No. April 201337Visit our new website: www.woodmag.co.id

communication and educational media

No.37 A

pril 2013

Vincent Cantaert,Director PT. Mamagreen Pacific Indonesia:

PRODUCT & TECHNOLOGY: Preventing End Checking in Hardwood Logs & Lumber

BIZ NEWS:The EU Timber Regulation putting it into practice

Indonesia Woodworking Magazine

Promoting French Lumber and Wood Products6, rue Franois 1er - 75008 Paris - FranceTl. : +33 (0)1 56 69 35 92 Fax : +33 (0)1 42 56 32 70E-mail : contact@frenchtimber.com

www.FrenchTimber.com

French beech wood is the natural answer when it comesto furniture and staircase manufacturing.

Available in large stock volumes and PEFC certified,Beech is easy to process, bend and stain, and is an

ideal solution to creating custom products.From veneers to lumber, edge glued panels tobended plywood, beech always has thesustainable solution to fit your projects.

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WHITE OAK BEECH MAPLE/SYCAMORE ASH WALNUT EUROPEAN CHERRY SPRUCE/FIR DOUGLAS PINE

French beech,the first step to success

annonces escalier A4_Mise en page 1 26/07/12 16:02 Page1

Contentof WOODMAG 37

BIZ FORUMFrance, No.1 in Europe for Heat-Treated & Naturally Ourable Hardwoods 6Changing Supply Chains 10American Hardwood Lumber Shipments to Southeast Asia up 32% in 2012 12

FURNITURE INSIGHTJepara Furniture, Not Just a Creativity Problem 14

SPECIAL REPORTMIFF 2013: Bigger and Becomes an Attractive Magnet 20

PROFILETrust & Commitment 26If The Market Does Not Exist, Create It! 32

EVENTHand of Japara 40Held for the First Time Modeks 2013 Fair, made a quick introduc-

tion to the sector and was visited by 31 827 People! 62

BIZ NEWSPEFC Continues Expansion in the Tropics 44The EU Timber Regulation putting it into practice 46Leaders of the global wood industry to gather in Dubai April 9th to 11th 49AFIC Meetings 50NHLA Convention 2013 50Emporium Hardwoods Rossi Group 51Indonesia WoodShow 2013Promising start for wood working and wood machinery exhibition in Indonesia. 52

Free SVLK Clinic Invigorates IFFINA 2013 Event 54AMKRI meet FENA 55

BIZ PROFILEWith Integrated Facility and Brand Seize The World Market 56

EKAMANT SOLUTIONIntroduction of Cloth Emery Backing 58

EKAMANT NEWSPT Integra Indocabinet & CV. Shaba 60PT. Interkraft, PT. Katwara & PT. Romi Violeta 61

CALENDAR OF EVENTS 64

36 BIZ PROFILE:Vincent Cantaert,Director PT Mamagreen Pacific Indonesia

Made with Love in Indonesia

PRODUCT & TECHNOLOGY:Preventing End Checking in Hardwood Logs & Lumber

18

BIZ NEWS:The EU Timber Regulation

putting it into practice

46

2

Decorative Wood PanelsVeneer & Plywood

PT. ABADI INDORONAIntercon Plaza Blok E 8-9, Taman Kebon Jeruk

Jl. Meruya Ilir Kel.Srengseng Kec Kembangan, Jakarta 11630Phone: 021-5857433 / 5851973 / 5306612 / 5845500 / 5845539

Fax: 021-5872904

www.veneerabadi.comwww.veneerindonesia.com

Veneera unique, beauty part of wood

OHIO TABLEBy Millenia Furniture & Interior

Veneer: Santos Palisander

Happy Chinese New Year to readers who celebrate it. WoodMag thirty-seventh edi-tion does appear to be differ-ent this time. What makes it different is the cover a more varied and more dar-ing. This time PT Mamagreen Pacific located in Semarang became the cover story in this issue. The Belgian company earlier this year, introducing a new tag line in the logo is Made with love in In-donesia. An admirable courage for rais-ing Indonesia as a distinct added value in international marketing.

Consider special report Malaysian International Furniture Fair (MIFF) 2013. The exhibition, which was held for the nineteenth time, getting larger and becoming a magnet for international buyers. MIFF strength relies on office furniture and raw material of the panel has made it a benchmark in the interna-tional industrial and business furniture. You can imagine if the five-day exhibi-tion will be flooded with about 20000 buyers, with about 7000 an internation-al buyer

Read profiles Holy PT Karya Prima commanded Martinus Bualit capable reap success in times of downturn still gripping world markets. Similarly, the experience of Erik Ismargono from Erik Furniture Manufacturing of tricks in a target market that is able to spare him from the crush of the global market downturn.

In this edition, Ekamant Solution featuring discussion of fabric backings sandpaper backing fabric. This type of sandpaper intended for sanding ap-plications that can not be obtained by using sandpaper with paper backing. Sandpaper type is not only necessary to heavy duty work, but also sanding sand-ing require high flexibility as the profiles and carvings

See also Norman E. posts Murray fo-cused on preventing cracks in the logs and timber. Cracks caused by drying are

too fast at the end of the wood causing shrinkage and bring division or rift. To prevent it necessary to use a waterproof coating that protects the end of the logs or lumber from these risks. Follow his re-view in detail in section P & T.

Read also what and how the sys-tem verification for Legal Timber (SVLK). The system is a response to pressure from various countries of the European Union, the United States, Japan and Asutralia; according to Vice Minister of Commerce Krisnamurthi system is really typical of Indonesia. For wood and tropi-cal forests, SVLK is an advanced system and the only one in the world today. Indeed, the system is still not in the ap-plication, but it is important as he said the government and the private sector should Indonesia go hand-in-hand in securing a trip this system especially in the European Union. Follow his review in Biznews this time.

Consider also how the persistence of the Association of Indonesian Furni-ture Designers in revitalizing carvings of Jepara as the heritage and culture of this country. The set has held a work-shop hands of Jepara earlier this year deserves thumbs up. Sponsored by the American Hardwood Export Council (AHEC), HDMI is expected to revitalize and redefine Jepara carving culture be-gan to recede as abandoned by young people in this city.

Managing DirectorJodi H. Susanto

eDitor in chief Arief Odon ariefodon@woodmag.co.id

eDitor Emir Wiraatmadja emir.wiraatmadja@woodmag.co.id

technical eDitor Tandiono tandiono@woodmag.co.id

circulationDewi Rubianedewirubiane@woodmag.co.id

contributor Michael BuckleyMichael Hermens

graPhic DeSignZevanya Audreyzevanya@woodmag.co.id

PubliSh by Pose Media Indokreasi, for PT. Ekamant Indonesia

alaMat reDakSi Puri Cinere Blok C3 No. 8 Depok 16513 - Indonesia

EditorialNote

Editor in chief

Arief Odon

4

Editorial

Preserving wood through heat-treatment. This is not a new concept. The process is as old as history itself, having proved its worth over thousands of years. Yet nowadays, heat-trea- ted wood - also known as thermally modified wood - is far from being a craft or small-scale product. Manufac-ture has become an industrial process, using highly-developed, modern technology (see panel 1). This is particularly the case in France, where heat-treated wood products are actively devel-oped to meet a growing market demand.

The rich and diverse forests of France are filled with natural- ly-durable resources. Like the black locust (false acacia) or the

white oak, for example, both with a natural risk level of 4Used as cladding, heat-treated oak turns a caramel colour.without any chemical treatment or other additives. This

means that wood from these two species can be used in situa-tions of extreme humidity (see panel 2).

Until now, where other French species needed to be used in frequently damp areas (such as patios, cladding, outdoor devel-opments, play areas, garden furniture, etc.), chemical treatment of the wood by autoclave was required. Now, heat treatment of wood offers an environmentally friendly alter- native to chemi-cal products made from metallic salts (such as chrome or copper).

THE ADVANTAGES OF HEAT- TREATED WOOD

Gilles Negrie knows a lot about thermally modified wood. He is one of the experts at the FCBA, the largest French wood research institute, and he explains that the heat treatment of wood results in a new material. Some constituent elements like hemicelluloses decompose, lignin molecules are fused together, and the crystal-line structure of the cellulose is altered...

How do these transformations affect the properties of the wood? The changes are universally acknowledged to be positive. The decay of the hemicelluloses reduces the hydro- philic proper-ties of the wood, making it less likely to change shape and more durable as a result. In this way, heat-treated wood becomes more resistant to attack from fungi and other microorganisms. Insects are less attracted to the wood, as the heating process has consid-erably reduced its constituent odo- rants (terpenes).

Researchers have also pointed out that the formation of che- mical bonds through the cross-linking of lignins leads to a hardening of the material. Other advantages that favour the use of heat-treated wood include reinforced impermeability, even co-louring of the mass throughout, improved thermal insulation, ex-traction of resins, fixation of tannins, etc. And heat-treated wood is environmentally friendly, there are no chemicals involved in

production and waste can be recycled.

A WIDE AND VARIED RANGE OF

HEAT- TREATED WOOD ON OFFER

Users are clear about the advantages of heat-treated wood. In France and across Europe, demand is constantly increasing. We have been developing ther- mosta-bilised products for four years, and in the past two years there has been a real surge in the market: sales are increasing every year, confirms Mathieu Blanc, sales direc-tor for Sivalbp.

France is in an ideal position to meet this demand. French producers manufac-ture 25,000m3 of heat-trea- ted wood an-nually. Within a European market that only offers softwoods, France differs by offer-ing a majority of heat-treated hardwoods, making it the leader in this market sector.

Our range is large and varied, says Louis Naudot, manager of Dumoulin Bois, a company that has been producing a large selection of heat-treated woods for frames, woodwork, decking, cladding, posts, etc. from different sources (includ-ing oak, beech, ash, poplar and chestnut), for a number of years now. Each species has its own characteristics; the aim is to of-fer a very wide variety of thermally modi-fied woods to suit the greatest number of requirements.

Heat-treated wood is also making waves in the world of furniture and interior design. It has become fashionable among French and European designers. Why? Because these designers, closely linked to the world of high fashion, appreciate a new material that offers a wide palette of colours, from grey to chocolate accord-ing to the treatment temperature. As with fashion design, novelty sells. This is why the designers collections now increasing-ly feature furniture made from ash, along with the classics like oak and beech.

France, No.1 in Europefor Heat-Treated & Naturally Ourable Hardwoods

France is the European leader in heat-treated hard- woods. These new products have numer-

ous advantages. French producers are now offering a rich and varied range of products for

export. An accompanying range in naturally-durable wood is also available.

Sebastien Deschamps is a leading French specialist in heat-treated wood. He is the direc- tor of Bois Durable de Bourgogne (Burgundy Sustainable Wood), a com-pany with three ovens for the thermal modification of wood. In our company, we use a heating system called Thermo-process. This technique from Finland, with the trademark ThermoWood, takes place in four distinct phases, with treat-ment lasting between 30 and 60 hours. In order to dry planks to 0% humidity, they first have to be subjected to a rapid in-crease in temperature, explains the tech-nician. Thermal treatment of the wood then takes place during the second phase, with the air temperature reaching 220C in the oven, over two hours.

This is where the internal modifica-tion of the wood takes place. The temper-ature is then dropped, by a cooling pro-cess using water vapour and monitoring of temperatures right to the heart of the wood in order to avoid splitting. The last

phase adjusts the final humi- dity of the wood using rehumidification, bringing the planks to a humidity level of 5%. We use Jartek ovens from Finland, each with a capacity of 20m3, and at no point do we use any chemical products. Sebastien De-schamps adds that Bois Durable de Bour-gogne allocates a class risk category of 3 to seven different products: ash, beech, poplar, oak and Douglas-fir with or with-out sapwood. Other species (spruce, pine) com- plete the companys range of clad-ding, decking, garden furniture, flooring and layouts... We are currently employing a scientist in order to obtain the certifica-tion to sell our pro- ducts as class 4, for exterior products constantly exposed to humidity, confirms the tech- nical man-ager. The Federation Nationale du Bois (French national wood federation) has asked the FCBA for an assessment in or-der to certify oak, beech, ash, poplar and chest- nut cladding and decking as class 4.

THERMAL TREATMENT OF WOOD: A PROVEN TECHNOLOGY

Biz Forum

6 7

HEAT-TREATED POP-LAR, A CERTIFIED

AND HARD-WEARING FRENCH WOOD

What do end users think of heat-treated woods? Rene Bruger is one of them. He runs a company called Jardimat in eastern France, specialised in gates and enclo-sures. He had been looking to expand his range of wooden doors with a new hard-wood that would be easy to work with and affordable. In the end it was an outsider that got the job, a species that doesnt re-ally spring to mind for outdoor use: poplar.

According to Rene Bruger, poplar is ideal. This little-known wood needs to be rediscovered, he declares. He says it is an aesthetic species, with a smooth grain, plea- sant to the touch. When heated, it becomes stable and durable, resis- tant to external forces, particularly humidity, he says with satisfac- tion. After a variety of machining processes in the Jardimat work- shops, these gates are protected with a WoodguardTM finish, free of solvents and chemicals and gua- ranteeing enhanced protection (against water, UV, ageing, and various external agents, for example).

The Ducerf group is one of the lea- ding manufacturers and distribu- tors of hardwoods in France. Their Profiled Wood unit is one of the largest users of heat-treated wood in France. Heat-treated woods are being used in an increasingly diver- se range of situations including in-doors, with the jointed glue-lami- nated panels and solid laminated panels that we produce. Julien Guenard, the companys quality manager, adds that Ducerf markets decking boards and cladding with specific machining profiles, accor- ding to their customers needs. FrenchTimber

The black locust (or false acacia) and the oak are the two most naturally-durable French hardwoods. They are classi- fied at a risk level of 4 without the end user having to che- mically treat or heat the wood. According to French stan- dard NF EN 335-2, woods in risk class 4 can be constantly exposed to a humidity level above 20%. We offer decking in French-sourced natural oak, planks of wood without sapwood that can be used for outdoor developments, play areas, seafront promenades, plat-form edges, etc. Eric Julien, chief execu-tive of Eurochene, confirms that it can also be used for the more conventional applications of patios and cladding.

The finished thickness of decking generally ranges from 22mm to 48mm of lengths between 1m and 4m, with three finished widths (100mm, 130mm and 170mm). Other dimensions can be ordered in a wide range of pro- files and finishes (grooved, smooth, asymmetri-cal, mortise and tenon, etc.). Acacia is making important inroads into Europe-an markets. With a reputation for being even more resistant than oak, the wood can easily last for over 30 years in con-tact with soil and water. We mostly sell it for patios, swimming pool decking, outdoor cladding...,

Aside from ecological benefits, these natural oak and aca- cia products are sold at competitive rates, as they

A NATURALLY HARD-WEARING RANGE OF FRENCH OAK AND ACACIA

are not subject to treatment or heating costs. Sourced from sustai- nably managed forests, these two French species also benefit from PEFC-certified traceability.

8

Another year has passed and most Asian manufacturers and suppli-ers alike had (yet again) a difficult 12 months facing reduced bot-tom lines. Overseas suppliers had to cope with the usual log and domestic transport increases whereas Asian customers en-countered drastically increased minimum labour wages (up to 44% in Jakarta, Indo-nesia). And all of them had to endure the ever increasing sea-freight costs. The prob-lem remains that none of these groups are unable to obtain better selling prices of their products due to weak demand of fin-ished products abroad. The exports to the USA seem to improve but the exports to Europe continue to weaken.

The EUTR which will be implemented March this year and many European im-porters are demanding that Asian manu-facturers offer certified products in the hope to comply with the EUTR. There seems to be an upwards trend for PEFC certified products but FSC is still strongly preferred. Regretfully we, as suppliers of imported raw materials to Asia, face a shortage of FSC certified hardwood logs, sawn timber and veneers despite the good demand in Asia. Most of the West Euro-pean sawmills are PEFC certified and only limited suppliers in Eastern Europe can offer FSC certified timber. About 20% of our sales to Asia are North American hard-woods yet very few mills are FSC certified. Those who are have mostly FSC CW (Con-

trolled Wood) whereas our customers re-quire FSC 100% or at least FSC Mix Credit.

The most common reason for such short supply given by our North American suppliers is a lack of FSC certified logs. So you will understand my surprise when our Chinese veneer partner announced in October last year that starting this January they would be able to supply FSC 100% certified American white oak veneer. Our partner, Shanghai OpenSea Woodworks Co., Ltd., went last November to the USA and bought 50 containers of white oak logs and intends to import a total of 300 containers this year.

So what happened with the so called shortage of FSC logs from the USA? Why is this Chinese supplier able to have ac-cess to so many FSC certified logs and the American sawmills are not? To be honest I have no clue and our regular American suppliers are unable to give any reason-able answers either.

Another advantage with this new supply chain from China is that they are willing to slice those veneers specifically requested by our South East Asian cus-tomers. For example they will slice not just the standard 0.5mm veneer but will slice up to even thicknesses up to 2mm which is in good demand by the engineered door manufacturers. Furthermore they are will-ing to grade a much wider range of grades based on individual customer grades. The price will not be cheaper than the USA but

the ability to supply what our customers requires is the biggest advantage. Other advantages are that we can invite custom-ers to come to the factory in China and the sailing time is much shorter than ship-ments from the USA.

Shanghai OpenSea Woodworks Co., Ltd. is a relative newcomer in the veneer world. The owner started as trader in 2006 and focused solely on Chinese and Russian veneer species such as ash, birch, maple, etc . But mid last year he took a big step and partnered with the owners of the ve-neer factory previously operating under the name Chinusa. The factory is located in Zhejiang outside Shanghai and has modern equipment such as three vertical slicers (brand Capital), one rift cut slicer and three drying lines (Cremona and Capi-tal).

The above makes me wonder why, in this case American suppliers are not ca-pable or willing to change their product range and adapt to the Asian customers demands? They have the resources in their backyard and have much more experience in the production process so where does it go wrong? It seems they have lost the in-terest to keep upgrading despite the fact that Asia will continue to grow as export market for their products. I guess at the end it all boils do to the bottom line and for example our Chinese partner is more creative in keeping his costs down and achieve a healthy bottom line.

Changing Supply

Chains by Michael Hermens

White oak logs FSC

Biz Forum

10 11

Commenting on the results John Chan, AHECs Director in Hong Kong, said Exports of American hardwood to Greater China and SE Asia in 2012 have reached an all-time high record while the world is still facing econom-ic downturn and uncertainty. The growth in exports of US hardwood is driven by regional economic growth and the domestic con-sumption markets.

The SE Asia market for US hardwood has outperformed other developed mar-kets in 2012 with 24.4% increase in total value of all American hardwood products - lumber, logs, veneer, plywood, flooring, dimensions and moulding. US hardwood lumber exports reached US$195.38 mill, growing in value by 32% compared to 2011. Thus sawn lumber is growing more rapidly than the other products. Logs ac-

counted for US$59.76 mill, up 9%. Veneer accounted for US$16.11 mill, up 9%. The veneer industry in China and SEA has been growing rapidly in the past 5 years in par-allel to the fast growing veneer slicing and fancy plywood industry to support the de-mand of furniture industries in the region.

Leading the ASEAN imports of Ameri-can hardwood lumber in 2012 was Viet-nam where shipments of sawn lumber amounted to US$130.93 mill, an increase of 32%. Volume to Vietnam totalled 323,880 M3, an increase of 25% making it the largest importer of American hard-wood in the ASEAN, since 2005. This can be attributed to expansion of the furni-ture and flooring and door industries and the capture of overseas exports as well as a growing demand for internal joinery in the residential and hospitality sectors.

Hardwood log shipments from the USA to Vietnam were up 12% by volume and amounted to US$40.3 mill, increasing by 8% from 2011, a further indication of the veneer production industry which is grad-ually developing.

Thailand jumped to become the sec-ond largest market in SE Asia for American hardwood lumber with exports reaching US$21.22 mill an increase of 65%, and volume totalling 45,750 M3 up 62%. The furniture manufacturing industry has re-covered from the damage of the massive flooding in 2011 which seriously impacted the production and affected the export of US hardwood to Thailand. However In-donesia is still the second largest ASEAN market overall for US hardwood products - valued US$ 34.80 million. Sawn lumber was valued US$20.53 million up 14% from 2011, and the volume registered 40,771 M3, an increase of 23% from 2011. Veneer imports increased by 27% reaching US$7.2 mill. With log imports from USA of only US$6.04 million dropping by 26% it seems that many producers in Indonesia are turn-ing to lumber and veneer as raw mate-rial rather than logs. The property market there is booming and is driving demand for wood products such as doors.

Malaysia followed Indonesia and Thai-land becoming the fourth largest market

Biz Forum

Data just released by the USA show that American hardwood lumber shipments to Southeast Asia were up by 32% in value and 29% in volume for the year 2012 compared to 2011. Log

shipments were up 9% and 15% respectively and veneer in-creased 9% and 13%. American hardwood flooring was up

143% in value and 124% in volume, albeit from a lower base.

in ASEAN for US lumber with shipments valued at US$19.4 mill, an increase of 33% from 2011, and volume totalling 38,084 M3 up 50%. Despite being rich in rubberwood resources these three countries are gradually turning to increase their supplies of im-ported timber which partially accounts for increased of import of US hardwood lumber, veneer and logs. The relatively small mar-ket of Singapore has shown growth of 34% in value and 60% in volume. With the Philippines the two markets were US$6.63 mill of US hardwood products in 2012.

The hardwood forests of the USA are dominated by Red and White Oak with Tulipwood as the next most common species one which naturally regenerates with prolific seed production. American White Oak and Tulipwood are the most popular species in SE Asia accounting for over 50% of shipments in 2012, whereas in China Red Oak dominated shipments there. However a wide range of other species such as Ash, Cherry, Hickory, Maple, West-ern Red Alder and Walnut were are also shipped to Asia.

2010 2011 2012 % %Product UOM Value Qty Value Qty Value Qty Change Change

Southeast Asia

Hardwood Lumber

M3 151,290,758 333,249.0 147,866,930 350,347.0 195,381,191 452,940.0 32 29

Southeast Asia

Hardwood Logs

M3 62,639,244 144,648.0 54,973,931 135,875.0 59,758,728 155,928.0 9 15

Southeast Asia

Hardwood Veneers

M2 12,275,616 9,637,723.0 14,838,183 10,941,275.0 16,113,273 12,322,816.0 9 13

Southeast Asia

Hardwood Flooring

M2 1,049,373 31,075.0 675,925 20,558.0 1,640,311 46,119.0 143 124

Source: United States Department of Agriculture 2013

Hardwood Product Exports Value & Volume 2010 to 2012

American Tulipwood sawn lumber a key species in ASEAN

American Hardwood Lumber Shipments to Southeast Asia

up 32% in 2012

PEFC:YOUR SOURCE FOR CERTIFIED TIMBER

PEFC - Programme for the Endorsement for Forest Certification

More and more customers are requiring timber and timber products to be certified. PEFC, the worlds largest forest certification system, offers you the largest supply of certified material.

Get PEFC-certified to source and sell certified, sustainable material.

www.pefc.org/getcertified

Woodmag_210x147mm_PEFC.indd 1 12/01/2012 18:31

by Michael Buckley

12

Indonesia Jepara furniture is the iconic product. If the world calls the furniture they mean Jepara furniture. So also in Indonesia, almost all are proud that in his area there Jepara furniture products, whether in the form of a chair, sofa, buf-fets, cabinets and so on. Jepara furniture products made social status homeowners up umpteen degrees, as it is considered to have excellent taste on furniture.

The glory Jepara furniture products not now alone. When the Dutch still ruled Indonesia, Jepara furniture products have filled the residence of the Dutch and local authorities in various regions in Indonesia. Phinisi boats are the main means of trans-portation are widely touted as a medium for the spread of Jepara furniture products to all major cities in Indonesia.

Abroad does not quite sound, but the Dutch trading ships, Portuguese, Spanish and English, that stopped in the port of Jepara-the time it becomes a docking and rehabilitation foreign vessels damaged-bound will also carry some products from

Jepara furniture as cargo.I still remember the story of my par-

ents, how it got to the Jepara furniture everywhere, said M. Zakir (44), one local businessman Jepara furniture. If its furni-ture word for bloom, I am not surprised, its just repeating a long history, said Zakir.

Sahuri, local furniture Jepara other en-trepreneurs, concurred. Jepara Furniture has been long known and greatly admired people in various regions in Indonesia. If they mention furniture, what comes to mind in the head definitely Jepara furni-ture. It makes me proud to be Jepara and that is what pushed me into vocational schools (SMK) in Jepara special timber, he said.

Brands, really solid that-according Sa-huri, should be preserved, and not allowed to sink as it is now.

Sink?True. Since the economic crisis hit Eu-

rope and the United States in mid-decade of the 2000s, business conditions Jepara

furniture that recently more aggressive abroad began sinking. As a result of falling demand for many manufacturers to stop production, reduce labor, rent, sell or re-function factory or warehouse.

According to the Head of the De-partment of Industry and Trade Jepara Purwanto Setijo Utomo, Jepara furniture export value in 2012 was U.S. $ 118.65 mil-lion, up slightly by $ 1.46 million from the previous year (Kontan, 8-14 October 2012, page.14) which is valued at U.S. $ 117, 19.

It sounds exciting, but actually is not, the problem is in the period 1999 - 2000 according to records Asmindo (Associa-tion of Indonesian Furniture) Jepara, Jepa-ra furniture export value had reached U.S. $ 201.42 million a year.

Market expansion to countries non-traditional exports such as India, China, Middle East, Africa and the local market which has not worked a contributor to the percentage increase in exports this year Jepara furniture products. Thats because manufacturers no longer willing to wait

for the recovery of the U.S. and European markets. New markets have opened and found, that need to be created. Word for re-bloom. Traditional markets began to be abandoned, waiting for a miracle.

Sahuri express grief with business con-ditions in Jepara furniture today. Because of the collapse of the European and Amer-ican markets, many of my friends who stopped a sculptor or furniture producers, including those in the Karangl Gundang and Bondo, Monggo district, the usual supply of furniture for export to Europe, he said.

On average they move to another area because of being chased by debt collec-tors, whether from banks, brokers and colleagues. Life is very uncomfortable pursued the debt at any time, said Sahuri describe the fate of his friends and himself. Consequently Jepara carver-sculptor be-gan losing reliable, because the average entrepreneur is also a potential carvers.

There was also a success as an entre-preneur in other areas of the furniture, but they are no longer running, just as work-ers, same as here, we become cheap labor in factories that still remain, said Sahuri.

Sahuri itself is venturing into various areas, such as Lampung and Kalimantan, seeking opportunities remaining. In Bor-neo he sank all. There are places where the wood were large and numerous, but because he refused to pay for the estab-lishment of factories or warehouses, tim-ber was left alone lying useless and even-tually burned.

Crazy! And as much wood as good as it will inevitably result in hundreds of bil-lions in Jepara, but they do not think thats

in there and can not imagine the benefits, but Ive give you an idea, they are quite up warehouses and complete equipment, I would take power from Jepara carving, but they do not want, do what I want? he lamented.

M. Zakir said the same thing. My friends and my colleagues are moving to another area, took another job. There are so artisan meatballs, whereas before han-dling the export of up to billions of dollars, he said. But what can we, in the business itself can not anymore. At the same fight every day collecting the debt, said Zakir concerned.

Potential Still Very Large

Although raw material prices continue to rise, especially from the legal identity or PN Perhutani teak plantations of non-forest communities, Sahuri see, there is no problem with the wood. We can make anything from wood furniture, besides the local market is not as meticulous European or American markets, he said. The proof requests from various areas continues to rise.

M. Zakir said yes. Furniture made with 2nd grade wood and the quality is also number two, but buyers in various areas have been very satisfied with the quality, he said. Demand is still a lot, from Suma-tra, Kalimantan, Sulawesi to Papua, check it out now how busy in Krapyak area, he added.

H. Achmad Mulyono, a local business-man Jepara furniture Sekuro Village, Dis-trict Monggo agree. I also became inter-ested in the word for furniture, so I sold

asset, I will jump again to the word for business furniture, export stop it first, he said. Mulyono also did not question the raw material. Buyers do not care, theyve convinced just furniture from Jepara defi-nitely of good wood, so we can use any wood, teak, mahogany, acacia, rambutan, mango, jackfruit, durian, rubber, whatever it is, the origin of the carvers handled Je-para is the one quality assurance, he said confidently.

Timber called Mulyono still abound around Jepara. Every day hundreds of Je-para wood log truck every day. Wood mar-ket, place the wood distock merchants, throughout Jepara district, full of logs, even wood logs of Sulawesi.

Here the wood comes from a variety of regions, Lampung, West Java, Central Java, East Java, Kalimantan, Sulawesi; Je-para never have wood stock shortages, said Sutrisno, timber merchants mulyo-harjo region. The rise of the local market now makes Sutrisno ever broke back alive.

If it continues like this, I believe, the furniture craftsmen and businessmen who had fled to the outside Jepara gradually re-turned, because there is hope, said Sahuri that would still dreaming of the export market.

Chamdan, local businessman Jepara furniture were also convinced by the potential of Jepara furniture. My client mostly officials from different regions, such from Banda Aceh, Medan, Pekanba-ru, Padang, Jambi, Palembang, Lampung, Jakarta, Bandung, Semarang, Yogyakarta. They Jepara furniture fanatics, until now still they call me, but I have 4 year vacuum. Jepara furniture has the impression that well, the image can not be resisted by the local furniture products, he said.

Not Enough Just Creativity

Asked about the creativity of crafts-men Jepara, Sahuri said there was no problem, because the expertise was al-ready attached to them. There is no prob-lem, because the engraving as a deliberate intelligence given by God to the people of Jepara, he said.

M. Zakir and Mulyono argue the same. The problem is not a craftsman labor or raw materials, but buyer. If there buyernya and continuous, Jepara furniture will live again as it once was, said Mulyono sure.

Although the local market is not as favorable outside market, if order and pay-ment smoothly, I believe my friends will be

Not Just a Creativity Problem

Jepara Furniture,

Furniture Insight

By East Heritage

14 15

back to Jepara, production and business again, said M. Zakir.

Besides the obvious order, continuous and smooth payment, all three original Je-para furniture businessman said the issue rates, and competitors are financial con-straints can also turn off again in Jepara furniture business.

Sahuri believes freight rates to the des-tination area is still too high. It is difficult to set a price, transportation costs make the price is still expensive furniture. Be-cause the businesses are forced to change the construction of furniture, so knock down. Practical and cheaper cost of trans-port, but very disturbing strength and du-rability of furniture in the end, he said.

Financial support from the bank will still be required, but the conditions have to be changed. So far, the bank wrote to play safe, no risk factors included in the loan scheme, they also ignore the coach-ing business, so they were like mere mon-eylenders, who only seek profit for them-selves, rather than to help entrepreneurs like us, on the contrary we are helping them , we just finished objects for their ef-forts, not trained partners, said Mulyono.

M Zakir minded. As long as banks are still like that, I fear that employers still not helped, he said. As long as they only look at entrepreneurs as prey to seize his pos-sessions, during which the bank would not be useful for businessmen and craftsmen Jepara furniture, he added.

All three argued the bank should not just approve the loan, and then wash their hands and no longer the same care cus-tomers. Banks also need to provide guid-ance and assisted in the financial manage-ment issues that customers can utilize the loan to the maximum. If there is a problem of bad loans, to be seen how the problem and provide a solution that makes sense. Do not just act like a vampire by applying compound interest is very cut-throat, said their tune. Thats the style of loan sharks, what this bank loan sharks? Sue them.

Furthermore, they see no problem with a competitor. Because of familiar-ity with the terrain, we will always lose employer of businessmen from outside Jepara. They know the area, they have a network, they have long roots, said Sa-huri. According Sahuri during this play is not a word for entrepreneur in Jepara, but entrepreneurs from outside Jepara.

Most of the local post purposes, such as Aceh, Medan, Pekanbaru, Padang, Palembang, Jambi, Lampung, West Java, Jakarta, non Jepara Central Java, East Java,

Bali, Lombok, NTB, NTT, Kalimantan, Su-lawesi, Papua and even, they even bring craftsmen Jepara there for finishing pro-cesses in showrooms they build, he said.

If there is no breakthrough, it hap-pened to be the same as what we expe-rienced with buyers from overseas, they master the marketing network, they know the ins and outs of the area, they have a longer relationship, and they have the language, this is not an easy problem, he said again.

Mulyono confirmed. There must be a solution that quickly and clearly so that employers can exist and survive Jepara at the destination, he said.

What about the government? All three shook their head quickly. We never ass-sisted by the government in business, there we continue treat as official cashcow , said M. Zakir. Sahuri added, The govern-ment should help entrepreneurs Jepara furniture, for example in finding a local market or provide adequate training in how to deal with the challenges of the lo-cal market, instead of just released and its quoted cost. To the right there are funds allocated in the budget? He said.

What about the mental attitude and trend factors consumptive local furniture entrepreneurs? Sahuri recognizes hard to change mental attitudes and habits of consumption among buyers underesti-

mate local entrepreneurs. When we hold the money, yes forgot that what money, DP or bank loans used once wrote to an-other, recent production affairs, wrote in the ordinary here, he said.

If there is trouble during production, plus Sahuri, they are simple enough to borrow a fellow entrepreneur friends, rela-tives, family or neighbors. They believe it, because if the business is usually already way too easy money, said Sahuri that says it does not like it.

Never mind that, my friends stuff from Pare-pare my land sold by the fin-ishing, why are urged banks, whereas the goods, said Nana, local furniture Jepara other entrepreneurs. They are accustomed to underestimate the client and not look-ing far ahead.

Bad character like this must be changed if we want to progress and be successful, said M. Zakir. Mulyono agree. They both did not reject the fact that many local entrepreneurs Jepara is naughty and irresponsible, but they believe the laws of the market will kill cheaters like that. The sound of mouth will kill them, but its a pity that honest entrepreneurs later, they will come in contact with the sap, the client may be able to think clearly and do not generalize Jepara furniture producers, said M. Zakir. Global Wood Protection Specialists

www.uccoatings.com +1-716-833-9366

exportdesk@uccoatings.com

PREVENTING

DEGRADE AND LOSSES

IN VALUABLE

HARDWOOD

LOGS AND

LUMBER

DEGRADE AND LOSSES

IN VALUABLE

HARDWOOD

LOGS AND

LUMBER

ANCHORSEAL

ANCHORSEAL wax emulsion end sealer easy to apply with brush or sprayer

16

End checks are caused by over rapid drying on the ends of wood. This fast drying causes shrinkage and stresses develop that are eventual-ly released by the ends splitting and crack-ing apart. The extent of the damage is not always apparent. As end checks open and close during drying, the defects are hard to see at times. End checks that appear as hair-line cracks on air-dried material can extend 12 inches or more from the end. Their pres-ence and severity could go unnoticed until the after lumber is kiln-dried or cut, reduc-ing the yield and value of the lumber. An effective, water-resistant end coating will seal the ends of green (un-dried) boards or logs so they may dry more evenly from end to end, reducing or eliminating losses from end checking.

The USDA (U.S. Dept. of Agriculture-Forest Service) handbook Drying Hard-wood Lumber (FPL-GTR-118) notes:

[re: logs]

Veneer log buyers and veneer manufac-turers have used wax end-coatings on logs to prevent the ends from drying. End coating of high grade saw logs may be an economically sound practice because of the high cost of logs and the need to reduce waste. End coat-ing prevents logs from splitting and retards fungal stain. The wax coating should be ap-plied to the log immediately after cutting to be most effective. The longer the logs stored, the greater the benefit of coating.

[re: lumber] From the standpoint of both economics

and quality, hardwood lumber of all thick-nesses would benefit from end coating. When the ends of 5/4 red oak were coated with a wax emulsion coating*, the end checks were 2-1/8 in. (5.4 cm) shorter than those of uncoated ends (LinaresHernandez and Wengert 1997). End coating should be applied as soon as possible to freshly cut end surfaces.

Controlling quality in hardwood logs & lumber

creates value and gives benefits to everyone, so it is important to eliminate

degrade whenever possible. End checking (drying splits) is one of the most common

drying defects and one of the easiest to prevent. Properly end coating green logs and

lumber is an effective and economical method of

preventing end checking.

In addition to end coating the freshly cut ends of logs and lumber, optimal lum-ber handling will help to further control end checking:

box pile green lumber, even ended, with stickers at or near the ends

in the kiln, keep piles end to end, as tight as possible and stagger the ends of adjacent rows to mini-mize high air flow past the ends.

Controlling Existing Splits

in LogsSometimes there are pre-existing splits in the ends of logs, caused by end drying, stresses, or logging damage. LogSavers and FlitchSavers are used to stitch exist-ing splits in valuable logs, to prevent the cracks from growing larger. Unlike tradi-tional S-irons, they are made from special

recycled plastic saws or veneer knives cut right through them without damage, so they can remain in the logs. Invented by a professional logger, they are safer to use. Each plastic saver is held by a spe-cial hammer, so there are no hands in the striking area when it is hammered into the

log. Also, LogSavers and FlitchSavers will not create black iron stains in log ends. By stitching the log, then applying end sealer, degrade is reduced so the quality and val-ue of veneer and saw logs are maintained.

Preventing End Checking in Hardwood Logs

& Lumber

Product & Technology

LogSavers are used to control existing splits in valuable logs to prevent splits from increasing in size. As a professional logger in Pennsylvania, USA, Jim Higgins created the original LogSavers in 1987 to be safer and easier to use. Traditionally a piece of steel shaped like an S was used in the end of a log to hold splits together. Swinging the backside of an axe towards his left hand holding a steel s-iron, in order to drive it into a log, never seemed like a great idea to Jim. After dislocating his in-dex finger on his left hand while working, he knew there had to be a better way.

The innovative idea was to let the hammer hold the fastener, instead of the logger. Instead of a steel S-Iron staple, he designed a plastic staple called the Log-Saver that clipped into holes on the face of a special hammer. This kept the loggers hands out of the striking zone. The holes on the hammer face allowed the LogSav-ers to be held by the LogSaver hammer at a variety of angles. The LogSavers staple design yielded many other benefits. By us-ing a special high-impact plastic, all the problems caused by metal parts in logs were prevented. There was no need to re-move LogSavers from the log; you could cut right through them with no damage to saws or veneer knives. Black iron stains in

log ends were eliminated.The LogSavers System was quickly ac-

cepted by numerous logging operations andin1992HigginsapproachedUCCoat-ings to sell and distribute his new inven-tion.

SinceUCCoatingswasthe leader inwood protection products, and Id used ANCHORSEAL for many years, said Jim Higgins, I knew it would be a good fit.

While maintaining his job as a logger/buyer, Higgins collaborated with UCC Pres-ident Tom Johel and CEO Norman Murray to bring LogSavers to a wider market. U-C Coatings added LogSavers to their product line and sales increased. From the outset, itwasawin-winsituationforUCCoatingsand our customers, said Tom Joel.

Over the years, customer response led to various refinements in the design of the system. A smaller version, called the FlitchSaver was developed, the I-beam configuration was re-engineered to a curved version, and circular grooves in the hammer faces replaced the holes. This cus-tomer-centered approach improved the ease of use and increased the accuracy of staple placement; thereby providing the premier system to control existing checks and stress splits in logs.

In 2012, U-C Coatings Corporation

was pleased to welcome Jim Higgins to the U-C Coatings sales team. Working in the lumber industry since he was a teen-ager, Jim brings over 30 years of practical logging knowledge and sawmill experi-ence to its account team. Our 20-year history with Jim Higgins and the LogSav-ers product line, remarked Norm Murray, is another example of the way we strive to build strong relationships and provide the best wood protection products for our customers. Today, LogSavers are sold all over the world and U-C Coatings is look-ing forward to expand sales of LogSavers and ANCHORSEAL end sealer in Indone-sia, Southeast Asia and China. Video dem-onstrating the use of the LogSavers Sys-tem and ANCHORSEAL end sealer can be viewed at www.youtube.com/uccoatings. More information is available at www.uc-coatings.com or e-mail to exportdesk@uc-coatings.com

LogSavers from U-C Coatings, Improve Safety and Performance

By Anchorseal

18 19

Contact Information:Prieta PerthantriGerman-Indonesian Chamber of Industry & Commerce (EKONID)e. prieta.perthantri@ekonid.or.idp. +62 21 3154685 f. +62 21 3157088

Asias Leading Furniture Production FairGuangzhou, China

27 - 30 March 2014www.interzum-guangzhou.com

ASEAN Woodworking, Panel & Furniture ProductionSingapore5 - 8 November 2014www.furniproasia.com

Furniture. Production. Interiors.Cologne, Germany13 - 16 May 2013www.interzum.com

The Garden Trade FairCologne, Germany

8 - 10 September 2013www.spogagafa.com

The Garden Trade FairCologne, Germany

August 2014www.spogagafa.com

The International Furnishing ShowCologne, Germany

13 - 19 January 2014www.imm-cologne.com

Modern Office & FacilityCologne, Germany

21 - 25 October 2014www.orgatec.com

The Russian Interior ShowMoscow, Russia21 - 25 May 2013www.rooms-moscow.com

The Russian Interior ShowMoscow, Russia

20 - 24 May 2014www.rooms-moscow.com

The Event for Bathrooms, Flooring, Wall Coverings & Lighting

Cologne, Germany13 -19 January 2014

www.livinginteriors-cologne.comThis was disclosed by Dato Tan in his speech at the opening of the nineteenth MIFF exhibition at Seri Pacific Hotel, Kuala Lumpur, on March 5th. Muar which is located in Johor is the central of Malaysian furniture indus-try. So much furniture industry located in this region makes the expansion of the exhibition floor to approximately 80,000 square meter includes two venues in the Putra World Trade Center (PWTC) and MA-TRADE Exhibition and Convention Center (MECC). In MECC alone there are three ex-hibition halls, including the MFA hall.

Dato Tan also revealed that its party together with United Business Media (UBM) Asia had been promoted in Time Square New York and Las Vegas earlier this year. The aim was to attract more United

States buyers coming to this venue. This is similar to the fact that the United States is still the biggest market for Malaysian furni-ture products. The second biggest market is Japan. In recent years, it is noted that Southeast Asia region has been growing as one of the five biggest markets. In ad-dition to South America, Central Asia and the Middle East.

The growth of MIFF as big as it is now according to Dato Tan also demands the increase of sales achievement targets where in last year reached USD830 bil-lion. This is not an easy matter, but Dato Tan is optimistic in achieving them. For him, The bigger venues, the greater op-portunity for the exhibitors and buyers in exploring business and networking. This is great for buyers, as it will find more de-

signs and attractive option. No wonder if then he is very optimistic to be able to bring in 20 thousand buyers from different countries, with about 7,000 of them come from abroad. A fantastic figure, as in the five-day exhibition, there should be 4000 buyers in average.

President and CEO of United Business Media Asia Jime Essink mentioned that MIFF outside China, MIFF is the biggest furniture exhibition for his company. As the leading event in South East Asia, MIFF has a unique position as a strategic plat-form in the global furniture trade and its scope extended to reach new and devel-oping markets.

Meanwhile, the Minister of Industries and Plantation Commodities of Malaysia Tan Sri Bernard Giluk Dompok in his open-

Unlike the previous year, Malaysian International Furniture Fair (MIFF) this year is an ex-hibition with the largest growth rate in its history. Growth, which is only a year, it reached

25%. This incredible growth according to MIFF Chairman Dato DR Tan Chin Huat caused by the merger of Muar Furniture Association (MFA) exclusively to the exhibition.

Special Report

Malaysian International Furniture Fair 2013:

BIGGER& Becomes

an Attractive Magnet

20

ing speech said that MIFF in attendance since 1995 has now become a venue which can grow networking and opportunities between buyers and exhibitors interna-tionally, and is recognized internationally.

The ministry he leads will also con-tinue to facilitate the development of the industry, including the issue of raw mate-rial supply, promotion, and development of innovative designs in the future. Malay-sian furniture industry is also encouraged to switch from his current position as the Original Equipment Manufacturing to Original Design and Original Brand Manu-facturing. Even the Malaysian government has targeted foreign exchange earnings in 2020 amounted to RM8 billion just from the sale of furniture and associated prod-ucts.

This is what makes 509 exhibitors com-ing from 12 countries to showcase the best products this time. Although the market of U.S., Japan and even Europe that became the locomotive of the world economy is still not improving as well. Of the five hun-dred exhibitors, there were only six from Indonesia such as WoodMag, Olympic and High Point.

The strength of the Malaysian furniture manufacturers still seems to rely on a prod-uct from raw materials such as MDF pan-els. Most manufactured products are office furniture from desks alias cubical worksta-tion or office chair that seemed luxurious and sophisticated. This product can be re-garded as the greatest of all the products on display.

Almost all of the exhibitors are manu-facturers of furniture for this purpose. The difference between them is the design and the target segment. In some booths, this office furniture appears so alluring even seems quite luxurious and ultra modern

designed. In other places, similar the fur-niture look more homely. Similar raw ma-terials used to manufacture bedroom sets especially for children workstation bunk. Products in this segment seem to be quite large, as it is proved a number of booths showing off products to this target market. Even some combine raw materials with metals and plastics. Its colors are also quite attractive to the end-consumers.

Not only for children, a number of bed-set for adults also produced using the same raw materials. A number of dining-set also seems using these raw materials, and managed to perform quite impressing for most buyers.

For solid wood home furniture prod-ucts seem plentiful highlight the use of

rubberwood that is reasonably available in this neighboring country. There was one booth that showcased coat hanger product made of solid wood. The variety of designs and finishing makes it quite successful in attracting the attention of visitors. Bed sets and dinning sets are most products in utilizing solid wood. The de-sign is what distinguishes between one to another manufacturer, although an ob-server of furniture from Malaysia had said if almost all manufacturers produce some-thing similar to one another.

Only few manufacturers featuring dif-ferent products, such as metal cabinet for office filing purposes. Also only one exhibitor recorded manufactured natural and synthetic rattan furniture. What makes

interesting in the MECC that is there are exhibitors who display cabinet products and locker of plastic. This innovative prod-uct interestingly enough because unlike similar products which are already on the market in Indonesia. This knockdown product is quite compact, lightweight yet sturdy and comes with a lock like on the iron locker or wood panels. It appears that the producers have already been export-ing tables and chairs for private schools in Jakarta and Surabaya.

No doubt then that the battle moves on to the quality and price. The same ob-server also mentioned if the current Ma-laysian furniture exports decline signifi-cantly, and it causes the oversupply.

Malaysia strength is the ability to pro-

22 23

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PARACHEM

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ENBORER

duce sofa in qualified manner. This ability is much better than the same manufac-turer from its neighbor countries. This fur-niture still has a fairly rich variety, let alone supported by the existence and diversity of its raw materials.

Another strength of the MIFF is the presence of international exhibitors from China and Taiwan. Delegation from both countries is indeed fairly loyal exhibitors and always present from year to year. Par-ticipants origin of these countries not only display finished product furniture, but also the components and supporting raw ma-terials. Metal raw materials not only in the

form of screws, bolts and hinges but up to a metal die casting components. Likewise, plastic components, glass, upholstery cloth, synthetic leather which are mostly needed in the manufacture of furniture.

You could say the presence of produc-ers of raw materials and supporting mate-rials in full at MIFF has been able to make it as an important reference and is not over-looked to the buyer as well as the furniture industry in meeting their needs. Last year alone, a numbers of manufacturers from Indonesia utilized this exhibition to find suppliers for their needs such as plywood to HPL.

On the first day, the numbers of visi-tors could be said not as many as last year. But the numbers of visitors had increased dramatically since the second day. Many new visitors, such as the origin of Belarus and Russia were trying to find furniture products according to their needs. After nineteen years of implementation, MIFF is still going to be a major reference and a place to shop for international buyers including from new and developing mar-kets. No wonder if the local government claims Malaysian furniture products have been exported to 199 countries last year.

24 25

Profile

Being in the furniture industry has actually been done Mar-tinus Bualit, Founder, Owner and Director of PT Kudus Karya Prima since early in his career. Former employed a nationally renowned furni-ture company started to open the way his luck when prompted an investor to manage the furniture industry located in North Jakarta.

This incident is incidental because it actually apply to the company was actually his brother who had just grad-uated from college. Initially, he thought he was called to support his younger brother in the company of the investor. However, he was surprised, because it is he who is challenged to lead and man-age the company.

His business originaly timber sup-ply than take over the furniture that had been being supplied. Not knowing the details then sought professional like me , he said. After the meeting, the investors had asked Martin to manage the company. At the time, my position has not reached director level. I am confused by the offer because only met half a day, he continued.

His aspiration is to create a furni-ture factory. The first year there, it is still struggling to pave the way towards it. Originally done by a sub-contractor a big furniture company at that time. Then after starting acknowledged exis-tence by following a number of exhibi-tions. It all Martinus acted until 1996.

In 1996 also, he began to pioneer by making a simple workshop on Cile-but, Bogor. At that time I think have had the know-how and knowledge capital, ranging from additions, pro-duction to export trade system. It is time and pioneered the factory busi-ness, he explained. He bought land area of 700m2 property law, and ma-chinery from a number of colleagues. He was looking for a Wide Belt Sander up to Lampung. At that time the mar-ket price of used goods around IDR 60 million, but was offered only IDR 14 million. I went alone. His condition yes no dents, pneumatiknya not work, but the cord frayed mesinya pretty good shape, he said. He estimated that the new machine is used 1-2 years before it was abandoned. Arriving at Cilebut, lagsung any engine stripped down and repaired. By purchasing the machine Im already planning the direction and development of binsis this in the fu-

Martinus Bualit, Director PT Kudus Karya Prima:

Trust & Commitment

I thought I had the know-how and knowledge but have never had the oppor-tunity to own factories running, then there are people who challange me to it. Its not that there might be a chance for me to get lest ability running a factory. At least there are risks because, I steel in employees level If you want to test possible was not ful-filled. It concerns no small investment, and it is impossible for my class right employ-ees. So take it. There is risk if it fails ....... I think I am a college graduate. If you want to see a pedicab driver alone could support his family. So what I have to lose if I fail ?

I accept the challenge. Even more crazy is when I told him that I still owe th old farmer company a long time mort-gage to buy a house. If it has not been paid I could not leave. Then asked how much debt, after which he told me to meet him again tomorrow. The next day he handed over a wad of cash. When I ask for a signed receipt as proof of borrowing money. He even denied he said to pay it off immedi-ately. Whats that crazy people do not .....

Beginning witH tHe CHALLenge

26 27

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FASTENER

Concurrent Exhibition:

ture, he continued.Do not imagine he is likea factory, he

said. But he managed to have a primary production machinery. At that time, no molding machine even had a homemade spray booth. The walls are also of split bamboo and thatched two waves asbes-tos. Very simple but still able to produce, he explained. Clients initial obtained from the old office chose to move bandwagon. Baby chair products from rubber wood which survive to this day, he continued. Exports was started from 1 container 20ft per month.

In 1997-1998, when the first crisis, Martin realized if the income earned per month is much larger than the monthly

salary of the employee. the current crisis also bring blessings to him, since the fall of dollar against hard currencies the world. Windfall is used to raise a business. He also initiated the make furniture of teak, as sug-gested one sister who works in Semarang.

According to him, the highest compo-nent of the identity of the product is the raw material that is not appropriate if the plant site away from the source. Thats why in 1998, he opened a factory in Kudus. Its location right in the current location. The plant was auctioned off by the bank of the old owner at a bargain price, but there are already building, he said. The first exports to the United States in November 2008, several months after the establishment

Design can come from customers or our own. There is a design origi-nal design developing existing ones, or new ones. Partially patented. Cus-tomers simply send a rough basic design, then we who are mature and detailizel including devices used. We have to translate the start of construc-tion to the type and size of materi-als to be used. They rely on us to be able to make it happen. These include the manufacture of prototypes and testing to meet the requirements of strength and safety..

tHe deSign of tHe CuStomer, we Are to

reALize

Time in Cilebut, none of our employees are experienced wood-working. So I had to teach them one by one, from the beginning to be able to do work properly. Here, too. Thats not a problem because I was satisfied. There trade off plus. We start slower but they are educated in the right way it knows how to do it right.

eduCAting Hr from tHe Beginning

28

hose plant in the early years.When moved in, it was having trouble

finding a loan from the bank. They never want to lend money to a new factory, he said. Then she told me it was hard on the client ever. He said if the client has idle funds can be loaned USD 100,000 to the manufacture and installation of Dry Kiln. The payment made in kind purchased, 30% of its value to pay the installment. Without further ado, and without ba-bi-bu the money was transferred, he continued.

So far, none of the clients that come in an order to go with the upset here. Though they never met and only communicate via email or telephone, but until now the or-ders always come.

First time in Cilebut, while exports to the United States beginning no problem because the paint is sticky so it can not be opened. We check with the similar prod-ucts in the warehouse, the claim is true. So we decided to replace all the losses that amounted to one container. Goods there, I leave the handling to him. Want to be de-stroyed please. Want repaired, I let it be his way and if possible repaired.

Since then, the client really believes it. He was not anxious to do business with us. Thats what I keep to all my clients. Trust! If there are complaints that ap-pear, on average, there is a factory fault. If

Exports to date is still 50 per cent to the U.S. and the rest to Europe. Eu-ropean countries include Belgium, England, Germany, Italy, France, the Netherlands, Slovenia, and Turkey. China Market explored new year from customers in the Netherlands. When it was tried first one container, and today there are repeat order 1 container. So there is a market there, and can be resumed. We have already started planning to have anticipated the exhibition in China, probably in Shanghai. Weve participated in the exhibition Spoga 2003 and 2004, but customers are not comfortable with our presence though its products dif-ferent from their products. Our qual-ity can compete and potentially be a competitor for their products. Thats what makes them uncomfortable.

going expLoring CHinA mArket

Until now, we still use teak though the number has decreased by half. In 2003-2004, consumption in the range of teak 15000M3 annually. Everything supplied from Perhutani office. Now, only about 2000M3 year. This material has been shifted to the dominance of stainless steel. But I expect that with the increase in the U.S. market demand is still needed at least 3000 to 4000M3 teak annu-ally.

it is claimed and found to be true then the factory should be responsible, he contin-ued. If not, the same people whove given money to get items that can not be used.

Maintaining trust is originated from the teachings of his parents who said if If you are in business not to make others suf-fer because hokimu will not come again, she said. However, according to him, his parents never explained in detail about the consequences.

To keep it then it is never subservient to maintain quality. If speks been deter-mined then it must be maintained prop-erly. Thats why the head of quality control at the factory because they do not have a strong position bsia interrupted anyone, including himself, that in fact superior. If there is a delay because of the threat of co-ercion by forcing officers to pass qc stuff, then I get angry lanjtunya.

To maintain the trust takes commit-ment. If you commit a matter of price and time of delivery there will be no change. Any material and any change in price will

not be able to affect changes that have made a commitment, he said.

She points to a supplier company that often the price correction in the middle of the contract already signed. According to him, Then why have a contract, and still have to pay a down payment again. Thats causing uncertainty in business, he said. If the company applies the same as it was then obviously there will be no trust any-more.

If there is a change in the middle of the contract then it is a risk. We have to finish despite not getting margin. It will be cor-rected the next contract, he explained. He said he could not make corrections in the street. To him, if it is done then it means the same as the factory to the custom-ers door shut. It is a great loss because the customer will never come back. The plant life of the buyer. Whether small or large volume purchases, its number two. In terms of hongshui, when I have an at-titude like that, its ugly, he said.

StIll REcEIptS tEAkwood

30 31

Erik Ismargono, founder and owner Erik CV Furniture Manufacturing in Jepara never felt upset when he learned his heavily plagiarized by colleagues, neighbors or acquaintances. He also does not have to feel the need to mess around with custom alias copycat mimicking that thrives in this city, because for him They will not be able to follow all stages of production which we apply here, he explained.

In order to get a cheaper knockoff prod-ucts, imitators must take shortcuts such as by shortening the length of time the kiln and dry. Forty days should be cut in half, he explained. Unfortunately tamarind

wood (meh) does require treatment dur-ing that time, if it is less then it is likely the water content remains high and got moldy when exporting port destination. Not only that, the imitators are also often reduce the size of a chair or table leg made. As a result, the customer was ranting all out. Usually the tirade was also up on him. After that order was published similar products. Very favorable conditions, of course.

For him, not difficult to make a similar product because the manufacturer is the original maker. But he still said that if it still must adhere to standardized procedures and stages. If not then the same disaster will inevitably. He said if it ever gain valu-

able lessons from a customer orders a full pay upfront only to be prioritized. Small orders but he dared to pay it off in ad-vance, said Erik. Apparently this would disrupt the rhythm of the existing work.

Learning from that, the company is no longer interested in the momentary temptation. To be able to produce wood home furniture meh admit it does require patience, especially to see the temptation of money that brought the customer. We must continue to apply the first come first serve, he explained.

Everything went very mechanical, ranging from sawmil to KD and into pro-duction. With the existing rhythm, we knew the next order of the who, what material, what to do, he said. Due to the headers, we actually complained of other customers. In order not to happen again so we had to order, we can not have self-discipline. We have a clear time schedule, he continued

Currently it has just added a new pro-duction line to process meh wood waste.

Waste that is used to make new products such as lamps and a coffee table. Mer-chandise must be small dimensions, and sold at a cheaper price. Admittedly if it could sell product in hefty amount. Waste turned into stock, and serves as a filler in customers empty containers.

In addition, it is also a new production line for furniture made from plywood. This new line was held about a year and a half ago. The final product was in the form of dining table with new style or boatwood style. It Inspired from the wooden hull fishing boats painted repeatedly by users over the years to make it last. It finishing not produce perfect because surely some will peel paint or scratched before the newer overwritten color. We think that the use of wood native canoe definitely find the disease, then I challenge employ-ees to use plywood finishing, he said. The results were similar even though the process is a bit long. Then comes the idea to thin the paint used. It took a month to be able to find a formual tricks. Panel is

If The Market Does Not Exist,

Create It!

QuEStIonInG cERtIfIcAtIon

For us emphasize SVLK certification or legality of factor suppliers. We do not accept wood without complete paper-work. The price difference is only about IDR200.000 per truck. We strongly em-phasize that if they want to do business with us. Meh or tamarind wood is not a timber. That does not make it so compli-cated as other types of timber.

cuStoMER AnnuAl cAn StIll too

EccEntRIc

If it handles complaints are end-less. Here a lot of copycat. There was once a customer that has an annual customer grumbling about the qual-ity of the goods. He said it made us, and his love of his photographs were deliberately made parts of the macro. Finally, the image that we can identify through chair legs. Its size is smaller than we used to make. Then we verify and check about in-voicenya. Turns out its not a copycat product from our product. Then he apologized, he said one complaint. Instead it caught spots. It turned out to be one angry. He would find ad-vantage by finding cheaper suppliers from us. We can not forbid people to buy a set, even if the consequences he could get someone else to pro-duce cheaper for him to sample. If production copypaste it a lot here. Our satisfaction is the customer re-ceived the goods exclusively for her size. We do not count if he will pro-duce him another place to get cheap prices.

Custom orders are primary, about 40% of the total shipping. Wholesales was about 30%, a new project base. If we are too focused on wholesale afraid we would lose touch would best results. which produces a quick time. Wholesales it makes us not care about the link in the selection of materials and production. especially if the size is as small as 1m x 50cm, it is fulfilled. Try it once dicus-tom order certainly not until a week had complained of low

Custom order price is very attractive. That pressure. We prepare everything from sawing the log. Each log and timber identification numbers and gergajiannya has always sequential, and must always bookmatch one another. Want to be stacked as high as any in the barn does not matter. We live look at where to find the number and unload goods.

cuStoM oRdER A HoME

We are still producing furniture from wood tamarind or tamarind. It is very rare because the timber can not be silent. No one can take into account when timber has two more years to move again. It was already clear at the start to our customers so they are not surprised later. There are customers who have complained that the furniture of wood after two years of use still moving and throw-ing the bolt. There are friends who say they can make similar furniture from the same wood at lower prices. I said please do, but infact there goods already rotting container. It was not until the nearest port of destination.

plEASE do

wItHout clAIMS wE nEvER lEARn

The claim is not always bad. Without any claim we never learn. Working order or timber sour tamarin was first to claim for a sec-ond rotten container. This is be-cause they do not understand his character. This wood can be affixed to the timber walkin same. Could not finish with the NC. Better with melamine. Treatmentnya also spe-cial at all. One treatment might be-come rotten.

HAd plAnnEd EARly

Raw material must be fixed and it should be calculated depreciation. It had been planned to finished product what with what size and who would buy. If it does not go in, then had to be planned for anyone else. So it must have been planned from the begin-ning. Starting from materials preparation. Thats why I love to hang out at the sawmill. I have a friend at the sawmill, a mother whos were kebaya is teaching her son to it. Satisfaction was there from the beginning. Can not appear suddenly, as you know any changes that occur. By doing so, you will not blame others if an error has occurred.

Erik Ismargono,Owner CV Erik Furniture Manufacturing

Profile

32 33

painted and then repeatedly vandalized or rustic. It save the cost because no need to look for the boat harbor damaged, he continued.

Sample was then given to the cus-tomer and approved. Orders are not great due to the size of the container 40 feet, the volum is about 2M3 is a product when it finishing boatwood plywood he said. Initially, the best quality plywood is used, but in fact the same material of poor quality can result in similar prod-ucts. Thereby increasing profit margins and Fortunately the buyers not bargain too.

Initially, the company produces mostly furniture using teak. Besides, he also uses mahogany even tamarind (tam-arind). We switched from teak to meh because our market first fully American market, but when the economy falls then it happened, he explained. Previously, recognized if the manufacturer never thought to market their products to the domestic market. So then it occurred to collapse America to buy paddy field. Thats the worst way out if the situation does not get better, he said with a laugh.

First, it was never thought to open the showroom. Once the crisis was made that in order to penetrate the domestic

market. We used to make product vic-torian style antique mahogany painted rather thick and then vandelized, he said. Now he not only has a showroom but also own brand Habitat.

According to him, the style has been ascertained if the picture aka Union Jack British flag is an image-selling. I do not want it, he said. He just wanted a pic-ture of ancient banner front section of furniture product. The penchant of Americans was not far from the auto-motive and drink. I want a picture of an ancient bannner beer but then dirustic. Logo old logo but there penerimaanya actually good, he continued. The idea is quite brilliant and has a direct impact on increasing sales.

According to him, the experiments in the development of the design is a must. But until now, he still sees himself not as brave colleague businessmen who are able to realize a very difficult idea. There is a colleague who is expert in tin pressed into a hole and not burning wood. The end result is remarkable because the price is also very high, he said. According to him, it is clear the product exclusively and only for the super rich. End consum-ers only buy one item and just do a re-peat order after 2-3 years. Thats why he

says It takes imagination in designing and producing such beautiful chairs as youd see, he added.

I can not, he explained. According to him, it did make a special product, but the price is not too high. So it is practically a mass product, he continued. That way it does not need to look to the East Java timber and taken to the warehouse and sanded. If thats the case, who would want to buy?

When interviewed, the company is cur-rently working on a project for a hotel in Dubai, United Arab Emirates. Although it is recognized already familiar with similar projects, but this time its communication very intensive, he said. Prior to this proj-ect, it never worked on orders for 6-meter diameter gazebo without a pole in the middle. Just above there is a bond. Mak-ing it to F1 GrandPrix Dubai events that will take place at that time. All the stages are run and so goods to Dubai, apparently event was past. Not because of poor qual-ity or any defects . I do not know whether its gazebo will be installed at the next F1 GrandPrix event.

I think there why people like it, you like throwing money away without the goods installed in time. From there I saw that mirror the market like this, he said.

To him, there are people with limited capital but can sell items with small profit. But there is also a sell-scale only once but with a big profit. So we thought why not open a lot of the production line. We still produce the goods teak though less than 20% of the total, he explained. Be now the company is capable of producing a wide range of ordered items, even including or-ders for stainless stell foot of the table.

The idea to open a production line is actually originated from the customers complaint about the cost of production in the United States there are many times more than in Jepara, pushing it to make it happen soon. When we want to buy ma-chine cut stainless stell alias plasma cut-ter, the seller even if it asks if you want to make a tank of kerosene. Neighbors also wonder why manufacturers of furniture instead of hectic same welding shop, he laughed. Having this workshop turned out to ease in production. Especially when do-ing bench dragon booked a hotel in Dubai there. Without his presence, processing time can be extended from the target. He did not bother to supervise simultane-ously argued in translating ideas to detail.

know How to pRoductIon, MAy

not know tHE MARkEt

The clerks in and out of a com-pany, including here. There is a friend who said it could eliminate confiden-tiality style furniture manufacturing company. I say if it knows its gone for it. This is not a problem, you know how it works should have to know the market well. If anyone told me I could make a much cheaper price, then I would ask is sold where? Suma-tra or Borneo? Not going to sell such a model. For the local market such models are not going to sell our pro-duction. For furniture, prospective buyers would definitely look at the price first. Our production costs have always complained more expensive. And he said the same satisfaction. Its impossible. Normally buyers tend to compare, and generally do not have the same personal touch because its different for each item.

EuRopE IS not foR uS

We are not lucky enough with the Eu-ropean market. We have 4 home buy-ers there with order 2 is acceptable 40ft container per month turns off after the crisis. This is because the tax. Our price but they spent most of the tax benefits. They complained that it was triple the cost just because it was too high. But they can go to Bali because the cost is quite cheap.

If not coME MAR-kEtS, yES cREAtE MAR-

kEt youRSElf

Five years in the future, the economy is still not encouraging. Meh with di-ameter of this size would be difficult to find, because it took ten years to be able to grow to a diameter equal to this. Not only grown but also need care. Maybe recycle wood with style reproduction or use mindi wood is cheap. If the wood is still difficult marketing Kalimantan. If you do not follow the market, so I cre-ated its own market.

34 35

made with Love

in indonesia

Indonesia used to be positioned as an industry base, we only pro-duced goods here, but the devel-opment and sales done in other countries, said Vincent. In his eyes, this time, trends and market value and branding has changed. Its a lot different from the previous one, he said.

He admitted, today Indonesian brand continues to increase even compared with the Belgian brand which is the coun-try of origin of PT Mamagreen Pacific. Indonesia is now defined as something that is expensive. Earlier, when people mentioned Made in Indonesia, the per-ception in the minds of consumers was a liability or other negative connotations. Its like a low-end product, cheap, and low quality. Nowadays, Made in Indone-sia means more creativity, exotic, high quality, high service and high end. Even some of which also means luxury goods. So Indonesia brand, past and present is so much different.

This big change is what prompted the company which has status of foreign investment (PMA) of Belgium is adding the words Made with love in Indonesia in the logo. The official launch of the new logo has been done in conjunction with the IFFINA exhibition held in mid-March.

According to Vincent, the companys product sales have increased signifi-cantly in the last two years. He also ex-pects sales for the year ahead will also be better than ever. The prospects are very good, he explained. It has been supported by the entry of an order from the buyer which is expected to condense a years work schedule. This is a positive contribution to the achievement of the company, as well as the positive contri-bution of the logo change.

Currently, there is a trend that shows shoppers prefer to shop directly to man-ufacturers like PT Mamagreen Pacific. It has changed Indonesia than just act as a manufacturing base into retail as well as wholesale basis. Many retail activities of the company at this time. Today, we also act as a wholesaler that once only exist-ed in Europe. European retailers have cut the cost in order to remain economically viable because of the economy being tough , he explained.

Vincent Cantaert, Director of PT Mamagreen Pa-cific Indonesia, located in Semarang Central Java mentioned that Indonesia is no longer known as a production base but has now become a famous creativity center on the global stage. This change

increases in the selling value of Indonesia in recent years.

Biz Profile

Creative team

Vincent Cantaert, Director PT Mamagreen Pacific Indonesia:

36 37

The most difficult part is to outpour ideas onto paper. From the picture you should be able to make the furniture. The furni-ture should be good in quality and eco-nomic sound to produce. Without both will be useless later. If the price does not go on the market it is difficult to produce. Out of the market.Ergonomic factors become more impor-tant today. People do not want to sit on a hard wooden chair, people do not want to buy stuff that is used once a year or never used at all. People would like to relax so everything should be ergonomic, elegant, weather resistant.

Copy rigHt not rigHt to Copy

Approval of IPR process here is much longer than in Switzerland. It takes six months from enrollment until discharge certificate. Sometimes it is faster or longer. If the time is shorter then it will encourage more creativity. Registration process for patents is too long. Certification must be issued by international scope. That will be better.

Right now we have double registra-tion, in Jakarta and Switzerland. It will better if it is only in Jakarta but for inter-national scale. For international scale, it is still easier to be registered in Switzerland as it is fast and easy. IPR is something new in Indonesia. There are hardly any people who understand the issue here. Also a lawyer who is a specialist in this field.

The change of the industrial base be-come creative centers needs the protection of the designs in a variety of industries. It is important because it can boost the creative work in the future.

The raw materials are here, the Hu-man Resources are also here. As well as the intellect workers are also here. Television and internet usage are also expanding. Ja-karta fashion week is important as well as the music industry here. All parts of the creative industries here become even more important. The potential is huge but the protection of designs is still a weakness.

Which becomes a serious concern is the lack of Governments socialization to-ward Act relating to Intellectual Property Rights (Specifically Copyright, Brand and Industrial Design) mainly to the under-standing of sanctions associated with the violation of IPR. That sanctions for those who violate intellectual property rights (in particular industrial design) may be pros-ecuted by Criminal or Civil Code, makes it clear that the offender could go to jail and pay damages or loss caused by the offense.

Our philosophy is that we design something that does not exist on the mar-ket. This is the basic idea. If its already on the market then we believe you have to compete in price. Thats because the stuff was already there. We are trying to design something new. Of course sometimes be successful, but it can also fail.

Trends change quickly so we had to make about 2 collections per year. First it was only one. It is about 100 items per year. Its a lot of pressure, but the life cycle of a product becoming shorter maximum only 5 years for an