The future of the rattan craft industry in Cirebon, West Java, is threatened according to Zaenal Arifin from the Advisory Council of the Indonesian Furniture and Craft Association (HIMKI).
It has been reported that a number of enterprises have had to suspend production and decline orders from overseas buyers because they were unable to secure raw rattan that comes from Kalimantan, Sulawesi and Sumatra.
Rattan furniture is popular in China and with Indonesia being the main source of raw rattan the restrictions on raw rattan exports has worried Chinese rattan enterprises prompting them to consider shifting production to Indonesia.
The Indonesian and Chinese governments have been exploring the feasibility inviting Chinese companies to locate to Indonesia. Cirebon is known as the centre of the rattan furniture industry in Indonesia and would be an obvious place for foreign enterprises to establish production capacity.