LPEM FEUI FEUI LPEM 2014-02 Institute Institutefor for Economic Economic and and Social Social Research Research LPEM LPEM FEUI FEUI BRIEF BRIEF Faculty Facultyof of Economics Economics University University of of Indonesia Indonesia www.solopos.com Textile and Textile Products, Footwear, and Furniture Industries: Could They Continue to Develop? I Kadek Dian Sutrisna Artha1 dan Uka Wikarya2 Editor : Jayu Pramudya Editor : : JayuSetting Pramudya Dian Purnamasari Setting : Dian Purnamasari September 2014 www.lpem.org September 2014 www.lpem.org Executive Summary Summary Executive Industri manufaktur Indonesia memiliki potensi untuk berperan sebagai Indonesia’s manufacturing industry has thekarena potentialberkaitan to act as leading sector in leading sector penguatan perekonomian, dengan sektor strengthening the economy, it is linked other sectors and significant analisis valuelain, dan bernilai tambahbecause signifikan. Studitoini bertujuan (1) has Melakukan added. This studyserta aims (2) to (1) perform historical data analysis; and (2)industrial make projections data historis; Melakukan proyeksi atas indikator terpilih. over the chosen industrial indicators. The object of the study covers the industrial Objek kajian meliputi sub-sektor industri Tekstil dan Produk Tekstil (TPT), alas subsectors textile and textile products (Tekstil dan Produk Tekstil/TPT), footwear, and kaki, sertaoffurnitur, dalam periode pengamatan 1990 - 2012. furniture, in observation period of 1990-2012. Ketiga sub-sektor dihadapkan pada permasalahan umum meliputi (1) Keterbatasan industri bahan penolong; (2) Kelemahan teknologi; The three subsectors arebaku faceddan with general issues including (1) lack of raw(3) Keterpusatan ekspor pada beberapa komoditas dan negara tujuan; serta materials and auxiliary industries; (2) technological weaknesses; (3) exports that are (4) Ketidaksesuaian produk. 1% PDB and dunia concentrated in some standar commodities andPeningkatan destination countries; (4)diperkirakan discrepancy in ketiga sub-sektor sebesar 0.08%. Kenaikan pendapatan per riil product standards. An increase in world’s GDP by 1% is expected to increasekapita GDP in the secara domestikbysebesar 1%rise berasosiasi pertumbuhan 0,42%. three subsectors 0.08%. A in real perdengan capita income by 1% domestically will Rekomendasi untuk sub-sektor TPT meliputi (1) Pemberdayaan industri associate with 0.42% of growth. hulu, seperti produsen fiber, rayon, poliester, dan serat alam berbahan nonRecommendations for TPT aturan subsectorperemajaan include (1) empowerment of upstream dukungan industries, kapas; (2) Pengetatan mesin; (3) Penyediaan such rayon, polyester, non-cotton natural fiber producers;pasokan (2) stricter energi. rules of danaas fiber, investasi; serta (4) and Penjaminan kesinambungan machinery refurbishment; (3) provisionalas for kaki the support investment funds;kembali and (4) Rekomendasi untuk sub-sektor adalahof (1) Peninjauan assurance uninterrupted supply of energy.dan Recommendations for footwear subsector laranganfor impor kulit dari Tiongkok pengkajian wacana pembatasan are (1) reevaluation ban on Chinese leather and assessment of the plansubto ekspor kulit; serta of (2)import Pemantapan koordinasi tripartit. Rekomendasi bagi restrict exports berupa of leather; and (2) consolidation of tripartite coordination. sektor furnitur (1) Minimalisasi hambatan institusional; (2) Pengawasan Recommendations fordan furniture subsector are (1) minimization of institutional barriers; (2) pembalakan liar, pembatasan eskpor monitoring of illegal loggings and restricting exports of timber; (3) assessing the plan for Exports Buffer Agency (Badan Penyangga and (4) improvement of labor Kepala Kajian MakroekonomiEkspor); dan Energi LPEM ( uka.wikarya@gmail.com ) regulations. 1 2 Director of LPEM (kadekartha@lpem-feui.org) LPEM Head of Macroeconomic and Energy Studies (uka.wikarya@gmail.com) LPEM LPEM FEUI FEUI LPEM POLICY BRIEF Lembaga Institute forPenyelidikan Economic Ekonomi dan and Masyarakat Social Research FakultasofEkonomi Universitas Indonesia Faculty Economics University of Indonesia Pendahuluan Introduction Pertumbuhan ekonomi dunia, termasuk economic growth, diperkirakan including thatakan of negara World - negara berkembang developinglebih countries, is predicted to grow faster in 2014 tumbuh cepat di tahun 2014 dibanding than it 2014 did in(IMF, 2013 2013). (IMF, 2013). Indonesia, which tahun Indonesia yang recorded a 5.3% growth in 2013, is expected to mencatatkan pertumbuhan 5,3% di tahun 2013 experience an acceleration of growth into 5.5% in 2014. diharapkan mengalami percepatan pertumThe expectation has been overshadowed by various buhan menjadi 5,5% di tahun 2014. Harapan problems such as the weakening of rupiah, as well as tersebut masih dibayangi oleh berbagai increases in inflation and interest rates. Balance of permasalahan seperti pelemahan nilai tukar payments deficit due to soaring imports is the factor rupiah, serta peningkatan inflasi dan tingkat suku believed to have provided significant contribution to the bunga. Defisit neraca pembayaran akibat emergence of the problems. Practically, balancing the melambungnya impor merupakan faktor yang trade balance becomes a necessity in order that diyakini memberi sumbangsih signifikan dalam Indonesia’s growth projections will not be hampered. memunculkan masalah tersebut. Praktis, peEfforts to strengthen exports have actually faced an nyeimbangan neraca perdagangan merupakan indication of positive responses from businesses, keniscayaan agar proyeksi pertumbuhan judging from the shift in foreign investment from Indonesia urung terhambat. Upaya penguatan tertiary sector and in domestic investment from primary ekspor sebenarnya menghadapi indikasi sector, both move towards secondary sector in tanggapan positif dariManufacturing pelaku usaha, ditilik dari manufacturing industry. industry in this pergeseran investasi luarthe negeri dari sektor tersier case is believed to possess potentials to act as the dan investasi domestik dari sektor primer, leading sector in economic strengthening, given its keduanya menuju sektor with sekunder di industri nature of broad engagement other sectors and manufaktur. Industri manufaktur dalam hal ini providing material value-added to products by optimally diyakini memiliki potensi untuk berperan sebagai utilizing factors of production. leading sector penguatan perekonomian, meDetermining the validity of assumption will directly ngingat sifatnya yang memiliki keterikatan luas influence the accuracy of projection. Fluctuating factors dengan sektor lain, dan memberikan nilai such as trends, cycles, and seasonal also tambah secara material bagimovement produk will dengan be observed as influential factors.secara The objects of this memanfaatkan faktor produksi optimal. study include the industrial subsectors of textile Penentuan keabsahan asumsi akan and bertextile products (Tekstil dan Produk Tekstil/TPT), pengaruh langsung terhadap keakuratan footwear, and furniture. The fluktuatif three subsectors tend to proyeksi. Faktor - faktor seperti trend, have characteristics close to labor-intensive, thus siklus, dan pergerakan musiman akan turut providingsebagai enormous contribution to job creation if diamati faktor yang berpengaruh. Objek effectively the Tekstil three kajian studi managed. ini meliputiQuantitatively, sub-sektor industri subsectors analyzed based onkaki, quarterly dan Produkare Tekstil (TPT), alas sertahistorical furnitur. data in the period between 1990-2012. Ketiga sub-sektor tersebut cenderung mendekati karakteristik padat karya, sehingga akan memberikan sumbangsih besar dalam penciptaan lapangan pekerjaan jika dapat dikelola secara efektif. Secara kuantitatif, ketiga sub-sektor tersebut dianalisis berdasar data historis kuartalan antara periode 1990 - 2012. 2 General Issues Umum Permasalahan Meskipun memiliki kekhasan masing Despite having distinct characteristics from one masing, ketiga sub-sektor cenderung dihadap another, all three subsectors tend to be faced by the kan pada permasalahan umum industri nasional. general issues in national industries. Internally, those Secara internal, permasalahan tersebut meliputi issues cover (1) limited number and capacity of basic (1) Keterbatasan jumlah dan kemampuan industri industries needed as providers of raw and auxiliary dasar yang diperlukan sebagai penyedia bahan materials; (2) weaknesses in the mastery of technology baku dan bahan penolong; (2) Kelemahan pada and research and development activities; (3) exports penguasaan teknologi, aktivitas penelitian dan that are concentrated only in some commodities and pengembangan; (3) Keterpusatan ekspor pada destination countries; and (4) discrepancy between beberapa komoditas dan negara tujuan saja; product standards and required qualifications. The serta (4) Ketidaksesuaian standar produk dengan national industries are also facing various external ketentuan yang dipersyaratkan. Industri nasional issues, including (1) unavailability of transport and tengah menghadapi pula berbagai masalah energy infrastructure; (2) unsupportive bureaucracy and eksternal, meliputi (1) Ketidaktersediaan unattractive incentives from the government; (3) infrastruktur transportasi dan energi; (2) Birokrasi absence of financial institutions which provide specific yang tidak dan insentif dari pemerintah financing forberpihak each subsector with a competitive interest yang kurang menarik; (3) Ketiadaan lembaga rate; and (4) ineffective communication between keuangan yang menyediakan pembiayaan industries and industrial research-and-development secara centers.spesifik untuk masing - masing sub-sektor dengan tingkat bunga bersaing; serta (4) Based on the influence of macroeconomic conditions, it Inefektivitas komunikasi antara industri dengan is found that production value of industrial. manufacturing pusat penelitian dan pengembangan industry is more affectedpengaruh by domestic kondisi environment than Berdasarkan makro it is by global environment. For every 1% growth in ekonomi, ditemukan bahwa nilai produksi industri aggregate Growth Domestic Product (GDP), GDP manufaktur lebih dipengaruhi oleh lingkungan contributeddibanding by manufacturing industry global. will growUntuk more domestik lingkungan rapidlypertumbuhan by 1.3%. As for when the world GDP grows by setiap Produk Domestik Bruto (PDB) 1%, manufacturing industry’s growth is predicted agregat sebesar 1%, PDB GDP yang disumbangkan to increase by only 0.11%. Themeningkat industrial subsectors of industri manufaktur akan lebih pesat TPT, footwear, furnitureketika have a more sebesar 1,3%. and Adapun PDB inelastic dunia relationship to world GDP compared to meningkat sebesar 1%, pertumbuhan manufacturing PDB industri industry. 1% increase in world GDP is estimated to only manufaktur diperkirakan hanya meningkat increase0,11%. the GDP of TPT, industri footwear,TPT, and alas furniture sebesar Sub-sektor kaki, subsectors by 0.08%. A rise in real per capita income by dan furnitur memiliki keterkaitan yang lebih 1% domestically alsoPDB associates only 0.42% GDP inelastis terhadap dunia,with dibanding industri growth in the respective subsector. The task to guard manufaktur. Peningkatan 1% PDB dunia the strengthening of the three subsectors will diperkirakan hanya akan meningkatkan PDB subhypothetically be more challenging compared to that of sektor TPT, alas kaki, dan furnitur sebesar 0.08%. manufacturing industry in general. Kenaikan pendapatan per kapita riil secara domestik sebesar 1% juga hanya berasosiasi dengan pertumbuhan PDB sub-sektor bersangkutan sebesar 0,42%. Tugas mengawal penguatan ketiga sub-sektor tersebut, secara Textile and Textile Products, Footwear, and Furniture Industries: Could They Continue to Develop? LPEM LPEM FEUI FEUI LPEM POLICY BRIEF Lembaga Institute forPenyelidikan Economic Ekonomi dan and Masyarakat Social Research FakultasofEkonomi Universitas Indonesia Faculty Economics University of Indonesia lhipotetis lebih menantang dibanding Potentials ofakan TPT Subsector industri manufaktur secara umum. The industrial subsector of TPT can be distinguished into Potensi Sub-Sektor TPT upstream, midstream, and downstream industries. Internally, subsector has Sub-sektor industri TPT this dapat dibedakan some strengths in the form of (1) availability of labor atas industri hulu, antara, dan hilir. Secara internal, that grows byini an average of 1.6% per year considering sub-sektor memiliki kekuatan berupa (1) no need for special skills; (2) reliability of quality, as Ketersediaan tenaga kerja yang tumbuh rata exemplified by tahun polyester products;tidak and diper(3) rata 1,6% per mengingat implementation of obligatorykhusus; machinery lukannya keterampilan (2)refurbishment Keandalan once everyseperti 20 years. Weaknesses produk of the subsector kualitas, dicontohkan poliester; include(3) (1) underdevelopment of research mesin and serta Penerapa kewajiban peremajaan development efforts which ideally obtain 1.7%-3.6% setiap 20 tahun sekali. Kelemahan sub-sektor ini from GDP(1) in funding; (2) high selling prices because dan of meliputi Kete-rtinggalan upaya penelitian soaring production cost; (3) high cost of electricity and pengem-bangan yang idealnya memperoleh fuel; and (4) port infrastructure that does notPDB, support pendanaan antara 1,7% - 3,6% dari (2) the increasing frequency of trade and seeks its own Tingginya harga jual akibat melambungnya profit instead. biaya produksi; (3) Mahalnya biaya energi listrik dan bahan serta (4) Linked tobakar; external situation, TPT Infrastruktur subsector has pelabuhan yang tidak mendukung peningkatan opportunities in the form of (1) growing domestic frekuensi perdaga-ngan dan justru mencari middle-class consumer base; and (2) elimination laba of sendiri. barriers to international trade in the form of tariff as situasiby eksternal, subwell asDikaitkan non-tariff. dengan Threats faced TPT subsector sektor TPT memiliki oportunitas (1) include (1) intense competition with otherberupa exporting Pertumbuhan basis konsumen menengah countries that have lower labor costkelas such as Vietnam domestik; serta (2) Peniadaan hambatan and Bangladesh; (2) advanced production technology perdagangan internasional owned by competitor countriesberupa such astarif Southmaupun Korea non-tarif. Ancaman yang dihadapi sub-sektor which facilitates the continuous coordination TPT of meliputi (1) Ketatnya persaingan dengan negara production chain; (3) highlights on some companies’ pengekspor lain yang memilikiignore upah buruh lebih practices which irresponsibly the waste rendah seperti Vietnam dan (2) management, which give rise to Bangladesh; apathetic public Majunya teknoogi yang TPT dimiliki negara attitudes; and (4) an produksi influx of illegal commodities pesaing Korea Selatan sehingga mudah marketedseperti at affordable prices, such as those originated mengkoordinasikan rantai produksi secara from China. berkesinambungan; (3) Sorotan atas praktik Considering the conditions described, beberapa perusahaan yangalready secara tidak based on pessimistic scenario, the upstream part of TPT bertanggung jawab mengabaikan pengolahan subsector is projected to be able to record 0.61% limbah sehingga memunculkan sikap apati growth in production and 17.96% in exports. Production masyarakat; serta (4) Membanjirnya komoditas of midstream TPT subsector is projected to grow more TPT ilegal yang dipasarkan dengan harga rapidly by 0.65%, but exports grow much more slowly terjangkau, seperti yang berasal dari Tiongkok. by only 2.25%. Production of downstream TPT Mempertimbangkan kondisi yang telah subsector is projected to grow much more rapidly at dideskripsikan, berdasar skenario pesimistis, sub11.43%, outperforming the previous two parts, and sektor TPT bagian hulu diproyeksikan mampu exports at 7.96%. mencatatkan pertumbuhan produksi 0,61% dan 3 ekspor 17,96%. Produksi TPT bagian Meanwhile, based onsub-sektor moderate scenario, the antara tumbuh lebih to pesat sebesar highest diproyeksikan production growth is expected be achieved 0,65% namun ekspor tumbuh jauh lebih lambat by downstream TPT subsector at 12.61%, followed by hanya sebesar 2,25%. Produksi sub-sektor TPT midstream at 3.81% and upstream at 1.78%. The bagian diproyeksikan tumbuh sequence hilir for optimistic scenario is still the same jauh with mengungguli kedua bagian terdahulu dengan the value at 13.57%, 7.04%, and 2.56%. The exports kisaran eksporresults 7,96%.where, in moderate indicator11,43% showsdan different Sementara itu, berdasarkan scenario, the fastest growth is expected to be skenario achieved moderat, tertinggi by upstreampertumbuhan TPT subsector atproduksi 22.44%, followed by diperkirakan diraih oleh sub-sektor TPT downstream at akan 9.79% and midstream by 6.65%. Similar bagian sebesar scenario 12,61%,is kemudian sequencehilir in optimistic expected to antara record 3,81% dan hulu 1,78%. Urutan untuk skenario the value at 27.26%, 11.55%, and 11.46%. optimistis masih sama dengan nilai 13,57%, 7,04%, An effective industrial strengthening is not unlikely to dan 2,56%. Indikator ekspor menunjukkan hasil stimulate di production and exports growthmoderat in TPT berbeda mana untuk skenario subsector. This study recommends to go through some pertumbuhan terpesat diperkirakan dicapai oleh corrective measures which include (1) a focus on sub-sektor TPT bagian hulu sebesar 22,44%, lalu hilir empowering the upstream part, such as for producers 9,79% dan antara 6,65%. Urutan serupa dalam of fiber, rayon, polyester, and non-cotton natural fiber; skenario optimistis diperkirakan mencatatkan nilai (2) stricter rules of machinery refurbishment, especially 27,26%, 11,55%, dan 11,46%. for spinning machines, looms, knitters, and garment Penguatan industrial yang efektif bukan machines; (3) provision for the support of investment tidak mungkin dapat memacu pertumbuhan funds; and (4) assurance for uninterrupted supply of produksi dan ekspor sub-sektor TPT. Studi ini energy by utilizing alternative sources, such as coal, to merekomendasikan ditempuhnya langkah replace oil and gas. perbaikan yang meliputi (1) Pemberdayaan secara fokus bagi Subsector bagian hulu, seperti bagi Potentials of Footwear produsen fiber, rayon, poliester, dan serat alam The industrial subsector footwear is classified berbahan non-kapas; (2) of Pengetatan aturan into upstream and downstream. Internally, the peremajaan mesin, khususnya bagi mesin subsector has astenun, its strengths an abundant amount and pemintalan, rajut, dan garmen; (3) low turnover dukungan of labors. Weaknesses include (1) limited Penyediaan dana investasi; serta (4) supply of raw materials, especially cowhide which 75% Penjaminan kesinambungan pasokan energi of the needs are met through import; (2) increased memanfaatkan sumber alternatif seperti batu labor cost due to the adjustment in minimum wage; (3) bara untuk menggantikan minyak dan gas. high logistics cost; and (4) regional licensing and taxationSub-Sektor requirements Potensi Alasthat Kakihave poor legal certainty. Externally, this subsector actually has extensive market Sub-sektor industri alas kaki diklasifikasikan potentials,bagian but it ishulu currently menjadi dan facing hilir. serious Secarachallenges internal, from competitors, such as China. sub-sektor tersebut memiliki kekuatan berupa berlimpahnya dan the rendahnya turnover Based onjumlah the situation, downstream part of tenaga kerja. Kelemahan yang dimiliki antara lain footwear subsector is projected to grow by double digits meliputi Keterbatasan pasokan bahan baku, in 2014 in(1) a variety of scenarios. Production growth is khususnya berupa kulit sapi yang hampir 75% projected at 16.94%, 19.89%, and 21.08% for kebutuhannya dipenuhi (2) pessimistic, moderate, and melalui optimistic impor; scenarios Peningkatan upah buruh akibat penyesuaian respectively. Increases in exports are relatively less Textile and Textile Products, Footwear, and Furniture Industries: Could They Continue to Develop? LPEM POLICY BRIEF LPEM LPEM FEUI FEUI Lembaga Institute forPenyelidikan Economic Ekonomi dan and Masyarakat Social Research FakultasofEkonomi Universitas Indonesia Faculty Economics University of Indonesia upah minimum; Tingginya biaya logistik; serta consistent without(3) fluctuated by changes in assumption, (4) dan perpajakan i.e. Ketentuan at 18.03%, perizinan 18.78%, and 19.51% for the daerah same yang memiliki kepastian hukum buruk. Secara sequence of scenarios. It indicates that footwear eskternal, sub-sektor sebenarnya memiliki subsector could act asinione of the consistent potensi pasar yanggrowth, luasregardless namunof external tengah contributors to industrial dihadapkan dari on pesaing circumstances.pada The tantangan projection serius is based the seperti Tiongkok. assumption of domestic GDP growth at 5.3%, 5.6%, and Berdasar keadaan tersebut, sub-sektor 6.3%; world GDP increase by 3.6%, 3.8%, and 4%; and alas kaki bagian hilir diproyeksikan mampu increases in exports prices by (5%), 0%, and 5% for tumbuh hingga dua digit tahun 2014 dalam pessimistic, moderate, and di optimistic scenarios beragam produksi respectively.skenario. The urgent Pertumbuhan corrective measures to be diproyeksikan 19,89%,include dan 21,08% implemented bernilai by the 16,94%, government (1) terurut untuk dan reevaluation of skenario import banpesimistis, on Chinesemoderat, leather and optimistis. Peningkatan eksporexports relatifoflebih tidak assessment of the plan to restrict leather in konsisten tanpa continuity terfluktuasi order to ensure of oleh supply;perubahan and (2) consolidation tripartite coordination, that the asumsi, yaitu of sebesar 18,03%, 18,78%, so dan 19,51% decisions in industrial relations, such as remuneration, untuk urutan skenario yang sama. Hal tersebut could pay attention every stakeholder, including menandakan bahwatosub-sektor alas kaki dapat business owners. berperan sebagai salah satu kontributor pertumbuhan industrial yang konsisten, terlepas dari Potentials of Furniture Subsector situasi eksternal. Proyeksi tersebut didasarkan atas asumsi Furniture pertumbuhan PDB domestik sebesar 5,3%, subsector has several strengths 5,6%, danwhich 6,3%,include peningkatan PDB dunia sebesar internally (1) an abundance of wood and 3,6%, 3,8%, dan 4%, serta kenaikan harga ekspor rattan for raw materials, as well as skilled labors; and (2) sebesar (5%), 0%,and danconsistency 5% seluruhnya terurut untuk the uniqueness of product quality. skenario optimistis. Weaknessespesimistis, encounteredmoderat, include (1) dan inefficiency and Langkah korektif inyang mendesak ditelow productivity production; (2) untuk inadequate rapkan pemerintah (1) Peninjauan competence of craftsmen adalah in value-added creation in kembali larangan impor kulit dari(3) Tiongkok design and product-finishing phases; absence dan of pengkajian wacana pembatasan kulit product standardization; and (4) lack ekspor of potential market targets. Externally,kesinambungan furniture subsectorpasokan; obtains guna memastikan its opportunities from (1) demand from traditional serta (2) Pemantapan koordinasi tripartit markets, such as Europe and America, which continues sehingga keputusan dalam hubungan industrial to flow; and (2) appreciationdapat for products, especially in seperti pengupahan memperhatikan medium pemangku and high-endkepentingan, categories. The biggest setiap termasuk challenges that furniture subsector faces are related to pengusaha. raw materials, especially regarding the existing boycotts of tropical timber, widespread practices of illegal Potensi Sub-Sektor Furnitur secara internal logging,Sub-sektor charge infurnitur, implementing Timber memiliki Legality Assurance antara Systemlain(Sistem Legalitas kekuatan berupa Verifikasi (1) Keberlimpahan Kayu/SVLK) which is not small; as well as reports the bahan baku kayu dan rotan, serta tenagaonkerja legalization serta of the exports of timber indan the form of logs terampil; (2) Keunikan konsistensi which would run the risk of diminishing the supply or kualitas produk. Kelemahan yang dihadapi increasing (1) theInefisiensi price of raw for furniture termasuk danmaterials produktivitas yang subsector. 4 rendah Furniture dalam produksi; Kekurangmampuan subsector (2) is predicted to perform a perajin menciptakan nilai tambah di tahap growth in production by 9.2%, 13%, and 17.7% desain dan penyelesaian produk; (3) Ketiadaan respectively for pessimistic, moderate, and optimistic standardisasi produk; increases serta (4) Keterbatasan scenarios, with expected in exports by 3.2%, target pasar yang potensial. Secara eksternal, 10.5%, and 18.7%. The respective scenarios are based sub-sektor furnitur memilikiGDPpeluang dari (1) on the assumption of national growth at 5.3%, Permintaan dari pasar seperti Eropa 5.6%, and 6.3%; world GDPtradisional increase by 3.6%, 3.8%, and dan Amerika yang masih terus mengalir; serta (2) 4%; as well as increases in exports prices by (5%), 0%, Apresiasi bagi produk yang khususnya and 5%. berkategori medium dan high end. Tantangan The study proposes several recommendations terbesar yang dihadapi sub-sektor regarding furnitur furniture subsector in the form of (1) minimization of berkaitan dengan bahan baku, khususnya institutional barriers to attract investment; (2) securing tentang keberadaan boikot terhadap kayu the availability of raw materials through monitoring of tropis, praktik pembalakan liar yang merajalela, illegal loggings, exemption of excessive charges, and by pungutan pengurusan Sistem Verifikasi Legalitas restricting exports of timber; effortsserta to expand the Kayu (SVLK) yang tidak (3) murah; wacana overseas market, for example by the support of Exports legalisasi ekspor kayu dalam bentuk log yang Buffer Agency (Badan Penyangga Ekspor); and (4) berisiko mengurangi pasokan atau meningkatprovision for labor regulations that enable productivity kan harga bahan baku bagi sub-sektor furnitur. improvement. Sub-sektor furnitur diprediksikan memiliki pertumbuhan produksi sebesar 9,2%, 13%, dan Conclusion 17,7% masing - masing untuk skenario pesimistis, Manufacturing which consists of diverse moderat, dan industry, pesimistis, dengan peningkatan subsectors, is heterogeneous; thus, changes in external ekspor diekspektasikan sebesar 3,2%, 10,5%, dan factors can produce different effects for each subsector. 18,7%. Skenario tersebut secara terurut Potentials of each subsector also diverse, where berlandaskan pada asumsiarepertumbuhan PDB some are promising enough to be directed as exports nasional sebesar 5,3%, 5,6%, dan 6,3%, booster while PDB othersdunia lack similar potentials. Therefore, peningkatan sebesar 3,6%, 3,8%, dan all forms of treatment need to be mapped out so that 4%, serta kenaikan harga ekspor sebesar (5%), 0%, the 5%. combined results of any intervention in dan manufacturing could proportionately reach Studi iniindustry mengajukan rekomendasi terkait every targeted indicator. As long the preconditions sub-sektor furnitur berupa (1) as Minimalisasi hamare met, there is no reason for the TPT, footwear, and batan institusional guna mengundang investasi; furniture subsectors to not develop as the leading (2) Pengamanan ketersediaan bahan baku sectors in Indonesian economy. melalui pengawasan pembalakan liar, dispensasi pungutan Bibliographyyang berlebihan, dan pembatasan eskpor kayu; (3) Pengupayaan perluasan pasar Outlook Industri Tekstil dan Produkdukungan Tekstil, AlasBadan Kaki, luar negeri misalnya dengan dan Furnitur Ekspor; serta (4) Penetapan regulasi Penyangga ketenagakerjaan yang memungkinkan peningkatan produktivitas. Kesimpulan Industri manufaktur yang terdiri dari beragam sub-sektor merupakan industri yang Furniture subsector is predicted to perform a Textile and Textile Products, Footwear, and Furniture Industries: Could They Continue to Develop? growth in production by 9.2%, 13%, and 17.7%