Bali News

Handicraft industry in Bali is currently under strengthening pressures as result of global financial crisis and regional competition against new emerging producers such as Vietnam, Thailand, India, Malaysia, and China. Using traditional hand made production method, Bali is difficult to maximize production output compared to mass production supported by industrial technology implemented by competitors. The situation was exposed as a summary from the 2nd quarterly report of Bank Indonesia.

By statistic, growth in the second quarter of 2009 is predicted to be lower than the previous period. Prediction of 2nd quarter is only 4.03%, significantly lower compared to the previous period recording 11.08%. Decreasing pace of the growth is a result of global economic condition which remains under the shadow of pressure. Decreasing demand was responded by decreasing of production capacity in industrial sectors.

Fortunately the positive growth of tourism helps to support tourism industry, especially food, beverage, and wooden products. The growth was also confirmed by increasing electricity consumption as well as inquiries of new installations by commercial sector. However the main target market for the product in the 2nd quarter is domestic.

In respond to the weakening picture, the adviser of Chamber for Trade and Industry (Kadin), Jaya Susila, foresees as a challenge to work in a higher level of creativity. “Is it true that the decrease was caused by decreasing purchasing power of our international market, or because the quality of our handicraft products is inferior compared to competitors”, he said. He positively welcomes campaign of creative industry exposed by the government. However, the government needs to implement the plan into real actions. More than media propaganda, the government has to immediately elaborate strategic steps to create opportunities for small handicraft industry to grow.