"The raw materials for the furniture and handicraft industries in Indonesia can be said to be quite abundant, especially from production forests, which have an area of 68.8 million hectares," Kartasasmita observed while joining the opening of the Indonesia Furniture Expo (Ifex) Virtual Showroom from Jakarta on Monday.
The minister said that Indonesia's tropical climate is also very favorable, where various types of trees can grow quickly.
Additionally, Indonesia is a producer of 80 percent of the world's rattan raw materials, and rattan-producing areas in Indonesia are located on several islands, especially the islands of Kalimantan, Sulawesi Island, and Sumatra Island, he added.
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"The government, especially the Ministry of Industry, will also continue to provide facilitation for the ease of doing business," Kartasasmita said.
Government instruments for developing the furniture and handicraft industry include the facilitation of raw material logistics centers, implementation of machine/equipment revitalization programs, facilitation of furniture polytechnic, implementation of development programs in furniture design, provision of tax holiday incentives, tax allowance, super deduction tax for R&D and vocational training, application of the Indonesian National Standard (SNI), the National Working Competency Standards (SKKNI) as well as the local content requirement (TKDN), and facilitation of participation in national and international exhibitions, he informed.
The comparative advantage offered by the availability of abundant raw materials, supported by the ease of the government's business climate through Law 11/2020 on Job Creation, is expected to create an industry that produces high added value, according to the minister.
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Earlier, Kartasasmita had said that organizing Indonesia Furniture Expo (Ifex) 2021 Virtual Exhibition, the largest furniture and craft exhibition in Indonesia, has had a positive effect on the Indonesian furniture industry.
The minister explained that Ifex has, so far, been held annually and has become the largest furniture exhibition in Indonesia and even in Southeast Asia.
Minister Kartasasmita said he was optimistic that the virtual version of Ifex would not dampen the enthusiasm of exhibitors and would continue to offer an optimal shopping experience to buyers.
The minister also expected sales figures to rise since, unlike physical exhibitions, the online expo would not involve transportation and accommodation costs.
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