wicker world enterprises inc
Furniture industry in Indonesia has boomed since the 1998 Asian crisis. The main reason behind this boom was the weak rupiah, availability of planting Teak abundant and little or no competition from outside. Furniture buyers from around the world have benefited from cheaper prices of teak furniture including a large number large global hypermarkets. The result has been the availability of Indonesian teak furniture in almost all parts of the world. Many companies manufacture small furniture begin to take this teak furniture boom to offer discount furniture to the world market, which benefited everybody at that time. Nobody can deny that the growing number business and employment in the furniture industry has increased dramatically, but as other internal and external factors that have hindered the development of teak furniture from Indonesia.
The teak furniture industry in Indonesia suffers from the scarcity and cost of raw materials. The illegal timber is not available as it used to be a few years ago. What made the furniture for small businesses, which had received earlier with the abundant use of illegally harvested timber very difficult to support and most of them have ceased operation. The price of teak of a viable (Perhutani) has almost tripled over the past 7 to 8 years and was always buyers willing to pay the same or even less. They do not want to raise prices used to buy because they sell their products cheaper in their markets more than 7 years. This situation has forced many small businesses lower quality teak used in their furniture. This has led to the evolution of treated teak furniture on the market. Treaties teak furniture are of very poor quality wood which is then chemically treated to ensure that the furniture was of uniform color.
There was no government initiative to support this industry. Moreover, low investment in machinery and training of small manufacturers made these companies very stagnant. The Most local manufacturers not have neither the knowledge nor the superior marketing will present their products directly to customers offshore. The great foreign trading companies to exploit this situation. They use local manufacturers to produce goods and sell them at high prices in their markets. These foreign companies that exert great pressure on manufacturers premises and require the cheapest price possible. This has resulted in local manufacturers payroll "inferior to their workers, using lower quality raw materials and do everything possible to keep your business profitable. This vicious cycle has a negative effect on all sectors of industry: work, investment, accountability social, quality of products and so on.
Another challenge for the teak furniture industry in Indonesia is competition from countries like Malaysia, Vietnam and China. Malaysia is a major exporter of wood furniture in the world market, even if it lacks the resources of plantations in Indonesia, still very much furniture teak in the world market is exported from Malaysia. It's the fact that illegal timber from Indonesia is still connected to Malaysia. Malaysia, Vietnam and China for the export of teak furniture for his country at cheaper prices than the artisans of Indonesia if these countries have not yet experienced and qualified.
In summary, the furniture industry Indonesian teak has benefited a lot of people in Indonesia and abroad, but now and competitive pressures within and without, delayed in the race industry the bottom.
