The Ministry of Industry is Trying to Increase Furniture SMEs

The Ministry of Industry (Kemenperin) focuses on spurring the development of small and medium-sized industries (IKM) in the furniture sector to produce innovative quality products that are export-oriented with the use of legal wood raw materials. To achieve this target, the ministry assesses that it needs to be supported through various strategic policies and strong coordination among relevant stakeholders.

“The programs and activities that have been implemented include the development of material centers in Jepara, development of centers, development of product designs, link and match programs and empowerment of wood Technical Implementation Units (UPT) in furniture centers,” said the Director General of Small and Medium Industries and Miscellaneous Industries ( IKMA) Ministry of Industry, Gati Wibawaningsih, in Jakarta, Monday (7/12).

She explained that the development of the material center facility in Jepara is one of the programs to maintain the availability of raw materials and supporting materials as well as to facilitate the latest machines for furniture IKM in the center. The existence of these facilities is expected to solve the problem of SMIs that do not have the capability to buy raw materials and supporting materials in large quantities.

“This material center is also supported by the use of an integrated online information system, so that IKM can monitor their orders in real time through the application,” he said.

The program in Jepara will become a model for the development of material centers in other regions. She continued, in order to increase the production capacity of furniture IKM players at the center, the Ministry of Industry has wood and rattan UPTs in furniture centers that can help IKM players in terms of utilizing production machines.

“In improving the capabilities of UPT, we have facilitated machines and equipment with the latest technology. As well as improving the quality of human resources in UPT with labor certification in the field of material material and product finishing, “she explained.

She added that the Ministry of Industry also encourages furniture IKM players to seize big opportunities in the domestic market. You do this by facilitating cooperation through a link and match program with several e-commerce furniture in Indonesia, such as

“Through this program, it is hoped that furniture IKM players will get access to study product trends and increase product marketing,” she said.

Meanwhile, to promote national furniture products, the Ministry of Industry facilitates IKM in international exhibitions such as the Indonesia International Furniture Expo (IFEX), the Jogja International Furniture and Craft Fair Indonesia (JIFFINA), and the Virtual Furniture Expo.

The Ministry of Industry noted that the export value of furniture in 2019 was US $ 1.95 billion, up 14.6 percent from 2018 which was recorded at US $ 1.69 billion. As for the main destination countries for national furniture product shipments, as much as 50 percent is to the United States market. During the second quarter of 2020, Indonesian furniture exports exceeded US $ 1.04 billion. It is estimated that it could reach 2 billion US dollars by the end of this year.

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