Indonesia Furniture Industry Thrives on Natural Resources

Makers use a wide variety of wood and nonwood forest products that can be sourced domestically.

Many Indonesia furniture manufacturer especially from Jepara Central Java use teak and rattan.

Indonesia furniture manufacturer offer ornate antique reproduction pieces and modern minimalist designs in various materials. The country was one of the top 15 exporters of furniture in 2016, having sent abroad about $1.09 billion worth of products under HS code 9403, according to data extracted from the DESA/UNSD, United Nations Comtrade database.

A key factor in making the industry one of the world’s major suppliers of furniture is the domestic availability of raw materials. For one, Indonesia is the world’s top producer of rattan, accounting for over 80 percent of the global supply. Among the major sources of rattan in the country are Kalimantan and the islands of Sulawesi and Sumatra.

Indonesia is also home to various timber species, including teak, meranti, keruing, kapur and mersawa. Wooden furniture and other timber products from Indonesia are required to meet the requirements of the Sistem Verifikasi Legalitas Kayu (SVLK), the country\’s timber legality assurance system (TLAS), which assures buyers that the material used was obtained legally.

In November 2016, Indonesia became the first country to issue Forest Law Enforcement, Governance and Trade (FLEGT) licenses as a result of a Voluntary Partnership Agreement (VPA) with the EU. FLEGT-licensed products automatically meet the requirements of the EU Timber Regulation (EUTR). Importers of such items in member states can place the products on the market without the need to conduct further due diligence.

Suppliers intensify marketing efforts

To reach more markets, furniture makers are intensifying online marketing efforts, using free or paid business-to-business platforms. They are also participating in local and international trade shows and joining events held by trade associations.

One of the trade shows for furniture makers is the Indonesia International Furniture Expo (IFEX). IFEX, held in Jakarta, is hosted by the Indonesia Furniture Industry and Craft Association (HIMKI) and organized by PT Dyandra Promosindo. It is supported by the Ministry of Trade, the Ministry of Industry, the Ministry of Small-Medium Enterprise and the Ministry of Tourism.

North America and the EU remain key markets, but suppliers also intend to enter or strengthen their foothold in non-EU countries, South and Central America, Africa, the Middle East and the Asia-Pacific region. Several plan to expand their domestic clientele as well.

This article and its contents are provided by the Hinrich Foundation, a partner of Global Sources in promoting trade across Asia. The products and the suppliers featured in this article are export assistance program beneficiaries of the Hinrich Foundation.