industry will also survive and be protected as the government does on rattan down stream industry. It is needless to say that rattan farmers and collectors as well as its upstream business players are also Indonesian people that deserve protection as well," Sabar aid.          In the meantime, Trade Minister Gita Wirjawan said  the fundamental reason of the rattan raw material export ban policy is to maintain the threshold of sustainable rattan and forest resources, improve industrial utilization and export of rattan products, as well as to prevent the smuggling of certain types of rattan.          Besides that, the government had imposed a ban  on raw rattan  exports  to overcome the raw material shortages being experienced by  domestic rattan-based industries. "We have shut down raw  rattan exports so that the commodity can be fully absorbed  by domestic industries,"  Gita Wirjawan said on Thursday.          Yet, Sabar Nagarimba said recently that Indonesia had a large surplus of rattan stocks. APRI predicted that rattan consumption by industry at home in 2011 is only 15,000 tons while production reaches 696,000 tons.          Secretary General of APRI Lisaman Sumardjani said that in 2009 alone, Indonesia's rattan which was not exported accounted for 628,014 tons or equal to US$1.414 billion in value. The volume of those exported ones was only 67,986 tons.          "It would be  a pity  not to take advantage of this. If the government bans rattan exports, it should think of how to make use of the rattan surplus at home"  Lisman Sumardjani said.          However, the government step to ban the export of raw rattan has so far been requested by the Indonesian Rattan Handicraft and Furniture Industry Association (Asmindo).          Asmindo has expected the ban even before the government issued it. "We hope that the trade minister will not extend a trade ministerial decree which allows the exportation of  rattan raw  material. The regulation should no longer be implemented," Asmindo chairman  Sumartja said.           Previously, the trade minister's decision No. 36/2009 had allowed the exports of raw materials, including raw rattan. Rattan industries had blamed the ministerial decree for their difficulties in obtaining raw materials.           Sumartja said the permit to export raw rattan based on the minister's decree in 2009 had caused the drop in the production of rattan industry. Before the regulation was introduced in 2009, rattan-based product exports could reach 3,000 containers per month. But now it dropped to 700 containers only, said Sumartja.***5*** (T.A014/A/HAJM/15:38/A/O001) 02-12-2011 15:35

EXPORT BAN TO DISADVANTAGE RATTAN FARMERS?

by Andi Abdussalam

Jakarta, Oct 29 (ANTARA) - The government will stop raw rattan exports amid a 'war' between rattan industries and rattan producers over whether the exportation of the commodity needs to be halted.          Rattan industry entrepreneurs have urged the government to stop rattan exports so that they will have enough raw materials while rattan farmers do not want  the government to  stop exports on the ground that  local industries had proven unable to absorb all the rattan they were producing.      "We will issue  a decision to stop export of rattan as a raw material but the policy will be formulated holistically in consideration of conditions in rattan producing regions," Trade Minister Gita Wirjawan told rattan entrepreneurs in Cirebon, West Java, on Friday.          The government will soon  stop rattan exports and let local industries absorb the country's raw rattan output so as to create more jobs and added value. The government decision  is in favor of industry which has called on the government to stop  raw rattan exports.         "We hope that the new trade minister will not extend a trade ministerial decree which allows the exportation of  rattan raw  material. The regulation should no longer be implemented," Chairman of the Indonesian Rattan Handicraft and Furniture Industry Association (Asmindo) Sumartja said.          The trade minister's decision No. 36/2009 allows the exports of raw materials, including raw rattan, causing local industry to face difficulties in obtaining raw materials. As a result, many rattan industries in Cirebon, one of Indonesia's rattan industry centers,   closed down.         "The new trade minister is expected to issue a new regulation which boosts  export of finished rattan furniture and handicraft products, not raw rattan," Sumartja said.          He said that the permit to export raw rattan based on the minister's decree in 2009 had caused the drop in the production of rattan industry. Before the regulation was introduced in 2009, rattan-based product exports could reach 3,000 containers per month. But now it dropped to 700 containers only, said Sumartja.          Thus, tens of rattan industry entrepreneurs  in Cirebon hailed Minister Gita's statements, saying they had suffered great losses over the past six years because of raw rattan scarcities as a result of government regulations.          The government regulations concerned were Trade Minister's Decree No 12/2005 as revised by Trade Minister's Decree No 36/2009.          In the meantime,  Industry Minister MS Hidayat who also attended the meeting with Cirebon entrepreneurs said  the government was resolved to revive the domestic rattan industry's  1980-2000 glory because rattan was one of the country's most precious natural products that should be used for the welfare of the majority of the people.          "So, the policy to stop rattan exports will  not only be to serve the  interest of Cirebon or West Java rattan industries but also for developing rattan handicraft industries in provinces that are also  producing rattan," he said.          Cirebon district head Dedi Supardi  said in the heyday of the rattan industry in 1988-1989, the value of rattan handicraft and furniture exports from Cirebon reached US$124 million a year while as many as 300,000 people were employed in the industry.          In 2010-2011 however the export value dropped by 70 percent. "Only 30 percent of the rattan industries  has survived until now while many of their  skilled workers have changed profession or become unemployed," Dedi Supardi said.          He said rattan as a raw material was now worth only US$1 to US$1.5 per kilogram but when it had been turned into finished products it could be worth US$8 to US$20 per kilogram. "This is the added value that has so far been enjoyed by other countries," he said.         However, from the rattan farmers' point of view, the closure of raw rattan exports is disadvantageous lest there is a guarantee their products would be absorbed by industry at home.          Thousands of tons of rattan, for example, are now piling up at production centers because industries stopped buying them from rattan farmers and collectors. This happens as the export quota has not yet been decided.          Chairman of the Indonesian Rattan Farmers Association (APRI) Sabar Nagarimba said that the allocation for export quota has not yet been issued so that they could not yet export their products.          Actually, the minister's decision No. 36/2009 which expired on August 11, 2011 has been extended until December 31, 2011, but the export quota has not yet been issued.          Therefore, APRI asked the government not to stop raw rattan exports because it would have negative impact on two million rattan farmers and collectors and two million traders in Java, Sulawesi and Sumatra.           Sabar said that Indonesia had a large surplus of rattan stocks. APRI predicted that rattan consumption by industry at home in 2011 is only 15,000 tons while production reaches 696,000 tons.           Secretary General of APRI Lisaman Sumardjani said that in 2009 alone, Indonesia's rattan which was not exported accounted for 628,014 tons or equal to US$1.414 billion in value. The volume of those exported ones was only 67,986 tons.          "It would be  a pity  not to take advantage of this. If the government bans rattan exports, it should think of how to make use of the rattan surplus at home"  Lisman Sumardjani said.          About 85 percent of the world's rattan population is found in Indonesia. World demand for rattan-based furniture and rattan-made handicraft products are relatively high, where in 2008 and 2009 reached around US$100 and US$104 billion.          Of the total market share, Indonesian rattan-based products only accounted for 2.6 billion dollars in 2008 and 2.3 billion dollars in 2009.       "This indicates that the market for rattan-based products was virtually wide open. We need to take advantage of the available market,"  Lisman Sumardjani said.***5*** (T.A014/A/HAJM/00:05/A/S012) 29-10-2011 00:10:

NEW DECREE TO TIGHTEN RATTAN EXPORT RESTRICTIONS

By Andi Abdussalam

Jakarta, Oct 7 (ANTARA) -  The government is continuing to tighten its raw rattan export restrictions so as  to guarantee the availability of raw materials for domestic rattan-based  industries but the policy has drawn complaints from rattan farmers.          Trade Minister's Decree  No. 36/ 2009  which rattan farmers consider to have failed  to bridge the gap between the different  interests of farmers and rattan furniture industries will expire next week.          The government will issue a new decree on  rattan exports but  it  appears it will be not different in substance from the previous one, even through the government wants to further tighten raw rattan exports.      "The new ruling will continue to adhere to the domestic market obligation (DMO) principle. So, the interest of investment at home will remain the focus while some provisions will be further tightened and controlled,"  Director General for External Trade Affairs  Deddy Saleh said here on Friday.          Rattan farmers have complained about the government policy so far because it reduced their rattan exports while their stocks at home, they said, were sometimes not absorbed by local industries.           Last year, Lisman Sumardjani, chairman of the Indonesian Rattan Business Foundation (YRI) said that the export restriction was actually also restricting the  farmers' rattan because they could not sell their products to furniture industries which were not required to purchase the farmers' rattan.           Trade Minister's Decree No. 36/ 2009 on rattan export restrictions  did not bridge the interest between farmers and rattan furniture industries, he said.           Now, the government will issue a new regulation on rattan export to substitute a previous trade minister's decree  which will expire next October 11, yet it seems that it will further tighten its restriction on rattan exports.           That is because according to Director General Deddy, the new regulation is in essence the extension of the previous trade minister's decree, which will protect industry at home.          He said that the government would issue rattan export licenses only if there was a guarantee on the availability of stocks that could meet the need for the commodity of industry at home.          "We will not issue export licenses if the need of local industry for raw rattan could not be met due to lack of stocks. So, it will depend on the need at home. If rattan could be absorbed at home, there is no need to export it," the director general said.          Deddy said that in the new regulation the government would tighten provisions on the issuance of rattan export licenses.          He said that based on the trade minister's decree No.36/2009, registered rattan exporters (ETR) could be granted rattan export approvals for the exportation of "washed and sulphurized (W/S) and semi-finished rattan, particularly rattan of the Taman/Sega and Irit types.          Rattan exporters of this type can get approvals only by enclosing documents (proof) on their rattan stocks, production capacity (for those who have never get export license /SPE) and export performance for at least three month (for those who have owned SPE).          Approvals are also given to exporters of semi-finished rattan, which is not of the Taman/Sega and Irit types. In this case, they have to enclose documents ( to prove) that they have supplied raw rattan to domestic producers of finished rattan goods for three months, and recommendations from the directorate general of forestry production development of the ministry of forestry.          In the new regulation, according to Deddy, besides the requirements above, registered exporters are also required to enclose sales tax notices that have been endorsed by surveyors at ports of shipment and destinations.          He said that the tightening was to be imposed because there was evidence of  practices that manipulated  data on their supplies to industries.          The government is also considering a proposal on the establishment of a body which will manage rattan buffer stocks to ensure the availability of raw materials for domestic industry.          Yet, he said, provisions on the buffer stocks and the body which would manage them could not yet be included in the new regulation because they are still in deep discussions.          "It cannot yet be included in the new regulation because we do not need rough concept but well done one which is ready to be implemented for a long period, including the body and its financing," the director general said.          Earlier, several parties called on the government to revise rattan export regulations as contained in the trade minister's decree No. 36/ 2009.          Business Competition Supervisory Commission (KPPU) saw that several provisions in the decree hampered the growth of rattan exports and rattan industry, calling on the government to revise it.          World demand for rattan-based furniture and rattan-made handicraft products are relatively high, where in 2008 and 2009 reached around US$100 and US$104 billion.          Of the total market share, Indonesian rattan-based products could only reach  2.6 billion dollars in 2008 and 2.3 billion dollars in 2009.  "This indicates that the market for rattan-based products was virtually wide open. We need to take advantage of the available market," Chairman of the Indonesian Rattan Business Foundation (YRI) Lisman Sumardjani said.           He said that the absorption capacity of the domestic market for locally made rattan products was only about 30,000 - 40,000 tons this year, or about 50 percent of the country's production capacity of 696,000 tons.            In a discussion on rattan trade regulation early this year, Ahmad Ramadhan Siregar of the KPPU said that the rattan regulation contained provisions on export restriction that would eliminate the economic potentials of country's rattan business.          He said that the imposition of rattan export quota had caused surplus of stocks which could not be absorbed when demands of domestic industry were declining.          The KPPU suggested that the government in deciding rattan export quota should refer to rattan sustainability potentials, ability of upstream industry (to provide stocks) and domestic absorption capacity  based  data which underwent periodic updates.***5*** (T.A014/A/HAJM/22:55/A/S012) 07-10-2011 23:07:5

RATTAN BUSINESSES COMPLAIN OF GLOOMY PROSPECT

By Andi Abdussalam

Jakarta, July 26 (ANTARA) - Domestic rattan farmers and businesses which once have a glorious era in the past, are now complaining of gloomy prospect as demand for rattan-based products had been declining, causing more than 50 percent of rattan industries at home to close down over the past two years.          This condition has raised concern that the sustainability of the country's rattan business could not be maintained if the government fails to adopt a proper policy regarding the country's rattan potentials.          "The lack of a well-planned policy on rattan exports and the decline in demands for rattan products in the domestic and world markets are threatening the sustainability of rattan business in the country,"  Chairman of the Indonesian Rattan Business Foundation (YRI) Lisman Sumardjani said on Sunday.          Since 2007, the performance of the local rattan industries had begun to slow down and their number had been declining.  In addition, the trade minister's decree No. 36/ 2009 on rattan export restriction which came into effect as of August 11, 2009 was seen by Lisman as something which could not bridge the interest between the farmers and rattan furniture industries.          "The export restriction is actually also restricting the  farmers' rattan business,  because they could not sell their products to furniture industries which were not required to purchase the farmers' rattan," Lisman said last year.          In the meantime,  demand for rattan-based products has been declining. Lisman said on Sunday the decline in demands for rattan made products was among others caused  by the fact that most consumers began to turn to imitation rattan goods.          Actually, he said,   world demand for rattan-based furniture and rattan-made handicraft products are relatively high, where in 2008 and 2009 reached around US$100 and US$104 billion.          Of the total market share, Indonesian rattan-based products could only reach  2.6 billion dollars in 2008 and 2.3 billion dollars in 2009.  "This indicates that the market for rattan-based products was virtually wide open. We need to take advantage of the available market," he said.          He said that the absorption capacity of the domestic market for locally made rattan products was only about 30,000 - 40,000 tons this year, or about 50 percent of the country's production capacity of 696,000 tons.           Lisaman said that the government so far had no well-directed policy about the rattan business. It only often changed its export regulations. And what happened was a disruption of the growth of rattan-processing industries.          If in 2007 the number of rattan-processing industries reached 614 units, in 2008 it dropped to 234, because the declining rattan consumption at home and the banning of raw rattan exports had affected 2.3 million rattan collector farmers.          "Rattan which was formerly a reliable source of living of the locals could no longer be expected to become a source to live on," he said.          He said that in a condition where certain types and volumes of rattan exports had been restricted, the value of rattan exports could only reach 240 million US dollars while in a condition where rattan exports were not restricted the value could reach 1.53 billion dollars. This is based on the figure of exports in the 1990-2004.          With the gloomy prospect, Lisman expressed concern that rattan at home is now facing rapid extinction. He said that the sustainability of rattan could be maintained if world consumers continued to need rattan and its by-products, including rattan-based furniture, and this would benefit local rattan farmers.          "Farmers will gather rattan only if rattan industries at home grow and develop well. Without all these, the story about Indonesia's rattan potential which controls 85 percent of the world market would remain only as a story," he said.          According to Lisman, if managed well, Indonesia's rattan potentials could earn an annual income of  4 billion dollars a year  and could provide jobs for about 5 million people.          Therefore, Lisman asked the government to provide political support in order to revive the demand for processed rattan products. "Besides, all the nation's components should take part in promoting the use of rattan products, such as successful promotion of the use of 'batik'," he said.         Deputy Chief Economic Minister for Industry and Trade Coordination Edy Putra Irawady supported the appeal of the YRI chairman, saying that government agencies should help promote and use rattan furniture.         Edy concurred with Lisman that the sustainability of rattan in the country would face rapid extinction if all parties failed to promote rattan products. Moreover at least 2.3 million poor rattan farmers and rattan collectors earned a living from this sector.          According to Lisman, rattan farmers are the most disadvantaged party with the present condition of rattan business in the country.         He said the government's latest decision on rattan export restriction failed to encourage rattan farmers to help maintain sustainable rattan cultivation.         "It is true if the government has to guarantee rattan stocks for the rattan industry at home but it must also guarantee that rattan farmers would be able to market their rattan products and reap reasonable profit," Lisman said recently.          He said that the government has issued a policy which restricted rattan exports to meet local industries' needs for raw rattan but the furniture industries were not required to purchase the  farmers' rattan.          The trade minister's decree No. 36/ 2009 on rattan export restriction which came into effect as of August 11, 2009 did not bridge the interest between farmers and rattan furniture industries, he said.          He said that the export restriction is actually also restricting the  farmers' rattan because they could not sell their products to the furniture industries which were not required to purchase the farmers' rattan. This would discourage the farmers to preserve the continuity of rattan plantations, threatening the sustainability of the country's rattan industry.           "Farmers are in the front line in the cultivation of rattan that would eventually guarantee the sustainability of rattan in the country. If farmers and locals near forests do not gain benefit from it, they would not help preserve rattan cultivation," he said. (T.A014/a/H-NG/a/o001 ) 26-07-2010 14:54:4