Great Potential of Central Kalimantan Rattan for Policy

Central Kalimantan is rich in rattan. However, this potential has not been properly exploited, partly due to policy issues. Downstreaming is needed to increase the enthusiasm of Kalimantan rattan again.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI.

KOMPAS/DIONISIUS REYNALDO TRIWIBOWO

Minister of Cooperatives and Small and Medium Enterprises Teten Masduki gave a speech when opening the National Movement of Proud of Indonesian Made Products, Proud of Tourism in Indonesia held in the city of Palangkaraya, Central Kalimantan, on Friday (14/7/2023).

PALANGKARAYA, KOMPAS - The potential of rattan in Central Kalimantan is being reconsidered as an exporting region. Out of a potential of 10,000 tons per month, only 1,000 tons are absorbed by the furniture market in Java. The ban on exports policy remains a problem.

Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki, conveyed this during the opening of the National Movement Proud of Indonesian Products, Proud of Tourism in Indonesia held in Palangkaraya, Central Kalimantan on Friday (14/7/2023). The activity was organized by Bank Indonesia. Also present at the event was BI Governor, Perry Warjiyo.

Teten revealed that the potential of rattan in Central Kalimantan reaches up to 10,000 tons per month, but the absorbed amount is no more than 1,000 tons. Many factors contribute to this low absorption, one of which is the policy prohibiting exports.

"I also discussed this matter with the Vice Governor of Central Kalimantan yesterday. He has to meet the President and talk about the policy. (Export tap) This must be reopened, maybe not for raw materials, but for semi-finished products," said Teten."

KOMPAS/DIONISIUS REYNALDO TRIWIBOWO

Rattan shoots or young rattan are one of the local foods found on the island of Kalimantan. Residents of Bukit Sua, Palangkaraya City, Central Kalimantan, identified the distinctive local food of the Dayak on Thursday (17/2/2022).

According to Teten, rattan in Central Kalimantan has been absorbed by furniture industry from Cirebon, West Java, as well as entrepreneurs in Central Java and East Java with an absorption rate of less than 20 percent of the actual potential. A breakthrough is needed both in terms of policy and from community groups in Central Kalimantan.

"There needs to be breakthroughs so that the community continues to maintain their rattan and not encroach into forests, so (from the potential of rattan) it is also a matter of wider scope," said Teten.

According to Kompas records, Katingan Regency is one of the areas with the greatest potential in Central Kalimantan. In Katingan Regency, the distribution of rattan reached 30,126 hectares with a yield of 241,008 tons of wet raw rattan once harvested.

There is only one group of rattan farmers who have been verified by the Forest Stewardship Council (FSC), a global multi-stakeholder organization, namely the Katingan Rattan Farmers Association (P2RK). The group only has a managed area of 690 hectares with a potential of 10-20 tons per hectare.

“In the past, those who bought more raw, ordered a lot. I still remember we made this house, yes, from selling rattan. Now almost none have ordered, the price is also so-and-so,” said Yakobus (48), a resident of Hampangen, Katingan Regency.

"Innovation is needed to ensure that the community continues to preserve their rattan and not encroach into the forests, therefore (regarding the potential of rattan) it is also a matter of wider development."

Yakobus has been a rattan farmer for almost 15 years, starting from cultivating rattan until now becoming a rattan collector. According to him, for almost 12 years the rattan price has not improved. Currently, the price of dried raw rattan is only around IDR 1,300 to IDR 1,500 per kilogram. The normal price, added Yakobus, should be around IDR 2,500 to IDR 3,000 per kilogram.

Also read: Spirit of Sustainability of Central Kalimantan Rattan Craft

Downstream

Teten Masduki also conveyed President Joko Widodo's direction to encourage a local area-based downstreaming program of superior products. He mentioned that downstreaming is a government effort being carried out to lead Indonesia to become an advanced country.

"We need to prepare quality jobs so that per capita income increases. The target is for the per capita income to reach 12,000 US dollars per year by 2045," he said.

Rattan, according to Teten, is one of the commodities that its downstream industry needs to be continuously pushed. Rattan needs to be developed into various semi-finished or finished goods. "There are already world-class expensive bags made of rattan even though they are mixed with other materials, this is a potential that needs to be seen," he said.

KOMPAS/DIONISIUS REYNALDO TRIWIBOWO

Some of Handep's products were exhibited through a sustainable trunk show in Palangkaraya City, Central Kalimantan, Saturday (5/9/2020). Beautiful models demonstrated a variety of modern rattan woven products.

The Governor of Bank Indonesia, Perry Warjiyo, explained that there are three keys to improving the economy today, namely innovation, digitalization, and synergy. Synergy needs to continue to be developed between the central and regional governments, as well as business players ranging from micro, small, and medium-sized enterprises (MSMEs) to large business players.

"There needs to be a spirit of synergy among all parties, one of which is by proudly buying and owning Indonesian-made products, as well as traveling to Indonesia," said Perry."

Also read: Crying on Upstream, Screaming on Downstream