COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/92/SET.M.EKON.3/03/2023

Increasing the Competitive Advantage of Indonesian Furniture Industry Players, HR Training and Digital Marketing Continue to be Encouraged

Jakarta, March 10th, 2023

Indonesia is a producer of furniture, handicrafts, and home décor with a comparative advantage based on natural resources. These advantages become vital assets in producing products that are unique and different. The patterns and designs of these products also vary, born from genius local craftsmen/sculptors who are strengthened by qualified skills so that they become a competitive advantage that is not easily competed with by other countries.

The government is targeting exports of furniture and handicrafts worth USD 5 billion by the end of 2024, meaning that based on the realization of exports from 2021 to 2024, a minimum growth of 13.4% per year is required. Exports of furniture and handicraft products in 2022 are USD 3.5 billion. To increase the export value, of course, it is also necessary to improve the quality of the furniture products produced, as well as carry out appropriate marketing methods so that these products can be known throughout Indonesia and abroad.

At the Opening Ceremony of Indonesia International Furniture Expo (IFEX) 2023, which was witnessed directly by the Coordinating Minister for Economic Affairs Airlangga Hartarto, it was also carried out the Memorandum of Understanding (MoU) signing by the Chairperson of the Presidium of the Indonesian Furniture and Craft Industry Association (HIMKI) Abdul Sobur with the Chairperson of the Indonesian E-Commerce Association (idEA) Bima Laga. The MoU agreed on implementing Human Resources (HR) Training and Marketing of Furniture Products through the Trading Through Electronic Systems (PMSE) Platform.

HIMKI and idEA will also sit together first to discuss further forms of cooperation to encourage the potential for Human Resources (HR) Training and Product Marketing on the PMSE Platform. Through the signed MoU, it is hoped that they will be able to develop the competence of furniture craftsmen through digital marketing training and the provision of online marketing tools. This will ultimately improve the performance of the national furniture industry and accelerate the achievement of export targets.

On the other hand, the Indonesian furniture industry faced two main obstacles, namely raw materials and the Timber Legality Assurance System (SVLK). The availability of raw materials is a classic problem in the furniture and craft sector that must be addressed immediately. Furniture business actors, most of whom are MSMEs, need guaranteed ease of obtaining raw materials, so this will be coordinated between the Coordinating Ministry for Economic Affairs, the Ministry of Industry, and the Ministry of Environment and Forestry. Regarding the legality of raw materials, the European Union (EU) requires certification in the form of Forest Law Enforcement, Governance, and Trade (FLEGT) which requires traceability of all forestry products to ensure that these products do not come from illegal forests.

Regarding exports, the Indonesian Export Financing Agency (LPEI) will compile a roadmap for the furniture and craft industry related to financing and strategies to achieve the export target of USD 5 billion in 2024. (dep5/rep/dlt/rtn/map/fsr)

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Head of Communications, Information Services, and Meetings Bureau
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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