YOGYAKARTA - Indonesia has various potentials in the furniture industry in terms of natural, human, and cultural resources. Indonesian furniture products are in demand due to its raw material quality and various designs and shape. According to a researcher at the UGM World Trade Studies Center, Systa Ramania, the prospect for export of furniture is still promising because there is much raw material and creative human resources that can be explored. "With a lot of potential in this country, the wooden furniture industry sector is expected to become one of the mainstay of export deal in the globalization era," said Systa in the weekly discussions at the Secretariat, UGM Library Unit III Building, Level 3, Friday (17/12).
Systa said that the globalization provides opportunities of global economic integration that can be utilized by the labor-intensive sector. With the global trade opportunities offered by globalization, these sectors can be attempted to become 'the winner' in the competitive world of wooden furniture. However, besides the opportunities, global integration also faces obstacles, such as international rivalry between the wooden furniture manufacturers and the power imbalance between the developed countries as buyers and Indonesia as a producer. "If optimal, of course the Indonesian wooden furniture industry could dominate the global competition," he said.
Unfortunately, the government's strategy to develop the furniture industry has not been optimal. Many strategies taken by the government did not work very well, such as the presence of rent-seeking policies that tend to lead to high cost economy, promotion inefficiency in the Ministry of Trade, inappropriate technical assistance, and no government policy about export trademark. This condition is felt by small and medium entrepreneurs, who need assistance from the government to seize the global wooden furniture market. "This is what makes entrepreneurs think that the government is not serious in its efforts to increase the competitiveness of the wooden furniture industry sector," the UGM graduate of International Relations Studies explained.
Therefore, Systa proposed a synergistic strategy, both by government and industry stakeholders, as well as employers and associations. Especially for the government, the presence of woods terminals, infrastructure improvements, IT optimizing, design development, law enforcement, and strengthening the business certification should be considered.