Craft & Culture

BALI EXPORTS

2009 was considered by island-based businesses a dreadful year for exports. Fortunately, things began to get brighter the following year.

After the impact of the global financial crisis in late 2008, Bali's craftsmen and exporters are now able to breathe with relief. International trade has gradually progressed. Of the overall exports of Bali, crafts still occupy the first position.

Most of the island's population earns a livelihood as farmers. In Gianyar, farmers have an additional source of income–working on handicrafts. A father after working in the fields, a mother after finishing off her household work and the kids after school, can often be seen diligently working on a piece of wood with a chisel or brush and paint.

Typically, Balinese people do not demand much and always see that there are two sides of everything, and this somehow drives them into diligence. Their orientation is not merely gaining profit but how to utilize their free time in generating additional revenue. After all, that revenue could eventually be used to complement their daily needs.

The driving force of crafts in Bali involves mostly households or small cottage industrial groups. The Bali local government acknowledged that 65% of the exports of handicrafts in Bali is produced by these small groups.

It is no wonder why the big industrials and machines are not much involved, because when viewed from its literal meaning, handicrafts are items produced by hand or other direct human endeavors. These items are goods that are generally of high artistic value and are able to garner the interests of many. Doing crafts requires perseverance and taste, which normally cannot be accomplished in bulk and by mechanical means.

From year to year, data indicates that crafts have always occupied the first position of the exports from Bali, followed by industrial and then agricultural products. The government identifies at least 16 materials that are incorporated in the handicraft category namely: bone, wood, metal, stone, bamboo, silver, candles, ceramics, furniture, rattan, terracotta, leather, shells, weavings, paintings and musical instruments.

Balinese arts and crafts have long been renowned internationally. It should be recognized that colonialism and the arrival of foreigners into Indonesia have provided a positive aspect to the life of the Balinese.

When Rudolf Bonnet and Walter Spies came to Bali, they were fascinated with Balinese painting. Bonnet also took part in motivating and promoting the carved statues of the village of Mas in Ubud abroad. Gradually, Balinese arts and crafts gained fame in other countries.

In the 1930s, the Dutch government founded the Bali Hotel in Denpasar–the first hotel in Bali. It signified that Bali was regarded as a promising tourist destination. From this moment on began the large numbers of tourist arrivals and length of stays.

This was a golden opportunity well received by local residents. A number of art shops began popping up around the hotel. They took crafts from the villages and sold them in the art shops. The natural beauty, cultural and artistic tastes came into synergy to build the image of Bali's tourism and a beautiful 'island of the gods'. Bali began to be widely known and more and more people became interested to visit.

The trade of Balinese handicrafts, which then only took place within the island, developed into inter-island and international trade. Statistics show that international trade in crafts always occupies first position. In other words, what items are most sought by people from Bali? Its crafts!

Along the way, the market has experienced its ups and downs. In late 2008 a recession hit the US and it was feared that a global recession would follow. Businessmen worried that it would have an astounding affect on their businesses.

In Bali it was proven that the financial crisis did affect exports. In 2009 the head of the Department of Industry and Trade in Bali announced that there had occurred an impairment in export numbers. The decrease mainly occurred in industrial products and handicrafts.

Desmond James, the director of the trading company Sourcing Bali, said that 2009 was a dreadful year for exports - overall business was down 25-40%. Trading companies particularly felt this impact because they are in direct contact with producers and consumers abroad.

Thankfully things got better the following year. The government announced that export values in the first three months of 2010 showed an increase. Demand began to appear and craftsmen were once again enthusiastic.

Currently the largest market is Japan, followed by Hong Kong, Singapore, America and Europe. Their requests vary but the most popular variety of all types of crafts is furniture and wooden items.

The global crisis was a test in the global market. Another threat is the competition between countries. Amidst the enthusiasm of the export market, there is now an emerging anxiety namely the China-ASEAN Free Trading Area (CAFTA). This agreement removes protection for local products. China is now dubbed the dragon emerging from Asia. Very aggressive in their market, they are able to make large quantities of products and the prices are very cheap.

Competition is natural in business. One side says we'll be able to face this competition if we put in much effort, but there are others very pessimistic of China's loom. But one thing that must be recognized, as expressed by James, is that Bali and Indonesia has already lost a great deal of market share to China.

Price is one factor taken into consideration by purchasers. Cheap products tend to cause high demands. But there is one thing that is unaffected by price, and it is art.

In Bali, arts and crafts have a thinly distinguishable boundary. When art is imitated and mass-produced, it is automatically considered craft.

The Balinese people are born with natural artistic talents. Since childhood they have been familiar with art activities, as they mingle with fellow artists and learn about arts and even study art before they start their formal education.

Products from Bali may not be produced at the lowest costs, but it still has more value than those from other countries. When in the beginning the Balinese based their products on old designs, now they're able to adjust to modern designs or combine them to make it look unique. Design is what is worth more in that it cannot be measured in currency.

If China can produce goods in very large amounts, Bali's advantage lies in its ability fill orders in small amounts and with a great variety. Something China cannot.

In an analogy, it's like an ant against an elephant. Physically at a glance, elephants are certainly much bigger and more powerful than ants. But as taught in the traditional games of Indonesia, ants are believed to be able to beat elephants. The ants go into the elephant's ear and paralyze the elephant from inside. In this case, it is how to empower the small businesses to compete with an economic giant like China.

In a conversation with James, he gave the opinion that the government is expected to help small businesses deliver their products into the market. "Accreditation should be given to market leaders, to help the brand with their products and promote Bali, 'Made in Bali'. They should provide financial support with trade shows, catalogs, sales missions, etc. as this will help to ensure Bali's famous handicrafts and furniture industry will remain well known in the global market place. Financial grants should be given to local entrepreneurs who have the skill but not the capital to expand. This has proven very successful in other emerging markets," he said.

Another thing to note is the matter of determining the tax of large and small employers. Tax is required to drive the economy. But when the tax is applied unwisely it can burden small businesses and hinder their development. Economic growth would be slowed down.

Beautiful nature, quality products, a friendly and diligent people behind them are apparently not enough in a trade scene. An integral effort is required to promote export products in Bali. «»

Text by Ni Luh Dian Purniawati
Photos courtesy Sourcing Bali