Aug 29, 2005. /Lesprom Network/. President Susilo Bambang Yudhoyono has promised to re-evaluate the governemnt’s policy on the export of semi-processed rattan and formulate another one of higher cost-benefit to rattan producers, an industry spokesman said. "Because this is very controversial he (the president) will evaluate which policy will be more beneficial: allowing rattan to be exported freely or restricting rattan exports in favour of supply to the sometsic furniture industry," Mr. Soenoto, chairman of the Indonesian Furniture and Handicraft Industry Association (Asmindo), said. Speaking to reporters after a talk with president Yudhoyono on the sidelines of an exhibition of Ciayumajakuning products here, Saturday, Mr. Soenoto said, the president could understand the furniture industry’s problems in marketing its products overseas and therefore the government would adopt a policy that could benefit all parties. The policy of allowing export of semi-processed rattan, he said, was eliminating export markets for the rattan furniture. "As the (furniture) market has disappeared, we will not receive orders anymore which means that we will not need raw material because there is no order," he said. On the government`s plan to help market rattan furniture through its worldwide International Trade Promotion Centre (ITPC), Mr. Soenoto said that would not be enough to regain the orders that had been taken over by competitors from other producing countries. Earlier on the same occasion, trade minister Mari Pangestu said the government had set a quota for semi-processed rattan exports, namely 3,000 tonnes a month, under the condition that the domestic market has abundant raw material. "We realize problems that are being faced by the rattan furniture industry on how to compete, how to get orders, and how to obtain informaiton on market conditions. Therefore, we have devised a comprehensive program to overcome the problems," Ms. Mari said. The comprehensive program would involve the trade ministry, the industry ministry, the cooperative ministry and the banking industry to disburse credits for rattan producers and seek innovation to get orders from foreign buyers. Other problems faced by rattan producers are problems in design, quality, productivity, and capital for small-scale producers. "All these problems have nothing to do with the imposition of the export ban because if we lift the ban, what about (the future) of rattan middleman in Sulawesi and Kalimantan. So we have to handle those problems," she said. Chief of the Indonesian Rattan Producers Society (MPPRI), Mr. Badrudin said rattan is a specific product of Indonesia so it should be used as one potential item to compete in the world market. "If we open the export (of raw material), no matter how much the export quota, foreign competitors will get raw material and reduce orders for Indonesian furniture. This is a strategic commodity that needs to be protected," Mr. Badrudin said. Regarding over production of rattan, Badrudin called on all rattan production centers to establish rattan-made furniture production centers so that the world market would only recognize Indonesian rattan products. "Thus excessive rattan production can be absorbed by domestic industry, and it can create millions of job opportunities," he said. Following the issuance of ministerial decree №12/2005, rattan producers claimed that 68 out of 162 companies, members of Asmindo, had collapsed and 300,000 workers in Cirebon were laid off. Previously, the industry had absorbed some 600,000 workers. Data collected by he Cirebon Trade and Industry office showed rattan furniture exports in 2003 reached a total value of $122.77 million and increased to $135.86 million in 2004.