Indonesia can become a trendsetter in the development of eco-lifestyle furniture. Therefore, the Indonesian government hopes that small and medium industry businesses (IKM) for furniture and crafts can continue to follow global market trends and actively innovate, and what is important is to maintain environmental sustainability in their supply chains.
The tropical climate in Indonesia has great potential for the development of furniture and craft industry. This is because Indonesia has the advantage of various types of wood raw materials, as well as rattan and bamboo raw materials. Through the strength of the raw materials and supported by unique and attractive designs, the government is optimistic that Indonesian furniture products have high value and are able to compete in the global market.
The Indonesian government continues to facilitate those small industries in the furniture and craft sector to present at national and international exhibitions in order to expand market access and business networks for them. One of the exhibitions is the 2023 Indonesia International Furniture Expo (IFEX) and the 2023 Jogja International Furniture and Craft Fair Indonesia (JIFFINA).
In addition to facilitating national and international exhibitions, the government also implemented various policy instruments in order to develop the furniture and craft industry, including facilitating raw material logistics centers, machine and equipment revitalization programs, and facilitating furniture polytechnics. The government is running a furniture design development program, tax holiday incentives, tax allowances, and a super deduction tax for R&D and vocations. There is also the application of SNI and SKKNI as well as issuance of TKDN certificates.
The five biggest furniture importer countries in the world are the United States, Germany, Britain, France, and the Netherlands, which have a total import value of US$145.3 billion. Despite the large value, the economic slowdown in the export destination countries has become a challenge for furniture and craft SMEs.
–sh
