JAKARTA - Entrepreneurs who are members of the Indonesian Chamber of Commerce and Industry (Kadin) have proposed incentives to deregulate the furniture industry to Finance Minister Purbaya Yudhi Sadewa.
"We were discussing about what deregulation or incentives could be done, ranging from funding to also focusing on how it is industrialized," said the Chairman of the Indonesian Chamber of Commerce and Industry, Anindya Bakrie, as reported by ANTARA, Friday, December 19.
He explained that the global furniture export opportunity could reach 300 billion US dollars, while Indonesia's current share is only around 2.5 billion US dollars.
This data indicates that the contribution of the Indonesian furniture industry is relatively small in the midst of large export market opportunities.
During the meeting with Purbaya, the entrepreneur proposed various support schemes that the government could provide.
In addition to funding and industrialization strategies, entrepreneurs also conveyed considerations for more equitable market diversification, given that currently Indonesia's furniture export market is still concentrated in the United States with a share of up to 60 percent.
Apart from furniture, the entrepreneur and Purbaya also discussed the electronics sector. Anindya said Indonesia had explored the semiconductor industry chain through the downstreaming of minerals.
However, this sector still faces challenges in terms of human resources (HR).
"Earlier, we also discussed what kind of cooperation with the Education Fund Management Agency (LPDP) and related institutions, so that Indonesia also has a great added value," he said.
Chairman of the Indonesian Furniture and Craft Industry Association (HIMKI) Abdul Sobur added that the industry expects concrete support from the government, such as a reduction in interest rates or special facilities for cheap capital.
"For example, through the Indonesian Export Financing Agency (LPEI), we can get about 6 percent. However, we hope that the volume will be increased," added Sobur.
Meanwhile, from the employment side, the Chairman of the Indonesian Employers Association (Apindo) Shinta Kamdani said the development of the furniture and electronics industries requires large research and development support.
"It also needs to be a concern, regarding what incentives can be given. Because it is clear that the government must also be present, it cannot only rely on entrepreneurs in terms of research and development," explained Shinta.
In addition, Shinta hopes that the government will strengthen trade agreements that can support micro, small and medium enterprises (MSMEs), especially for potential furniture entrepreneurs.
"So, how can this be in one adequate ecosystem. Financing is obviously important, but aspects related to the development of the MSME ecosystem must also be a concern," he concluded.
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