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Equipped with wide array of raw materials spread out in numerous sourcing centers, Indonesia has proven to be one of the best rattan basket manufacturers in the world. Aware of this, Marselinus Silimalar founded Seloagro in 2010. Initially, Seloagro started as a purely domestic furniture manufacturer. In 2012, Seloagro received its first order directly from European customer and has been started its own export until now.

Rattan baskets manufacturer and exporter 2
Workers are working in Seloagro’s Factory located in Curug, Tangerang, West Java, Indonesia.

Prologue

Equipped with wide array of raw materials spread out in numerous sourcing centers, Indonesia has proven to be one of the best rattan basket manufacturers in the world. Aware of this, Marselinus Silimalar founded Seloagro in 2010. Initially, Seloagro started as a purely domestic furniture manufacturer. In 2012, Seloagro received its first order directly from European customer and has been started its own export until now.

Rattan baskets manufacturer and exporter 1
Marselinus Silimalar, CEO of Seloagro, Rattan baskets manufacturer and exporter.

Why rattan basketware?

While Indonesian rattan industry was at low point as well as weakening of Rupiah, Seloagro managed to quickly adapt its strategy to the circumstance by grabbing overseas buyers. In the beginning, the company started around six employees, as orders increase and business grow, employees grow quickly up to fifty, and at presence expand even up to hundreds. Seloagro is located in Curug Tangerang, West Java, quite strategic location being near to the harbor and the airport.

Seloagro has its focus on natural rattan material for furniture and basketware products. Materials are sourced from Borneo (Kalimantan) and Sumatera. Rattan materials used for basket weaving are white kubu, grey kubu, croco, lacak, slimit, fitrit or rattan core. Other materials may be used for combination such as natural fibers or wood.

According to Silimalar, in doing the business, he prefers to sell basketware rather than furniture. Furniture consume more space in the container, if one item among the consignment is rejected, the whole lot has to be returned. The risk is higher and costly. Unlike furniture, basketware products can be loaded in larger quantities. If one item is rejected, product can be return in a piece and cost less. Rattan materials have been used for basketware products because they are light weight, durable and eco friendly.

Most popular baskets are flower baskets, bicycle, hamper & gifts, storage and trunk baskets. Most of bike’s baskets are exported to Europe with 60% of production capacity.
For indoor and outdoor furniture, Silimalar uses materials such as rattan, wood, and any other natural materials.

Indonesia International Furniture Expo
Seloagro booth at Indonesia International Furniture Expo (IFEX) 2015

Key points

Price competitions among suppliers maintain one of the challenges faced by Seloagro. Within the industry, there are many other suppliers’ offers the same products with lower prices. They eager to compete and slash down prices just to get the orders in.

Silimalar believes that Indonesian basketware industry has performed better than previous years. Therefore, there are great opportunities for basketware suppliers to grow even more. In order to expand its business overseas, Seloagro has done some international expos and explore other marketing strategies. By joining Export Assistant Porgram (EAP) from Hinrich Foundation (HF), Silimalar confidence that Seloagro will further extend its network to potential buyers.

Accomplishment

Seloagro has been growing from just a local rattan supplier to a more established manufacturer and exporter. Among Seloagro’s favorite buyers are: Australia, New Zealand, South Africa, Asia, UK and Europe.

About the author – Emerela Puspita

EAP-Hinrich happenings-Hong Kong trade show blog-Blog Picture_Emerela

Emerela is based in Jakarta, as an Export Consultant for Hinrich Foundation. She works closely with Indonesian exporters for the Developing Country Export Assistance Program.

Emerela has a Master’s degree in Business Administration from Swinburne University of Technology in Melbourne, Australia and a Bachelor’s degree in Economics and Management from Pancasila University in Jakarta, Indonesia.

Equipped with her international experiences, she fully supports Indonesian suppliers to advance and promote sustainable global trade.