Owning 68.8 Million Hectares Of Production Forest, Minister Of Industry Agus Gumiwang: Indonesia Is Able To Supply 80 Percent Of The World's Rattan Needs

Illustration. (Photo: Doc. Antara)

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said Indonesia is able to supply 80 percent of the world's rattan needs for the furniture and handicraft industries so far. The rattan is produced from 68.8 million hectares (ha) of production forest throughout Indonesia.

Furthermore, Agus said that this achievement was supported by the number of rattan production forests owned by Indonesia. The rattan production forests are spread over several large islands such as Kalimantan, Sumatra and Sulawesi. As for the industry, most of them are located on the island of Java.

"Indonesia's tropical climate is also very favorable for various types of trees to grow quickly. Then Indonesia is a producer of 80 percent of the world's rattan raw materials," he said at the Indonesia International Furniture Expo (Ifex) Virtual Showroom, Monday, September 20.

With the abundance of existing potential, said Agus, the government will optimize it to develop industrialization. In fact, in order to develop rapidly, the government has prepared various incentives in the form of tax reductions.

There are several tax reduction schemes that will be provided, namely tax holidays for large investors, tax deductions for investors conducting research and development of the furniture industry in Indonesia and the ease of obtaining Indonesian National Standard (SNI) certificates. This includes the convenience of participating in national and international exhibitions.

Meanwhile, in terms of production equipment, said Agus, the government will provide tax relief assistance for the procurement of production equipment. This policy will also be given to companies that build furniture polytechnics and develop international quality furniture designs.

"Availability of abundant raw materials as comparative advantages (profits) supported by the ease of the government's business climate through the Job Creation Law is expected to grow an industry that is highly competitive and environmentally sound," he said.

Agus said the outbreak of the COVID-19 pandemic did not make the furniture industry sluggish. In fact, demand and purchasing power are also expected to increase in line with the shift in public consumption from the entertainment, tourism and transportation sectors to the electronics, digital and home renovation sectors.

Therefore, Agus asked the furniture industry players to continue to improve and improve themselves in order to seize this opportunity. Moreover, he said, innovation will increase added value.

"And also the competitiveness of a product is no exception, such as furniture products, especially because this industry is often related to lifestyle. In addition, we also encourage the use of domestic handicraft products," he said.