LPEI: Wood To Furniture Products Have The Opportunity To Give The Highest Export Value For Central Java Province

Photo: Doc. Antara

JAKARTA - The Indonesian Export Financing Agency (LPEI) said that wood products to furniture have the opportunity to provide high export value in Central Java this year.

"Some products have a significant export opportunity value in 2024, including wood products estimated at a value of 2.20 billion US dollars, furniture 2.30 billion US dollars, and Atsiri oil for beauty products which are estimated to reach a value of 1.40 billion US dollars," said Market Intelligence & Lead Management Chief Specialist LPEI Rini Satriani in Jakarta, quoted from Antara, Thursday, July 11.

With the performance of these superior products, LPEI is optimistic that Central Java's export performance will remain stable until next year.

In general, Central Java's export distribution is dominated by several main commodities, such as non-grained clothing and accessories (20.18 percent), knitted clothing and accessories (12.24 percent), footwear (11.01 percent), wood and goods made of wood (9.98 percent), as well as furniture, lighting, and lighting (7.20 percent).

This diversification shows Central Java's ability to produce various types of products that are in demand in the international market.

The United States is the largest export destination country for Central Java with a contribution of 30.43 percent, followed by China (7.66 percent), Japan (6.51 percent), Singapore (6.49 percent), and the Netherlands (5.6 percent).

In addition, the number of buyers working with Central Java exporters continues to increase, with 22.25 percent of whom are loyal buyers.

To support this potential, LPEI provides various facilities to exporters, such as business matching.

That way it is hoped that business actors can expand access to international buyers, both conventionally and digitally.

In addition, LPEI also provides Special Export Assignment Programs (PKE) in accordance with existing export profiles/characteristics, including PKE UKM (designed for export-oriented SMEs), PKE Regions (for non-traditional state destinations) markets, and PKE Trade Finance (with trade transaction schemes).

"As of June 2024, LPEI is recorded to have disbursed regional PKE facilities of IDR 4.24 trillion with exports of more than 40 countries,"

PKE Trade Finance amounting to Rp8,187 billion with exports of more than 55 countries, and PKE UKM of up to Rp1.05 trillion for export share to more than 65 countries.

One of the business actors who have utilized PKE LPEI financing is Margono Paper, a fancy paper manufacturer with 90 percent of its products exported to 50 countries on five continents.

Financing PKE Kawasan dari LPEI membantu usaha Margono Paper dalam mengembangkan bisnis dengan menambah negara tujuan ekspor ke negara-negara non tradisional.

The COVID-19 pandemic has closed the fancy paper factories in Europe and China. This opens up opportunities for Margono Paper to expand exports to new countries and continue exports," said Export Director of PT Margono Paper Ferianti Chandranta.

Ferianti added that the competitive interest offered by LPEI helped the company accelerate cash flow and increase capital to buy raw materials, which ultimately encouraged the company's innovation by increasing the variety of other products.