Tegalwangi losing rattan competition
Jakarta Post, Indonesia
Once a household name for its rattan furniture, Tegalwangi, in Cirebon regency, West Java, is not the city it used to be.
Tough competition, especially from products imported from China, is among the reasons blamed for Tegalwangi’s decline and falling exports.
According to the chairman of the Cirebon chapter of the Indonesian Furniture and Handicraft Business Association, Sumartja, the city has suffered a decline in rattan exports, from 700 containers in September 2005 to 600 containers in October 2005.
“During the heyday of the country’s rattan industry, our rattan exports reached 2,000 containers per month,” he said.
He attributed the decline to various factors, including a government regulation allowing raw rattan exports, which benefits other rattan producers like China and Vietnam. “The government’s policy is like giving our enemy ammunition to kill us,” he said.
He predicted the situation would get worse, with only about 30 out of more than 120 rattan producers still in business. “The rest of them are losing out in the competition and going bankrupt. The consequences include an increasing unemployment rate since the companies can no longer operate,” he said. (JP/Nana Rukmana)