Deputy Minister of Industry Faisol Riza recently announced a significant development in the Indonesian government’s efforts to bolster the furniture industry. The government is set to ease regulations in a bid to support the growth of this vital sector, enhance its competitiveness, and expand its global footprint. This move comes as part of a broader strategy to ensure that the furniture industry is well-equipped to navigate the challenges of the global market.
Regulatory ease emerges as a crucial pillar in the government’s plan to prop up the furniture industry, which currently faces various hurdles in the international arena. Deputy Minister Riza emphasized the pivotal role of regulatory support in strengthening and advancing both the furniture and craft sectors within Indonesia. Speaking at the 2025 Indonesia International Furniture Expo (IFEX) in Jakarta, he underscored the government’s commitment to providing the necessary regulatory framework to facilitate industry growth.
Despite the challenging global economic landscape, Indonesia’s non-oil and gas manufacturing industry remains robust, with a steady growth trajectory. In 2024, the manufacturing sector contributed approximately 17.16 percent to Indonesia’s Gross Domestic Product (GDP), representing a 4.7 percent increase from the previous year. The sector also witnessed a surge in employment, with nearly 19.96 million workers actively engaged in manufacturing activities, signaling positive momentum in the industry.
Indonesia’s Manufacturing Value Added (MVA) reached USD 255 billion in 2023, positioning the country as the 12th largest globally in this aspect. Among ASEAN nations, Indonesia boasted the highest MVA, underscoring its significant manufacturing capabilities. Notably, the Purchasing Manager Index (PMI) for Indonesia in February 2024 soared to 53.6, reflecting substantial growth compared to the same period the previous year. The Industrial Confidence Index for the country also saw a notable uptick, registering at 53.1, indicative of a rising sense of optimism within the industrial sector.
In the realm of domestic furniture industry development, the Ministry of Industry has pledged unwavering support, with a focus on implementing strategic measures to facilitate access to raw materials and ensure the availability of skilled human resources. This commitment underscores the government’s dedication to nurturing a conducive environment for the industry to thrive and expand its reach both domestically and internationally.
Abdul Sobur, the general chairperson of the Indonesian Furniture and Craft Association (HIMKI), emphasized the strategic importance of the furniture and craft sectors, contrasting them with finite resource industries like mining. He highlighted the ample room for growth in Indonesia’s furniture export potential, signaling promising opportunities for the industry’s advancement on the global stage.
As the government takes proactive steps to streamline regulations and provide vital support to the furniture industry, stakeholders remain optimistic about the sector’s prospects for sustained growth and enhanced competitiveness in the international market. With a solid foundation and a clear vision for the future, Indonesia’s furniture industry is poised to make significant strides in the years to come.
