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Thursday, April 22, 2010

Emerging Furniture Industry in Indonesia

The furniture industry in Indonesia is one of industry which is fully supported by both local and central government of The Republic of Indonesia. The places where the industry is emerging are Jepara and Bali.

Jepara is a small town located north to Semarang, the capital of Central Java Province. It possesses both competitive and comparative advantages in furniture industry since this town has many skillful craftsmen and supply of raw material including teak, mahogany, and mindi.

Since the exploitation of teak wood, now the emerging product offered by many exporter and manufacturer is furniture made from reclaimed teak. Many say that furniture made from this material called recycled furniture.

Ethics Considered by Local Manufacturers

Unfortunately, many local manufacturers from Jepara often ignore the ethical rules on conducting or running their business. This is somehow a drawback for whole Indonesian labeled exported goods. It somehow can reduce the trust from the overseas buyers. Thus, this problem must be solved otherwise the trends on furniture business will decline significantly.

Challenges

Because of global competition now emerging in this industry, in terms of management science perspective, the local players (Jepara Furniture Manufacturer) should now enhance the efficiency and honors the ethical rules on conducting the furniture business.