The Ministry of Cooperatives and Small and Medium Enterprises (KemenkopUKM) highlights the potential of the furniture industry in driving Indonesia's economic growth. Minister Teten Masduki emphasizes the increasing global demand for environmentally friendly furniture, projected to reach USD 51.02 billion by 2024, signaling an opportunity for Indonesia. The ministry supports expanding bamboo plantations in NTT in collaboration with local governments to tap into this potential. Indonesia's abundant natural resources, including wood, bamboo, and rattan, position it as a potential global furniture supplier. Minister Teten underscores Indonesia's status as the world's third-largest bamboo producer, emphasizing its significance for the domestic furniture industry's growth. Asmindo projects a robust growth in demand for eco-friendly furniture, anticipating USD 51.02 billion by 2024. Despite global challenges, the furniture and handicraft industry continues to contribute significantly to export value, amounting to nearly IDR 16 trillion and supporting domestic tourism and hospitality sectors.
However, Indonesia's furniture and handicraft exports witnessed a 28% decline from January to September 2023 compared to 2022, dropping from USD 2.5 billion to USD 1.8 billion. This decline, with the furniture sector down by 30.63% and handicraft sector by 20.59%, underscores the need for strategic interventions. Minister Teten pledges continued government support to encourage SMEs to produce environmentally friendly products. Initiatives include facilitating the supply of raw materials, such as expanding bamboo plantations. He stresses the importance of leveraging Indonesia's natural wealth across its 17,000 islands to enhance the furniture industry's contribution to foreign exchange earnings and community welfare. The comprehensive strategy involves establishing research and production centers in industrial areas to capitalize on the high growth potential of the furniture sector. Minister Teten emphasizes the necessity of collaboration among stakeholders domestically and internationally to harness these potentials effectively. In conclusion, Indonesia's furniture industry holds significant promise for economic growth, with ample opportunities to leverage its rich natural resources. Strategic initiatives and collaborations are vital to capitalize on these opportunities and drive the industry's sustainable development while contributing to national economic resilience.
