The furniture business is an industry that transforms wood, rattan, and other natural raw materials into completed furniture goods with more excellent value and advantages. The furniture business in Indonesia is widespread, with major hubs in Jepara, Cirebon, Sukoharjo, Surakarta, Klaten, Pasuruan, Gresik, Sidoarjo, Jabodetabek, and many more.
The wood processing business is often classified into two groups: upstream wood processing and downstream wood processing. The upstream wood processing business is a significant wood processing sector that transforms logs or logs into other types of wood. In contrast, the downstream wood processing sector produces a range of wood products, including dowels, molding, doors, windows, and wood flooring. The major export markets for the Indonesian furniture sector include the United States, European nations, and Japan.
Did you know Indonesia is the eighth largest furniture exporter to the United States? In 2019, the entire export of Indonesian furniture to the United States reached $1.04 billion, equivalent to Rp.14.718 trillion. Intriguingly, exports of furniture items from January to May 2020 climbed by 5.13 percent despite the Covid-19 epidemic, rising from US$ 384.82 million or Rp 5.445 trillion to US$ 582.11 million or Rp 8.238 trillion.
Several states in the United States are documented to import furniture with high values, such as the West Coast of the United States, where from January to May of 2020, imports reached US$ 366.21 million, or Rp. 5.18 trillion. This value climbed by 72.15 percent compared to the previous year’s similar time, which was just US$ 212.72 million, or Rp 3.010 trillion. The West Coast areas of the United States include Arkansas (456 percent), Montana (216 percent), and New Mexico (213 percent). The current concentration of Indonesian furniture exports to the United States West Coast is California at US$ 212.97 million, or Rp 3.013 trillion, Georgia at US$ 38.07 million, or Rp 539 trillion, and Texas at US$ 37.04 million, or Rp 539 trillion.
The Ministry of Industrials has inked cooperation agreements with five institutions and organizations to boost furniture exports, particularly in the small and medium-sized industry sector. Ministry of Trade, Tourism and Creative Economists, National Crafts Council (Dekranas), Indonesian Furniture and Handicraft Industry Association (HIMKI), and Business and Export Development Organization Foundation are the five essential stakeholders.