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Furniture Industry Exports Plummet in Q1 2023, Factories Cut Staff

Adi Ahdiat 14/06/2023 18:10 WIB

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During the first quarter of 2023, Indonesia's furniture industry recorded exports weighing 128,040 tons, a decrease of 32.42% compared to the first quarter of the previous year.

Indonesia's Furniture Industry Export Volume and Value, Quarter I (2022-2023)

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Furniture Industry Exports Plummet in Q1 2023, Factories Cut Staff

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Indonesia's Furniture Industry Export Volume and Value, Quarter I (2022-2023)

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Indonesia's furniture industry export performance weakened at the beginning of this year. According to data from the Central Statistics Agency (BPS), during the first quarter of 2023, the industry recorded exports weighing 128,040 tons, a decrease of 32.42% compared to the first quarter of 2022.

During the same period, the value of exports also fell by 32.97% to USD 573.61 million, with details as shown in the graph above.

This decline in performance occurred across all sub-categories of the industry. In the first quarter of 2023, the largest decrease in export volume occurred in the metal furniture industry (-50.85%).

Significant decreases in export volume were also experienced by the wood furniture industry (-34.37%), rattan/bamboo furniture (-29.12%), plastic furniture (-28.73%), and furniture from other materials (-20.25%).

The weakening performance of the furniture industry has triggered job cuts in several factories.

According to Anne Patricia Sutanto, Deputy Chair of the Indonesian Furniture and Crafts Industry Association (Asmindo), furniture companies have conducted layoffs (PHK) of 10% to 20% of their total employees.

Asmindo Chairman Dedy Rochimat stated that businesses and the government are continuously striving to restore the performance of the furniture industry by seeking new markets, considering that its main markets are experiencing a recession.

"We know that America is experiencing a recession, Europe is also in recession. But this is temporary, so we all have to do something, it was also mentioned earlier with Minister Teten (Minister of Cooperatives and SMEs), we are looking for new markets," said Dedy, as reported by *[Katadata.co.id](https://katadata.co.id/tiakomalasari/berita/645a084963f8c/permintaan-ekspor-furnitur-merosot-pengusaha-phk-hingga-20-karyawan)*, Tuesday (9/5/2023).

"The layoffs are temporary, they are happening because the market is shrinking. But later, we will hire again," he said.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Furniture Industry Exports Plummet in Q1 2023, Factories Cut Staff

Furniture Industry Exports Plummet in Q1 2023, Factories Cut Staff

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Furniture Industry Exports Plummet in Q1 2023, Factories Cut Staff

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