Indonesia, with abundant raw materials such as diverse types of wood including meranti, teak, mahogany, and acacia, possesses significant opportunities for the development of the furniture and woodworking industry. The Director-General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, highlighted the need to continuously drive downstream processes or enhance the value-added of natural resources to fuel national economic growth. Ardika emphasized that Indonesia is the source of 80% of the world's rattan, with considerable potential in bamboo, and the furniture export value reached USD 2.5 billion in 2022. The Ministry is currently focusing on implementing five strategic policies to enhance the competitiveness of the global furniture industry. These include facilitating the availability of raw materials, skilled human resources, market improvement, research enhancement, increased productivity, capacity, and product quality, as well as creating a conducive business climate and boosting investments. Efforts to facilitate raw material availability involve improving access, aiming to establish an ideal furniture raw material supply chain through the Furniture Industry Raw Material Logistics Center. This initiative has been implemented for wood panel raw materials in 2022.

For skilled human resources, the Ministry is optimizing the role of the Furniture and Wood Processing Polytechnic in Kendal, which applies a dynamic curriculum tailored to market needs. In terms of market enhancement and research, the Ministry consistently facilitates the participation of furniture industry players in national and international exhibitions. The government actively promotes the utilization of domestically-produced products with high domestic content through the state budget, providing an opportunity for furniture industry players to expand their domestic market share. To enhance productivity, capacity, and product quality, technological improvements are implemented through the Restructuring Program for Wood Processing Industry Machines/Equipment, providing reimbursement for the partial purchase of machines/equipment meeting specific criteria. Additionally, the Ministry conducts furniture design concept development programs, collaborating between furniture designers and industry players. Quality improvement is supported through the implementation of national and industrial standards. In addition to these policies, the government is working to create a conducive business environment for furniture industry players, offering tax allowance incentives and streamlining export and import procedures. The focus is also on maintaining a strong domestic presence through innovative and efficient production, allowing local consumers to enjoy high-quality, locally-made furniture products.

Source: https://amp.kontan.co.id/news/kemenperin-ungkap-lima-strategi-dongkrak-kinerja-industri-furnitur