VIVAnews - Furniture buyers from the United States are diverting orders from China to Indonesia. The value of orders is estimated to reach US$250 million in the next one year. The order shifting started taking place in early December 2008.
"The amount includes investment relocation from China," said Head of Indonesian Furniture Industry and Handicrafts Association (Asmindo) Ambar Tjahyono after opening the Fifth National Meeting of Asmindo on Friday, Dec 12.
One of the buyers, said Ambar, is negotiating with a furniture company in Surabaya, East Java. "It's worth around US$50 million," Tjahyono said.
The United States decided to relocate order because the quality and longevity of Indonesia's furniture is considered better than those made in China, let alone the design.
In addition, Chinese products are poorly controlled. "Many Chinese furniture causes skin irritation after they are utilized," said Tjahyono.
The portion of China's exports to the United States reaches 80 percent while Indonesia is at 37 percent. With the furniture order relocation, Tjahyono estimated that 1.25 million workers will be absorbed.
However, Tjahyono questioned the readiness of Indonesian furniture entrepreneurs and government policies as regards the issue. "Will furniture entrepreneurs be ready to meet certification requirements?" Tjahyono said.
Up until today, 125 furniture companies have been certified. The size of the furniture industry is up to 3,000 companies.
Translated by: Bonardo Maulana Wahono
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