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Indonesian Furniture Industry Grows 8.04 Percent All

JAKARTA, KOMPAS.com – The Indonesian furniture industry is starting to show a growth trend even though the Covid-19 pandemic is not over yet. This also shows that the furniture industry has a high level of resilience.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the growth of the furniture industry in the first quarter of 2020 experienced a contraction of 7.28 percent. Meanwhile, in the first quarter of 2021, it started to rise by 8.04 percent.

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According to him, one of the factors influencing this growth is the shift in household spending from entertainment, tourism, and transportation to other sectors such as the need to organize houses.

“Online shopping activities during the pandemic also support increased sales of furniture, exports and the domestic market,” he said at the opening of the IFEX Virtual Showroom, Monday (20/9/2021).

Also read: Indonesian Furniture Products Earn IDR 2.6 Billion in Milan

This can be seen from the export performance in 2020 for the HS 9401-9403 series furniture products which improved with a value of 1.91 billion US dollars or around Rp. 27.2 trillion.

This figure increased 7.6 percent from 2019 which was worth 1.77 billion US dollars or around Rp. 25.2 trillion.

The biggest export destinations for Indonesian furniture last year were the United States (US), Japan, the Netherlands, Belgium and Germany.

“The market’s purchasing power for furniture and handicraft products is still high, we need to continue to respond by providing alternative access to product promotions, one of which is through the IFEX Virtual Showroom exhibition,” said Agus.

Agus conveyed that the opportunity for the furniture and handicraft market that continues to grow must be supported by the provision of the main production factors, namely raw materials, capital, and labor.

“Moreover, the raw materials for the furniture and handicraft industries in Indonesia are quite abundant. They come mainly from production forests which have an area of ​​68.8 million hectares,” he added.

The tropical climate in Indonesia is very favorable. Because, various types of trees can grow quickly.

Then Indonesia is a producer of 80 percent of the world’s rattan raw materials, where the rattan-producing areas in Indonesia are located on various islands, especially on the islands of Kalimantan, Sulawesi and Sumatra islands.

Agus added that the Government through the Ministry of Industry will continue to provide facilitation for the ease of doing business.

Such as facilitation of raw material logistics center, machine or equipment revitalization program, furniture polytechnic facilitation, furniture design development program.

Then, incentives tax holiday, tax allowance, super deduction tax for research and development (R&D) and vocational, application of SNI and SKKNI, TKDN, and facilitation of participation in national and international exhibitions.


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