An Economic Study for Rattan Industry from Raw Materials to an Enhancement of Products Development

Abstract

As a cellulosic non-wood material, rattan is commonly associated with luxury items and used as a material for wicker, craft, and furniture manufacturing. During the processing of rattan for furniture and related products, these activities generated approximately 40-50% of waste. For sustainability development in this industry, the stages of the rattan processing were investigated for small and medium enterprises’ marketing setup. This study conducts an exploratory on three primary stages in the rattan industry in order to reduce waste and at the same time created another industry for rattan itself. The waste can be repurposed and converted into other products, generating additional revenue for the industry. Forecasted monthly profits for the three major rattan industries were 18.0%, 23.0%, and 16.5%, respectively, for raw rattan processing, rattan core and skin industry, and rattan furniture industry.