Indonesia’s furniture industry, long recognized for its rich supply of natural materials and skilled craftsmanship, is at a crossroads. While export performance has softened in recent years, long-term projections and new initiatives offer strong indications that the sector retains significant growth potential — both in global markets and at home. 

Data from the Indonesian Ministry of Industry shows that Indonesia’s furniture exports reached USD 2.5 billion in 2022 before falling to USD 1.9 billion in 2023. 

Indonesia's Furniture Sector Export Value (million USD)

Source: Ministry of Industry 

Indonesia’s share of global furniture and handicraft exports has also declined, from 3.47% in 2021 to 2.37% in 2024. Much of this contraction has been attributed to heavy reliance on the United States, which absorbed 53.6% of Indonesia’s furniture exports between January and November 2024. With changes in U.S. trade policy, shifting consumer preferences, and broader economic uncertainty, this concentration presents a clear vulnerability. 

Other export destinations — including Vietnam, the Netherlands, France, and Australia, which each account for between 2.6% and 4.3% of Indonesia’s total furniture exports — remain underdeveloped markets for Indonesian furniture makers. Expanding into these and other emerging markets is seen as critical to ensuring long-term stability. 

Indonesian Furniture Export Top 5 Destination Jan-Nov 2024 

Source: BPS, Indonesian Furniture and Handicraft Producers Association (HIMKI) 

Wood remains the dominant raw material for Indonesian furniture, contributing 52.62% of total exports. However, sustainable sourcing has grown increasingly difficult amid stricter environmental regulations and dwindling supplies of high-quality timber. The Indonesian Furniture and Handicraft Industry Association (HIMKI) has warned that without effective forest management and responsible logging practices, securing adequate supplies of raw materials could become a serious bottleneck for the industry. 

Indonesia’s abundant supply of rattan and bamboo, however, remains underutilized. Despite being one of the world’s largest rattan producers, Indonesia’s rattan furniture only accounts for 9.74% of exports, while bamboo furniture contributes just 0.07%. The government’s ban on raw rattan exports was designed to encourage domestic value addition, but without innovation in design and processing technology, these materials remain largely secondary to wood in global markets. 

Furniture Export by Materials in 2024 

Source: Indonesian Furniture and Handicraft Producers Association (HIMKI), CNBC 

Growth Projections Remain Strong 

Despite these challenges, Indonesia’s furniture sector still holds strong potential for growth. HIMKI Chairman Abdul Sobur has emphasized that the industry benefits from abundant natural raw materials, a growing skilled workforce, and increasing global demand for unique and sustainable furniture products. HIMKI has set a target of reaching USD 6 billion (approximately IDR 98 trillion) in exports by 2030, supported by strategies to diversify markets and enhance product competitiveness. 

The global furniture market itself is on a positive trajectory, with US-based consultancy firm Expert Market Research forecasting an average annual growth rate of 4.9% between 2025 and 2034, building from a market value of USD 660 billion in 2024. This broader market expansion offers clear opportunities for Indonesian manufacturers, provided they can adapt to evolving design trends and sustainability requirements. 

The Ministry of Industry has also stepped up its support for the sector. According to Putu Juli Ardika, Director General of Agro Industry, the Ministry is pursuing five strategies to strengthen the industry’s competitiveness. These include improving raw material availability, developing skilled human resources, expanding market access, enhancing productivity and product quality, and creating a conducive investment climate. 

Among these measures is the development of a Furniture and Wood Processing Polytechnic in Kendal, Central Java, designed to train skilled, industry-ready workers across design, production, and business management programs. The Ministry is also facilitating participation in international exhibitions and business matchmaking programs to help manufacturers access new global markets. 

Indonesia’s domestic furniture market also offers significant growth potential. According to Statista, furniture market revenue in Indonesia is projected to reach USD 3.3 billion in 2025, with an annual growth rate of 2.26% through 2029. The home décor segment, valued at USD 1.03 billion, remains the largest component of the market. 

Additional data from Mordor Intelligence projects Indonesia’s home furniture market to grow from USD 4.25 billion in 2025 to USD 6.03 billion by 2030, at a CAGR of 7.25%. This growth is expected to be driven by increasing urbanization, rising disposable incomes, and growing demand for modern, multifunctional furniture that suits smaller living spaces. 

Crafting A Sturdier Future 

Despite recent declines in export performance, Indonesia remains the world’s 19th-largest furniture and handicraft supplier. The country has long benefited from a rich supply of natural materials and a long tradition of skilled craftsmanship. In that regard, Government efforts should be aimed at enhancing production efficiency and promoting eco-design and circular economy practices, further aligning the sector with evolving global consumer preferences. 

While Indonesia’s furniture industry faces several near-term challenges — including raw material constraints, heavy reliance on the U.S. market, and tightening environmental regulations — the sector’s long-term prospects remain positive. Strong government support, increasing global demand for sustainable and customized furniture, and Indonesia’s natural competitive advantages position the industry to regain its footing in the global market. With the right combination of market diversification, design innovation, and sustainable practices, Indonesia’s furniture industry can strengthen its role as a global leader in the years ahead.