Indonesian Furniture Exports Weaken, Both Wood and Plastic

Based on data from the Central Statistics Agency (BPS), Indonesia's furniture export performance weakened in the first half of 2023.

During the first half of this year, the total volume of national furniture exports reached 253,500 tons, down 26.2% compared to the first half of 2022. In the same period, the export value also decreased by 30.9% to US$1.07 billion.

Broken down by material, in the first half of 2023, the largest export value came from wooden furniture, reaching US$731.1 million.

However, this achievement was down 31.9% compared to the first half of last year, where the export value of wooden furniture reached US$1.07 billion.

The decline in export value also occurred in furniture made from other materials (-15%), rattan/bamboo furniture (-40.5%), metal furniture (-42.4%), and plastic furniture (-30.3%), with nominal details as shown in the graph.

This occurred in line with the decrease in the export volume of wooden furniture (-29.74%), other materials (-11.61%), rattan/bamboo (-32.2%), and metal (-51.9%).

Meanwhile, in the first half of 2023, the export volume of plastic furniture increased significantly (+42.1%), but its export value still fell, indicating a price drop in the market.

According to President Jokowi, the overall decline in furniture industry exports is due to weak international partnerships.

"In my opinion, (the decline in exports) is because we don't have partners; other countries are partnering with each other. Therefore, we must be open and willing to partner with furniture companies from abroad," said Jokowi while giving a speech at the IFFINA Indonesia Meubel & Design Expo, ICE BSD, Tangerang, Thursday (14/9/2023).

Jokowi also encouraged furniture industry players to include their products in the government's e-catalog to expand the domestic market.

"If we combine with the State Budget (APBN), Regional Budget (APBD), and State-Owned Enterprises (BUMN), our (furniture) spending has reached Rp1.236 trillion. That's not just furniture. Furniture is almost US$1.1 billion, and much of it is filled with imported furniture," said Jokowi.

"This means the ball is in your court to partner and take the domestic market," he added.