Indonesia rattan furniture: Simple and sustainable

Rattan manufacturers focus on simple and environment-friendly designs.

Minimalist styles and environment-friendly materials will dominate this year's rattan furniture from Indonesia.

In the recent sourcing report of Developing Country Sourcing, 83 percent of interviewed rattan furniture manufacturers said basic and simple styles would be their R&D focus this year, as these designs have been highly demanded by buyers abroad.

Suppliers also plan to incorporate domestically available materials such as water hyacinth and abaca into their pieces.

Exports

Indonesia is a major force in the furniture industry, ranking as the fifth largest exporter in Asia for 2015. The country exported reached $2.2 billion in furniture for the year, with Japan, the US, the UK, Russia, Germany, the Netherlands, Australia, Belgium, Italy and Taiwan as key import markets.

The industry ministry is optimistic exports will reach $5 billion in the next five years.

Competitive advantages

Abundant sources of rattan and competitive pricing from a large pool of suppliers are the industry's major advantages.

Indonesia is the world's largest producer of rattan, a type of palm that has a fast growth rate of 0.1in a day. This cycle ensures renewable materials are available at steady costs, minimizing imports.

The country also has a large rattan furniture supplier base, with approximately 4,000 producers as estimated by Global Business Guide, giving buyers more options for their price ranges and requirements.

Challenges

Due to lack of funds for R&D, innovation is not as competitive in Indonesia's rattan furniture sector. To address this, organizations including the Association for Advancement of Small Business, the Indonesia Furniture Association and the University of Surabaya have collaborated by providing designers and suppliers the opportunity to attend expos abroad. Through this, suppliers, with the help of designers, can create new and more inventive designs and attract more buyers.

The number of weavers available to the industry is decreasing due to younger generations' lack of interest in the craft. To address this, manufacturers have begun offering more competitive wages and providing training to workers without experience.

This article and its contents are provided by the Hinrich Foundation, a partner of Global Sources in promoting trade across Asia. The products and the suppliers featured in this article are export assistance program beneficiaries of the Hinrich Foundation.