Indonesian Furniture Industry Eyes 2026 Export Recovery

Industry Outlook and Challenges

The Indonesian furniture and craft industry is cautiously optimistic about export recovery in 2026, driven by expectations of global monetary easing and improving consumer sentiment ¹

. According to Abdul Sobur, Chairman of HIMKI, the industry is currently in a stabilization phase with production capacity adjusted to meet sluggish global demand.

Current Market Conditions

Export performance has remained relatively stagnant compared to the previous year, with producers maintaining cautious capacity utilization. The industry has not yet entered an expansion phase due to incomplete global demand recovery. However, there are positive prospects for products with high value-added, sustainability features, and design elements ¹

.

Policy Support and Industry Initiatives

HIMKI is advocating for regulatory reforms and incentives to support export growth. Key proposals include more competitive financing options for industry players and enhanced industrialization based on domestic natural resources such as rattan ²

. These measures are considered crucial as the furniture industry is both labor-intensive and capital-intensive.