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Jakarta, July 16, 2024 - Indonesia's handicraft and home décor industry, particularly wood and natural stone products, continues to show promising potential despite global economic and geopolitical challenges. This is reflected in impressive export growth in the first quarter of 2024.
Data from the Central Statistics Agency (BPS), processed by the Economist team of the Indonesian Export Financing Agency (LPEI), shows an increase in export value reaching USD 35.76 million (up 8.15% yoy) during January-March 2024.
This trend indicates an increase in exports driven by rising prices. The cumulative increase in export value is driven by increased exports to several key markets, including Japan (up USD 6.55 million), South Korea (up USD 1.62 million yoy), Germany (up USD 1.15 million yoy), the Netherlands (up USD 670.32 thousand yoy), and Papua New Guinea (up USD 522.09 thousand yoy).
In line with this increase in export value, the Indonesian Export Financing Agency (LPEI) or Indonesia Eximbank continues to strive to enhance the capacity of Indonesian SMEs to compete in the global market, one of which is through the export training program, the Coaching Program for New Exporters (CPNE).
One example is CV Maharani, which specializes in handicrafts and home decor made of wood and natural stone from Bali. CV Maharani has been a partner of LPEI since 2021 and has successfully exported to countries such as the United States, the United Kingdom, Japan, the Netherlands, Germany, and Russia. LPEI provides assistance with the main goal of improving the value and quality of export products and becoming part of the business ecosystem to Go Global.
Moreover, the Business Matching event organized by LPEI in collaboration with the Trade Attaché (Atdag) Ottawa, the Indonesian Trade Promotion Center (ITPC) Vancouver, and the Indonesian Diaspora successfully introduced Maharani Craft to the Canadian export market for the first time in April 2024.
The owner of CV Maharani, Irene Setiawati, stated that the assistance provided by LPEI has greatly helped her business to open wider export markets. "Various services and facilities from LPEI are provided to export-oriented SMEs like us, enabling us to export," said Irene.
CV. Maharani has become a producer and exporter of accessories, silver jewelry with ethnic and contemporary designs, and later expanded into handicrafts and home décor, bringing unique creativity and techniques from Bali. Maharani collaborates with approximately 53 craftsmen from the Gianyar area of Bali. Maharani Craft also participated in the Road to G20 exhibition in Bali in 2022, offering premium uniqueness for crafts that function as home decorations.
In 2023, Indonesia exported the most handicraft/home décor items in the form of Wooden Coasters & Tableware (49.30%); followed by Wooden Kitchen & Tableware (21.58%); and Basic Metal Kitchen/Tableware (16.63%). This demonstrates Indonesia's expertise and capability in wood processing and the diversity of main export products, ranging from small items like coasters to larger and more complex devices.
LPEI's Managing Director of Business Development, Maqin U. Norhadi, said, "In addition to financing, guarantees, and insurance, LPEI supports export-oriented SMEs in developing their businesses through consulting services programs. These consulting services programs provide training, mentoring, and business matching to support export-oriented entrepreneurs in improving product quality and competing in the global market."
LPEI is strongly committed to helping local Indonesian products penetrate international markets. LPEI continues to strive to provide a range of mentoring and training programs specifically designed to support business actors in Indonesia. Through various programs such as the Coaching Program for New Exporters (CPNE), Go Export Village, and Business Matching, LPEI not only provides financial assistance but also equips business actors with the knowledge and skills needed to compete in the global market.
Currently, LPEI is preparing a marketplace designed specifically as an export education platform, information services, incubation, capacity building, and a place for sellers and buyers to meet (business matching). This marketplace is designed to be an integrated ecosystem that facilitates various aspects of export, from product development to marketing and certification.
LPEI's marketplace will help SMEs improve their export performance by utilizing data-driven research information and digital technology in their export decision-making. With access to accurate data and in-depth market analysis, SMEs can formulate more effective and efficient export strategies. The ease and availability of comprehensive services on this marketplace are expected to encourage export-oriented entrepreneurs to Go Global.
He added that this initiative aims to strengthen the competitiveness of Indonesian products on the international stage, enabling them to contribute more significantly to the national economy. LPEI is committed to continuing to support the innovation and capacity development of Indonesian entrepreneurs to adapt and thrive in an increasingly competitive global market.
"With this support, LPEI hopes to encourage more export-oriented entrepreneurs to take bold steps to go global," said Maqin.
Media Liason:
Chesna F. Anwar
Corporate Secretary – Indonesia Eximbank
Ph.: (021) 39503600
Email: corpsec@indonesiaeximbank.go.id
Web: http://www.indonesiaeximbank.go.id
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