The Indonesian government plans to improve the quality and competitiveness of furniture industry products in an effort to reach a wider export market. The furniture industry is a labor-intensive sector that makes a major contribution to Indonesia’s export progress. Currently, the furniture industry is able to absorb a workforce of more than 143 thousand people and there are 1,114 thousand business units incorporated in it.
The GDP growth for the Indonesian furniture industry shows brilliant achievements in 2021 of 8.16% and 0.21% in 2022. The average utilization of the furniture industry tends to be stable with the latest data in December 2022 recording the utilization of the furniture industry at 74.16%. The furniture industry has potential market of USD 500 billion, while the projected potential, based on the World Furniture Account Federation, is about USD 700 billion with growth of 6%-10%.
Over the past five years, the export performance of the Indonesian furniture industry has continued to increase by 77.9%. The value of furniture exports in 2021 reached USD 2.8 billion, get increase 33% compared to 2020. In 2022, exports of the wood and rattan furniture industry were observed to be stable at USD 2.9 billion. The government is targeting growth in the furniture industry of USD 5 billion in 2024, so it is necessary to take several strategic steps such as increasing exports and import substitution. In addition, it is hoped that more furniture products will be sold on Indonesian e-commerce platforms. The government will encourage to increase the furniture industry exports through various strategic efforts.
The furniture industry in Indonesia faces several challenges, such as the availability of raw materials, product design innovation, creation art to match the market demand, increasing the competence of human resources, and utilizing appropriate technology, especially related to environmental sustainability.
Regarding sustainability and good forest management, it is important for the government and the community to ensure that the wood obtained comes from forests that managed properly and in accordance with applicable laws and regulations. In this case, sustainable forest management must be a top priority.
In the long term, sustainable and responsible forest management will provide greater benefits for the environment, society and the economy. Besides able to help protect biodiversity and maintain forest functions, good forest management can improve the quality of people life around forests and provide sustainable economic opportunities for them.
–sh
