The Indonesian Ministry of Industry is expanding non-traditional markets for high-value-added furniture products to bolster Indonesia's economy. This initiative was highlighted by Indonesia's participation in the IndexPlus Delhi 2024 Exhibition, India's largest international platform for interior, architecture, and design, held from 9 to 11 August 2024. The event resulted in a business commitment of IDR 17 billion. Represented by six partnerships between companies and designers, including Cocoon Asia and Handyanto Hardian, and Chakra Naga Furniture with Chyntia Margareth, Indonesia showcased its innovative furniture designs. The government has developed a strategy focusing on five areas: facilitating raw material availability, skilled labor, market expansion, productivity, and creating a favorable business climate. Incentives like tax allowances and streamlined export-import procedures are also in place to support the furniture industry.
The furniture industry’s GDP grew by 0.50% in the first half of 2024, a positive turnaround after two years of contraction. In 2022, the sector declined by 1.99%, and in 2023 by 2.04%. Despite past fluctuations, the industry showed significant potential, especially considering a 2021 growth of 8.16%. During the first half of 2024, the furniture sector, including metal and plastic furniture, contributed 1.1% to the non-oil and gas GDP, with export performance reaching USD 1.02 billion. The global furniture market, valued at USD 629 billion in 2023, is projected to grow by 5% in 2024. India, with a USD 41 billion furniture market and growing urban population, presents a significant opportunity for Indonesian furniture. India's consumer market, expected to be the world's third-largest by 2027, is driven by urbanization, tourism recovery, and rising demand for eco-friendly and ergonomic furniture. This growing market potential is a crucial focus for Indonesian furniture designers and manufacturers.
