Product value from large and medium furniture manufacturing Indonesia 2020-2023

In 2023, the value of goods produced from the large and medium-sized furniture manufacturing industry in Indonesia amounted to about 37 trillion Indonesian rupiah, indicating a sharp decrease from the previous year. Within the observed period, the value of goods produced by this industry peaked in 2021 at approximately 61 trillion Indonesian rupiah.

How big is Indonesia’s furniture market?

With strong support from the government, the furniture manufacturing industry in Indonesia has managed to grow at a steady pace in recent years. The industry is expected to expand to more than 4.2 billion U.S. dollars in annual revenue by 2028 from 3.1 billion U.S. dollars in 2023. With major furniture export destination markets including the United States, Japan, and the Netherlands, the industry has made a significant contribution to Indonesia’s national trade balance. To further boost growth, the government has encouraged furniture companies to establish cooperative relationships with foreign companies and enter new export markets to strengthen their presence in the global arena.

What are the challenges faced by Indonesia’s furniture market?

Indonesia’s furniture manufacturing industry has faced constant production challenges due to a shortage of raw materials caused by illegal logging and timber trade. With the implementation of the Timber Legality Assurance System (SVLK), the government aims to stop these illegal practices and increase the supply of raw materials for this industry. In addition, Indonesia faces a high demand for imported furniture products as it prioritizes exports over meeting domestic market demand. In 2022, the majority of Indonesia’s imported furniture came from China, with a value of around 300 million U.S. dollars.