Java Furniture Makers: Winners or Losers from Globalisation? Lienda Loebis, Ministry of Industry and Trade, Jakarta

Who loses and who gains from globalisation is one of the big questions of our time. The people of East and South East Asia were thought be among the winners until the financial crisis hit this region in 1997. Indonesia, it seemed, suffered particularly badly with millions of people sinking into poverty. However, it became clear soon after that some parts of Indonesia had actually benefited from the crisis. The sudden and large depreciation of the Rupiah raised the export competitiveness of local enterprises overnight. Agro-processing was one of the sectors that benefited most because it used local materials and required low levels of foreign currency as a result. The furniture industry of Central Java is a good example, it grew rapidly in the wake of the crisis.