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HIMKI 3rd National Conference, Strengthening Organizational Solidarity to Accelerate Industrial Grow
JAKARTA-HIMKI.ID: The 3rd National Conference (Munas) of the Indonesian Furniture and Crafts Industry Association (HIMKI) was held at the Holiday Inn Hotel Jakarta on 29-31 August 2023. The National Conference took the theme: "Strengthening Organizational Solidarity and Integrity to Support Accelerated Growth National Furniture and Crafts Industry”.
At the National Conference, nine formators are selected who will elect a General Chair.
The National Conference is a reminder that this is where HIMKI was born. HIMKI is the result of the merger of two furniture and craft industry organizations, AMKRI and Asmindo. This merger was realized because of President Joko Widodo's strong desire to unite the two associations so that they become a single, strong, large organization that can become a critical government partner to encourage the competitiveness of furniture and craft products in domestic and foreign markets.
According to the Chairman of the HIMKI Presidium, Abdul Sobur, the formation of HIMKI was declared on May 31 2016 in Jakarta, with the inauguration taking place on July 28 2016 at the Jakarta Ministry of Industry Building and approved by President Joko Widodo at the Jakarta State Palace on the same date.
Build optimism
Currently, said Sobur, world economic conditions have not yet recovered due to geopolitical conditions, however, demand for furniture and handicraft products is still growing with the main supplier China currently leading as the world's largest exporter of furniture products.
In the first quarter of 2023, exports of furniture and crafts decreased by around 6 percent. We hope that the IFEX exhibition held in March can halt the decline in exports in the next quarter. For this reason, the role of HIMKI is very important.
Thus, in fact the global market opportunity for furniture and handicraft products is still open due to the rampant development which is projected to create quite large demand for national furniture and handicraft products.
He added that the US and European markets are the largest markets for national furniture and craft products. Nevertheless, we must continue to strive to penetrate new markets, especially if we pay attention to the increasingly declining demand in traditional markets (the US and Europe), where both regions are experiencing very large inflation. For this reason, in anticipation that if the situation gets worse, we must utilize and optimize emerging markets, such as the Middle East, India and other Asian markets.
HIMKI-Government Synergy
In his remarks, the Minister of Industry, Agus Gumiwang Kartasasmitha, emphasized that HIMKI, as an association for the furniture and craft industry, continues to synergize with the government and other associations in achieving export value targets and efforts to meet domestic needs for furniture and craft products.
Increasing the added value of forest products through downstreaming is a necessity in order to open more jobs, increase exports, generate foreign exchange, increase state income and boost economic growth. In the text of his speech on August 16 2023, the President stated that the downstreaming we want to do is downstreaming that carries out technology transfer, that utilizes new and renewable energy sources, and minimizes environmental impacts.
"The industrial downstream policy is mandated in Law Number 3 of 2014 concerning Industry, intended to obtain added value to raw material products, strengthen industrial structures, provide employment opportunities, provide business opportunities, and reduce the value of imports. "The development of the downstream forestry industry is also supported by the policy of banning the export of round wood and raw rattan," said the Minister of Industry.
Agus explained that the agro-industrial sector plays an important role in the national economy. In 2022 it will contribute 50.3% to non-oil and gas GDP. The furniture industry as a sub-sector of the agro industry contributed 1.3% with a performance value reaching US$2.5 billion. In 2023, until June, the export value of furniture and crafts will reach US$1.1 billion.
Based on Fortune Business Insights data, the global furniture market value in 2022 was recorded at US$517 billion, of which around 50% is the Asia Pacific market, namely US$247 billion. In 2023, it is hoped that the value of the global furniture market will increase to around US$541 billion. Based on the type of raw material, 63% of the furniture market is still dominated by furniture made from wood.
Several things that will influence the furniture market now and in the future are: (1) Increasing online shopping trends; (2) use of industry 4.0 based technology; (3) Increasing demand for environmentally friendly furniture; and (4) The increasing need for functional, ergonomic and customized furniture, especially for the millennial generation and Gen Z.
In order to control the market and respond to furniture industry trends, a strategy has been developed that focuses on 3 (three) things, namely: (1) Strengthening product promotion media; (2) Increasing production of environmentally friendly furniture; and (3) Strengthening furniture market reference research. Due to the fact that the traditional export market has not improved due to the global economic recession, we should continue to make efforts to divert to the domestic market and expand export destinations to non-traditional markets.
In order to ensure the availability and stability of the supply of raw materials, improvement efforts are being made that focus on providing better access so as to achieve an ideal supply chain pattern for furniture raw materials through facilitation of the Furniture Industry Raw Material Logistics Center and coordination with related Ministries/Institutions.
Regarding support for providing skilled labor in the furniture industry, the Ministry of Industry established the Furniture and Wood Processing Polytechnic in Kendal. The curriculum at the Ministry of Industry's polytechnics is dynamic, adapted to market needs. At the HIMKI National Conference, an MoU on cooperation between HIMKI and Kendal Polytechnic was signed.
Apart from continuing to increase the export market, it is also hoped that furniture industry players will not abandon the domestic market. With more efficient production innovations, domestic consumers will also be able to enjoy quality furniture products made by the nation's children.
Then, the increasing environmental awareness of furniture consumers is expected to encourage industry players to continue to make improvements in production so that it can be more efficient, sourced from sustainable raw materials, environmentally friendly, implementing a circular economy, playing a role in reducing greenhouse gas emissions, but still being able to produce eco-design based products.
Finally, Minister Agus Gumiwang wished all HIMKI elements a happy National Conference. Hopefully the entire National Conference agenda can run smoothly and provide benefits for the development of the national furniture and crafts industry. MSJ
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