The Indonesian Ministry of Industry (Kemenperin) is actively encouraging the furniture industry to boost exports and seize opportunities in the booming global market, which reached a value of USD 660 billion in 2024 and is projected to grow by 4.9% annually until 2034. Director General of Agro Industry, Putu Juli Ardika, highlighted that the furniture sector—part of the agro-industrial sub-sector, significantly contributed to 52.19% of non-oil and gas processing industry GDP in Q1 2025. Indonesia's furniture exports grew from USD 1.85 billion in 2023 to USD 1.91 billion in 2024, showing a positive 3% increase.
However, challenges remain, including logistical disruptions, environmental regulations such as the EU Deforestation Regulation (EUDR), non-tariff barriers, and competition from imported metal and plastic furniture. To remain competitive, the industry is urged to innovate by embracing eco-friendly materials, modular and smart designs, and marketing through digital technologies like AR and 3D printing. To support modernization, Kemenperin has implemented a machinery restructuring program since 2022, offering reimbursements of up to 30% for local and 15% for imported machines. This initiative has enhanced production efficiency by 11%, product quality by 21%, and overall productivity by 24%. Further support includes raw material access, workforce training, market research, and fiscal incentives such as tax holidays and super deductions. Events like Indo Wood Expo 2025 are also promoted to help businesses connect with the latest technology and export opportunities.
