In a recent report by the Ministry of Industry, the export-oriented furniture industry has been highlighted as a crucial sector that significantly impacts the non-oil and gas industry. The ministry’s director of small and medium industries for food, furniture, and building materials, Bayu Fajar Nugroho, emphasized the positive influence of the furniture industry on the country’s economy during a recent statement in Yogyakarta.
Nugroho pointed out that the furniture industry is a labor-intensive sector that plays a vital role in driving economic growth, with a recorded 17.31 percent contribution to the non-oil and gas sector. This revelation underscores the importance of fostering strong synergies between the furniture industry and craft associations to boost export values and meet the growing demand for domestic furniture and craft products.
One of the key initiatives to promote the furniture industry’s growth is the Jogja International Furniture and Craft Fair Indonesia (JIFFINA) exhibition, scheduled to take place from March 8 to 11, 2025. This event serves as a platform for industry players to showcase their products, forge partnerships, and explore new market opportunities both locally and internationally.
According to the ministry’s data, the furniture industry made a significant contribution of 1.2 percent to the country’s export value, amounting to US$1.91 billion—an increase of 3.2 percent compared to the previous year. Despite facing various challenges, such as logistical constraints and market competition, the industry has shown promising growth trends that bode well for its future.
Nugroho highlighted that the majority of furniture exports are currently directed towards countries in the European Union, the US, and Japan. However, there is a growing interest in expanding market reach to emerging regions like South Asia, particularly India, and Africa, presenting untapped potential for future growth and market diversification.
Global market research data from Expert Market Research revealed that the global furniture market reached a staggering US$660.35 billion in 2024, with a projected growth rate of 49 percent. This macroeconomic landscape provides Indonesia with a strategic market penetration opportunity, as the country currently holds a mere 0.28 percent market share, leaving ample room for expansion and market development.
Amidst these developments, the Indonesian government has shown its commitment to supporting the furniture and craft industry by implementing policies to facilitate market expansion and ease regulatory barriers. These efforts aim to create a conducive environment for industry players to thrive and capitalize on the growing demand for Indonesian furniture products in both domestic and international markets.
As the furniture industry continues to evolve and adapt to changing market dynamics, stakeholders are encouraged to leverage industry events like JIFFINA and explore new avenues for collaboration and innovation. By fostering a culture of creativity, quality craftsmanship, and global competitiveness, the Indonesian furniture industry is poised to make a significant impact on the global stage, solidifying its position as a key player in the international furniture market.
