The Bamboo and Rattan Sectors in Asia: an Analysis of ... - INBAR
The Bamboo and Rattan Sectors in Asia: an Analysis of ... - INBAR
The Bamboo and Rattan Sectors in Asia: an Analysis of ... - INBAR
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Laborers <strong>in</strong> the semi-process<strong>in</strong>g factories earn wages <strong>of</strong> approximately Rp 3 200/<br />
day. This compares poorly to the national st<strong><strong>an</strong>d</strong>ard <strong>of</strong> Rp 5 600/day. <strong>The</strong> Central<br />
Sulawesi process<strong>in</strong>g <strong>in</strong>dustry employs approximately 9 800 workers.<br />
<strong>The</strong> largest proportion <strong>of</strong> the semi-processed ratt<strong>an</strong> produced <strong>in</strong> Sulawesi is<br />
used <strong>in</strong> the h<strong><strong>an</strong>d</strong>icrafts <strong><strong>an</strong>d</strong> furniture m<strong>an</strong>ufactur<strong>in</strong>g <strong>in</strong>dustries <strong>in</strong> Java (for a discussion<br />
<strong>of</strong> this sector please see the Java case study below).<br />
<strong>The</strong>re is a high degree <strong>of</strong> vertical <strong>in</strong>tegration with<strong>in</strong> the PCS. <strong>The</strong> collectors<br />
work more or less as employees, paid on a piece-work basis by the traders. <strong>The</strong><br />
traders tend to have strong bus<strong>in</strong>ess relationships with regular buyers. In some cases,<br />
their function is more like a m<strong>an</strong>ager on behalf <strong>of</strong> a semi-process<strong>in</strong>g enterprise. In<br />
turn, the semi-processors are <strong>of</strong>ten partners or subsidiaries <strong>of</strong> the f<strong>in</strong>ished product<br />
m<strong>an</strong>ufacturers.<br />
<strong>The</strong> Indonesi<strong>an</strong> Furniture <strong><strong>an</strong>d</strong> H<strong><strong>an</strong>d</strong>icraft Association (ASMINDO) encourages<br />
l<strong>in</strong>kages among semi-processors <strong>in</strong> Sulawesi. It has attempted to exercise some control<br />
over their bus<strong>in</strong>ess. For example, the local ASMINDO pressured the Central Sulawesi<br />
government to impose a b<strong>an</strong> <strong>in</strong> 1991 on the export <strong>of</strong> unprocessed c<strong>an</strong>e from the<br />
isl<strong><strong>an</strong>d</strong> to other isl<strong><strong>an</strong>d</strong>s. This was devised as a me<strong>an</strong>s to cope with the uneven<br />
development <strong>of</strong> ratt<strong>an</strong> process<strong>in</strong>g facilities on Java <strong><strong>an</strong>d</strong> the outer isl<strong><strong>an</strong>d</strong>s (which<br />
cont<strong>in</strong>ued to act as raw material suppliers). Exceptions are made on specific requests,<br />
if the request<strong>in</strong>g export<strong>in</strong>g firm is a member <strong>of</strong> ASMINDO <strong><strong>an</strong>d</strong> has obta<strong>in</strong>ed its<br />
concurrence.<br />
<strong>The</strong> <strong>in</strong>dustry has ch<strong>an</strong>ged signific<strong>an</strong>tly over the years, partly <strong>in</strong> response to<br />
market forces, but ma<strong>in</strong>ly <strong>in</strong> response to deliberate policy ch<strong>an</strong>ges. A series <strong>of</strong><br />
restrictions on the trade <strong>in</strong> unprocessed <strong><strong>an</strong>d</strong> then <strong>in</strong> semi-processed c<strong>an</strong>e were<br />
implemented. This ch<strong>an</strong>ged the market structure faced by the c<strong>an</strong>e products. It also<br />
ch<strong>an</strong>ged the <strong>in</strong>centives to the process<strong>in</strong>g <strong>in</strong>dustry, <strong><strong>an</strong>d</strong> they responded by <strong>in</strong>creas<strong>in</strong>g<br />
domestic process<strong>in</strong>g capacity. However, while the ch<strong>an</strong>ges have resulted <strong>in</strong> <strong>in</strong>creased<br />
domestic value addition, the benefits <strong>of</strong> this value addition are not realized at the<br />
level <strong>of</strong> the producers.<br />
<strong>The</strong> most <strong>in</strong>fluential policy affect<strong>in</strong>g the Sulawesi ratt<strong>an</strong> PCS has been the<br />
nationwide imposition <strong>of</strong> b<strong>an</strong> on the export <strong>of</strong> unprocessed ratt<strong>an</strong> <strong>in</strong> 1979, <strong><strong>an</strong>d</strong><br />
subsequently on the export <strong>of</strong> treated (1986) <strong><strong>an</strong>d</strong> then on semi-f<strong>in</strong>ished ratt<strong>an</strong><br />
(1988). <strong>The</strong>se regulatory mech<strong>an</strong>isms were replaced <strong>in</strong> 1992 with a prohibitive<br />
export tax <strong>of</strong> US$10-15 per kg, which has the same effect. <strong>The</strong>re are also a number<br />
<strong>of</strong> other policies <strong>of</strong> the central <strong><strong>an</strong>d</strong> local governments that impact on the <strong>in</strong>dustry.<br />
<strong>The</strong> study identifies three clear periods <strong>in</strong> the history <strong>of</strong> the <strong>in</strong>dustry. Dur<strong>in</strong>g the<br />
first period, before the b<strong>an</strong> on the export <strong>of</strong> raw c<strong>an</strong>e, Indonesia as a whole<br />
exported a large proportion <strong>of</strong> her c<strong>an</strong>e production. Just before the b<strong>an</strong>, the figure<br />
was 87% unprocessed <strong><strong>an</strong>d</strong> semi-processed ratt<strong>an</strong>. About 13% was consumed by<br />
the domestic process<strong>in</strong>g <strong>in</strong>dustry <strong><strong>an</strong>d</strong> only 1.35% <strong>of</strong> the f<strong>in</strong>ished product was<br />
exported.<br />
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