Executive Summary

Key insights and market outlook

Indonesia's furniture industry is projected to reach US$6 billion in exports by 2026, up from current US$2.5 billion, driven by improved financing access, consistent fiscal deregulation, and targeted export incentives ¹

. The Indonesian Furniture and Handicraft Industry Association (HIMKI) and the Indonesian Chamber of Commerce (Kadin) are pushing for supportive policies to achieve this growth, which could create 500,000 formal jobs and boost production capacity by 40-50% ¹².

Full Analysis

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Deep Dive Analysis

Indonesia's Furniture Industry Aims for US$6 Billion Exports by 2026

Ambitious Growth Projections

Indonesia's furniture and handicraft industry is targeting a significant export growth, with projections reaching US$6 billion by 2026, more than double the current US$2.5 billion export value ¹

. This ambitious target is backed by the Indonesian Furniture and Handicraft Industry Association (HIMKI) and supported by various stakeholders including the Indonesian Chamber of Commerce (Kadin) ².

Key Growth Drivers

The projected growth is expected to be driven by several key factors:

Improved financing access for industry players
Consistent fiscal and customs deregulation
Targeted export incentives to boost competitiveness
Industrialization based on domestic natural resources like rattan

Economic Impact

Achieving this target is expected to have significant economic benefits:

Creation of 500,000 formal jobs in the industry
40-50% increase in national production capacity in the medium term
Stronger positioning in the global furniture market, currently valued at US$300 billion

Government and Industry Collaboration

Kadin has been actively engaging with government officials, including meeting with Finance Minister Purbaya Yudhi Sadewa to discuss supportive policies and incentives for the industry ²

. The association is pushing for:

More competitive financing options for exporters
Consistent regulatory framework to support industry growth
Strategic export promotion initiatives

Challenges and Opportunities

While the target is ambitious, industry leaders believe it is achievable with the right policy support. The current export value of US$2.5 billion represents only about 0.83% of the global furniture market, indicating significant room for growth ¹

².

References