Perpustakaan Digital ITB

condition was worsened by the global financial crisis that begins in 2008. This crisis affects much to this industry which has a high level of national employment. Beginning with the crisis in United States, the export of rattan has decreased into approximately 50% in 2008. Ironic that Indonesia as the highest rattan supplier who produces 80% - 90% world’s rattan loses in the export of rattan furniture than other countries. Other countries who are even not the rattan producers can export more rattan furniture than Indonesia. Indonesia only holds the market share 2.9% with growth 7% per year. The research used exploratory research which consists of literature study, secondary data, and experts in-depth interview. This research has been designed to see the key factors that affect to the product development of rattan industry and explore the idea to improve the product development of rattan products from the marketing side. For further, the author presents a set of marketing approach in product development methods for Indonesian rattan industry in order to be survived in international market. The data analyses show some key factors that affect the product development of rattan industry in Indonesia. They are macro environment, government policy, market segmentation, research and development, and human resources. The author recommends to the stakeholders of this industry, especially producers, government, and national association, to: (1) revise the government policy which contains the legacy of exporting raw rattan materials that has given bad impacts to the growth of the rattan industry in Indonesia; (2) shortcut the distribution via commercial intermediaries by opening national representatives in the targeted countries in order to get higher margins for the industry; (3) build research and development center to adapt with the rapid market; (4) open local market because there is a good opportunity for the local market; (5) set trends for furniture that can stimulate the market to consume furniture more frequently.