Amid The COVID-19 Pandemic, Indonesian Furniture Exports To The United States Rise 51.3 Percent

Illustration. (Photo: Unsplash)

JAKARTA - The COVID-19 pandemic has not dampened Indonesia's export performance. Based on data from the Glocal Trade Atlas (2020), it was noted that furniture exports from Indonesia to the US jumped significantly in the January to May period amounting to US $ 582.11 million.

The head of the Indonesian Trade Promotion Center Los Angeles (ITPC LA) Bayu Nugroho said Indonesia's exports to the US had increased by 51.3 percent compared to the same period the previous year which was recorded at US $ 384.82 million.

"This increase certainly provides a breath of fresh air to the performance of national exports. We must take full advantage of the momentum of the surge in Indonesian furniture exports to the US, especially in the midst of the COVID-19 pandemic. This is a great opportunity for Indonesian SMEs in the Indonesian furniture sector to enter the US market. "he said, in Jakarta, Wednesday, July 22.

Bayu conveyed that the US West Coast region was the largest contributor, reaching 62.9 percent of the increase in exports of this furniture. Exports to the US West Coast for the January to May period reached 366.21 million US dollars. This value increased by 72.15 percent, compared to the same period in the previous year which was only 212.72 million US dollars.

The states in the US that recorded the largest increase were Arkansas with 456 percent, Montana 216 percent, and New Mexico with 213 percent. Currently, said Bayu, the concentration of furniture exports from Indonesia to the US West Coast is to California amounting to US $ 212.97 million, Georgia US $ 38.07 million and Texas US US $ 37.04 million.

"Currently, Indonesia is ranked 8th largest furniture exporter to the US. Total exports of Indonesian furniture to the US in 2019 were recorded at US $ 1.04 billion, an increase of 29.16 percent compared to 2018 which amounted to US $ 808.77 million. , "he said.

Based on BPS data processed by the Ministry of Trade, the total trade between Indonesia and the United States for the period January to May was recorded at 10.75 billion US dollars, with a surplus for Indonesia of 3.70 billion US dollars. Meanwhile, in 2019, the total trade between the two countries reached US $ 27.11 billion with a surplus for Indonesia of US $ 8.58 billion.

Exploring Virtual Trade Agreements

Taking advantage of this momentum, ITPC LA continues to strive to encourage furniture exports by conducting virtual business matching, especially for furniture products on Friday, July 17.

The business matching succeeded in bringing together nine export-oriented small and medium enterprises (SMEs) in the furniture sector assisted by the Ministry of Trade with three buyers from the United States (US), namely American Furniture Manufacture Inc. (AFM), Bali Aga, and Kasih Coop.

According to Bayu, this business matching is also a follow-up to business coaching which was held on July 9. This training was held in cooperation with the Ministry of Trade through the Indonesian Trade Promotion Center Los Angeles (ITPC LA) and the Indonesian Export Training and Education Center (BBPPEI).

Through this business matching, continued Bayu, SMEs assisted by the Ministry of Trade and buyers can exchange information to increase the promotion of their products in the US market. In addition, this activity is a tangible form of the Ministry of Trade's support for Indonesian SMEs to penetrate the international market.

"At the discussion session, US importers expressed their interest in several products displayed by Indonesian SME players. Furthermore, ITPC Los Angeles will continue to help SMEs, one of which is by facilitating further communication between Indonesian SME players and importers so that they can materializing new export transactions, "he said.

The series of virtual business matching in collaboration between ITPC Los Angeles and BBPEI will be held again on July 21 for fashion products. Previously, on July 14, ITPC Los Angeles together with BPPEI also held a similar activity for food and beverage products.