Indonesia’s furniture exports could reach US$5 Bn by 2019

Two years from now, Indonesia could be shipping as much as US$5 Bn worth of furniture as demand in the United States, Japan, and Western Europe picks up, said Panggah Susanto, Director General of Agro Industries from the Ministry of Industry (Kemenperin).

Rattan furniture production is likely to go up as a result, since much of the furniture exported is made from this material. Indonesia currently exports is US$1.7 billion worth of furniture annually.

Domestic employment will also benefit, doubling to more than 200,000 jobs in a few years’ time.  

To boost rattan furniture production the Ministry of Industry is encouraging industry development and has plans to make Cirebon, a port city on the north coast of Java, one of the main centres for the rattan industry.

However, Indonesian furniture still face tough competition in the international market and is perceived to be made from illegal timber, according to the Association of Indonesian Furniture and Handicraft Industry (Asmindo).

To expand sales manufacturers must deliver innovative product designs and expand outreach to address these negative perceptions. Asmindo also highlights the potential of the domestic market on the back of a very active building sector. 

 

Source: ITTO