BALINEWSID.COM, JAKARTA — Indonesia is pushing its furniture industry to expand into international markets and strengthen global competitiveness as the government seeks to shield the domestic economy from the spillover effects of global uncertainty.

The furniture industry recorded 11.82% year-on-year growth, making it one of the strongest-performing manufacturing subsectors, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

The manufacturing sector overall contributed 18.50% to the national economy and grew 4.52% year on year.

Airlangga made the remarks virtually at the International Furniture and Craft Fair Indonesia (IFFINA)+ 2026 in Jakarta on Thursday (Sept. 24).

“The IFFINA+ event is important as one way to mitigate risks by expanding markets, building direct relationships with international buyers, and reducing dependence on certain export markets,” Airlangga said.

Indonesia has significant potential to increase its share of the global furniture market by improving product quality and design, strengthening sustainability practices, expanding trade promotion and developing broader networks with international buyers.

Indonesia’s furniture trade balance has remained in surplus since 2021. In 2025, furniture exports reached US$2.39 billion, while imports stood at US$1.92 billion, resulting in a trade surplus of US$473.31 million.

Indonesia ranked 25th among the world’s furniture exporters in 2025, with a global market share of 0.77%. The United States remained the largest destination, accounting for around 60% of Indonesia’s furniture exports.

Airlangga said Indonesian furniture producers also need to adapt their designs to changing global consumer preferences. Demand has increasingly shifted toward furniture that is functional, customizable and made from environmentally friendly materials.

Indonesia’s wood and rattan resources provide opportunities to develop products that meet those demands. National roundwood production reached 57.46 million cubic meters in 2024, with around 20% of national log production used as raw material for the wood-processing industry.

Indonesia also accounts for more than 80% of global rattan production, according to the government.

However, the country’s industrial structure remains heavily dominated by small and medium-sized industries (SMIs). Airlangga said SMIs accounted for approximately 99.79% of the country’s 4.45 million industrial business units and employed 65.52% of the industrial workforce.

“With this scale, the industry still faces challenges related to limited technology and productivity that can still be improved,” Airlangga said.

Furniture manufacturers also need to adapt to standards, regulations and consumer preferences in their export markets, he added.

Government Prepares Support for Furniture Industry

The government has prepared several forms of support to strengthen the competitiveness of the furniture industry, including government-borne Article 21 income tax incentives for eligible workers and financing through the Labor-Intensive Industry Credit program.

Support for productivity and efficiency is also being provided through machinery and equipment restructuring programs. The government is also facilitating export promotion to help furniture producers reach new international markets.

On the upstream side, policies are aimed at controlling roundwood exports, strengthening product standards and the Timber Legality and Sustainability Verification System (SVLK), and promoting the adoption of green industry principles.

The measures are intended to increase domestic value-added production and ensure that the benefits of furniture industry development extend to smaller industrial businesses.

Airlangga also welcomed the role of the Indonesian Furniture and Handicraft Industry Association (ASMINDO) in organizing IFFINA+ 2026.

He expressed hope that the exhibition would generate trade transactions, business partnerships and collaborations while expanding international market access for Indonesian furniture and handicraft products.

The government also invited international buyers, importers and investors to explore partnerships with Indonesian furniture manufacturers.

Airlangga urged domestic businesses to use the event to build international networks, understand changing market trends and strengthen their competitiveness in the global furniture industry.