The Bamboo and Rattan Sectors in Asia: an Analysis of ... - INBAR

Constraints and opportunities
In this case, government policies have clearly disadvantaged the raw material
producers. Policies designed to help the rattan products manufacturing industry ---including
export restrictions on raw rattan, semi-processed rattan, and even on finished
products ---- have reduced the demand and consequently the market price for the
rattan grown in the gardens of Kalimantan.
Moreover, policies intended to help conserve wild rattan resources, such as cutting
permits and transportation permits, have been equally applied to cultivated rattan
also, causing further disadvantage to the rattan farmers. To a certain extent, the
policies have succeeded in terms of stimulating domestic processing capacity, though
raw material production has suffered. In the case of the rattan gardens, prices have
dropped below the point where rattan cultivation is an attractive option except in
areas with very easy access. Even in these areas, alternative opportunities (such as oil
palm cultivation) threaten to displace rattan gardens. Yet, the economic and
ecological benefits of rattan cultivation within a shifting cultivation system
indicate a need for actions that support rattan cultivation. Also, the rattan products
industries are very important income and employment generators. A swing too
far in terms of reduced raw material production could have a devastating effect
on the industry.
It will be important to take steps to increase the bargaining power of the rattan
producers, and to increase the profitability of their enterprise. Some of the options
are to:
1. Reduce export taxes/restrictions to open up a larger market for rattan, raw
and semi-processed;
2. Encourage the formation of farmer cooperatives or other collective bargaining
organizations, which could also serve as the forum for extending improved technology;
3. Develop and extend improved cultivation, harvesting and post-harvest
technologies to increase productivity, reduce costs and improve the quality of
cultivated rattan;
4. Select and improve appropriate large-diameter clustering rattan species suitable
for small-scale cultivation.
5. Improve the quality and availability of market information, especially to smallscale
growers and traders.
19 By Hariyatno Dwiprabowo, Setiasih Irawanti, Rahayu Supriadi and B.D. Nasendi (Forest Products
and Forestry Socio-economic Research and Development Center, Bogor, Indonesia).
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