Furniture industry processes raw materials or semi-finished materials from wood, rattan, and other natural raw materials into finished furniture products that have higher value and benefits. The furniture industry in Indonesia is spread in almost all provinces, with large centers located in Jepara, Cirebon, Sukoharjo, Surakarta, Klaten, Pasuruan, Gresik, Sidoarjo, Jabodetabek, and more.
Generally, the wood processing industry divided into two groups: the upstream wood processing industry group and the downstream wood processing industry group. The upstream wood processing industry group is a primary wood processing industry, which processes logs to various wood sorts. On the other hand, the downstream wood processing industry group is an industry that produces a variety of wood products including dowels, molding, doors, windows, wood-flooring, and the like. There are several main export destinations for the Indonesian furniture industry, including America, Europe and Japan.
As a furniture manufacture country, Indonesia has great potential in the export market. What is the potential?
Indonesia is the 8th largest furniture exporting country for the United States. Interestingly, in the midst of the Covid-19 pandemic, exports of furniture products actually increased significantly by 5.13 percent. There are several states in the United States that recorded to import furniture with large values, such as the West Coast of the United States, including Arkansas (456 percent), Montana (216 percent), and New Mexico (213 percent). Currently, the concentration of furniture exports from Indonesia to the West Coast of the United States is to California, Georgia and Texas.
The Indonesian furniture industry has a prospective market to Canada. Wooden furniture will be one of the booming products in the Canadian and US markets after the Covid-19 pandemic subsides. Despite the huge potential, Indonesian furniture exports are still faced a number of challenges, including the scarcity of containers and rising container prices.
Apart from America and Canada, the Indonesian furniture industry also has markets in Germany and other countries in Europe. This potential proves that Indonesian furniture products are not only for the German market, but also for the world market from various countries, both from mainland Europe, America and even the Middle East. Indonesian furniture products have the potential to become a market leader in the world. This is because the furniture products offered by Indonesian craftsmen have good designs and quality that can meet the tastes of the European and international community.
–sh
