Entering China's Market
This is an example of a never-give-up attitude. Despite the slow growth of the Indonesian furniture industry, businessmen are keen to penetrate fast-growing markets such as China. Indonesian Furniture and Handicraft Association (Asmindo) chairman Ambar Tjahyono, said that slow growth in the US and Europe had reduced importers’ purchasing power. “For instance, Greece’s debts have affected France, Italy and Spain,” he said yesterday. The rupiah exchange rate which has strengthened to the US dollar has also caused exports to fall. As a result, the price of Indonesian furniture overseas has increased by 15 percent. Asmindo has launched the Lecong Project, an exhibition room for Indonesian furniture in Lecong, Guandong. With businessmen from Malaysia, the Philippines, Singapore and Vietnam, Indonesia is studying business collaborations with China. The Chinese government plans to provide subsidy for the project and Ambar hopes the Indonesian government will also contribute. The Industry Ministry’s small and medium-scale industry director general, Euis Saedah, said she was considering assisting Asmindo. The ministry has budgeted Rp371 billion to support the creative industry. Euis said the government previously had an outlet in Kunming, which was effective for the handicraft and garment sectors. “If the Chinese government permits, I want to relocate it to Guangzhou,” she said. news source : Tempo Interactive
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