Imported Furniture Floods Indonesia's Market as Exports Slow: What Can the Government Do?

Jakarta, CNBC Indonesia – The global furniture industry continues to show a bright outlook amidst global economic and geopolitical dynamics. The world market value in 2025 was recorded at US$736.21 billion and is projected to continue growing over the next decade. Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, said this trend presents a major opportunity for Indonesia to strengthen its position as a leading furniture player.

‘Based on Precedence Research data, the global furniture market in 2025 stood at US$736.21 billion and is projected to grow by 5.2% from 2026 to 2034,’ Putu said at the opening of the Indonesia International Furniture Expo (IFEX) 2026 at ICE BSD, Thursday (5 March 2026).

Domestically, the furniture industry also plays a strategic role. In Q4 2025, the sector contributed 1.1% to the non-oil and gas processing industry.

However, trade performance shows pressure. Furniture exports (HS 9401-9403) in 2025 were US$1.85 billion, down about 3% from 2024’s US$1.91 billion. By contrast, imports rose 6% to US$0.82 billion.

‘The value of furniture exports in 2025 reached US$1.85 billion, down about 3%, while imports rose to US$0.82 billion or up by about 6%,’ he explained.

This condition serves as an important signal to strengthen the national industrial structure so it is not eroded by foreign products.

‘This underlines the importance of strengthening the national furniture industry structure through productivity increases, efficiency, modernisation of machinery and equipment, and enhancing product competitiveness,’ he asserted.

The momentum of manufacturing improvement is considered to support these steps. The S&P Global PMI for manufacturing shows a strong expansion phase early in 2026.

‘The S&P Global PMI rose from 52.6 in January to 53.8 in February 2026, the highest since March 2024, and the BI PMI for Q1 2026 is projected to reach 53.17,’ Putu said.

The Ministry of Industry is also pushing accelerated modernisation through the Wood Processing Industry Machinery/Equipment Restructuring Programme, which has been in operation since 2022.

‘The programme has run for four years, involving 35 companies with a total reimbursed value of Rp26.1 billion,’ he said.

From total machinery investments of Rp199.35 billion by participating companies, the impact is considered significant on industry performance.

‘The activities have delivered effects including a 10.70% improvement in process efficiency, a 36.28% improvement in quality, and a 32.65% increase in productivity,’ Putu concluded.