Indonesian furniture and handicraft export expansion

The Indonesian furniture and handicraft industries are pursuing significant growth and market expansion. The Indonesian Furniture and Handicraft Industry Association (HIMKI) has established an export target of US$6 billion by 2031, doubling the current level of approximately US$3 billion. To achieve this, industry leaders have identified a need for improved access to affordable and rapid financing to cover production costs and certifications.

As the sector continues to grow, government officials are emphasizing strategic shifts to ensure long-term stability. Coordinating Minister for Economic Affairs Airlangga Hartarto has urged the industry to diversify its export markets to mitigate global economic uncertainties, noting that approximately 60 percent of exports are currently concentrated in the United States.

To enhance global competitiveness, producers are being advised to focus on design, sustainability, and functionality. The industry currently maintains a trade surplus, with 2025 exports reaching US$2.39 billion, and benefits from Indonesia’s natural resource advantages, including a supply of over 80 percent of the world’s rattan.