Ministry to intensify absorption of domestic furniture products

To strengthen the domestic market, the government will support furniture and handicraft businesses by intensifying the absorption of domestic furniture products, Minister of Industry Agus Gumiwang Kartasasmita has said. “In the domestic market, the government will intensify the use of domestic products to become a momentum for industry players to improve performance,” he informed at the opening of the 2022 Indonesian Furniture Exhibition at JIExpo Kemayoran here on Thursday.

Business actors have also been asked to pay special attention to the domestic component level (TKDN) certification so that they can sell their products through the e-catalog of the Government Goods/Services Procurement Policy Institute (LKPP).

The government, on its part, will continue to improve services for domestic business actors, especially by freezing imported products that have been substituted for local products in e-catalogs.

The Ministry of Industry will also offer a free domestic component level (TKDN) certification program, especially for small and medium-sized furniture and handicraft industries.

“We will continue to strive so that the TKDN certification process in the future will not only be cheaper, but also faster,” Kartasasmita said.

The Ministry of Industry has also expressed support for the plan of the Indonesian Furniture and Handicraft Industry Association (HIMKI), which will hold exhibitions up to two times a year to capture the potential growth of the industry.

In 2021, the furniture and handicraft industry grew by around 27 percent on an annual basis, with the furniture industry growing 32 percent and the handicraft industry growing 17 percent.

“I am optimistic that government policies that strengthen people’s purchasing power will support increased sales of furniture, especially in the domestic market,” Kartasmita said.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, had earlier emphasized the importance of digital transformation to bolster the development of micro, small, and medium enterprises (MSMEs).

“MSME digitalization would bring benefits, to help in product marketing during the pandemic, facilitate transaction and financial recording using digital payment platform, and increase access to the market as well as business development training,” Hartarto said in a statement issued here on Sunday.

Given the fast pace of development of the digital economy, digital transformation is a must for MSMEs to improve their efficiency and business development, he added.

In a bid to upgrade MSMEs and encourage digital technology adoption among them, the government has taken several initiatives and policies, including the Proud of Made in Indonesia Products (BBI) program.

The program seeks to encourage MSMEs to sell their products through digital media or e-commerce, he noted.

Source: Antara News

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