Trade Minister promotes domestic rattan industry

Sukoharjo, C Java, (ANTARA News) – Trade Minister Enggartiasto Lukita said he has promoted the domestic rattan industry to grow further in accordance with President Joko Widodos directive.

The ministry will study the licensing process concerning exports to other countries, Minister Lukita stated while seeing off exports of rattan handicraft products to France by CV Maju Jaya, here, Tuesday.

The Timber Legality Verification System, or SVLK, agreed by the Indonesian Government and the European Union, will also be reviewed, he remarked.

“The obstacles will be reviewed. At the last preliminary (cabinet) meeting, the president asked us to review or evaluate troublesome regulations, both in terms of time and cost. They have to be evaluated because we are facing competition,” Lukita noted.

The ministry will also ensure adequate stocks of rattan and its sustainability.

The minister admitted to having received complaints regarding difficulties in rattan marketing and in obtaining raw rattan at an affordable price.

Basically, rattan can be exported if it is at least semi-processed. If there is export of non-processed rattan, it must be smuggling, he remarked.

The minister said he will invite rattan producers from various regions in Indonesia to promote their products at several major exhibitions, including in the Trade Expo Indonesia, or TEI.

The exports of Indonesias rattan have, in general, dropped due to lack of demand from overseas. The sluggish global economic growth, triggered by global trade conflicts, has affected rattan exports, he stated.

The World Bank has forecast that the global economic growth will drop, from 3.9 percent in 2018 to 3.7 percent in 2019.

Mulyadi, owner of CV Maju Jaya, said his company has exported rattan furniture since 1998 to Australia and European countries, such as Italy and France.

The company exports two to three containers per week, and each container is worth US$20 thousand to US$25 thousand.

Source: ANTARA News