Rattan Smuggling Rife: Is Indonesia's Furniture Industry Under Threat?

The foiling of a smuggling attempt involving 99.5 tonnes of whole rattan in the waters off Nunukan, North Kalimantan, serves as a stark reminder that the problems plaguing Indonesia’s rattan industry are far from over. While the government pushes for downstream processing and increased added value, efforts to illegally export raw materials abroad persist. The Directorate General of Customs and Excise (DJBC) secured 1,493 bundles of whole sega rattan weighing approximately 99.5 tonnes, suspected to be destined for Tawau, Malaysia. The estimated value of the goods reached Rp4.28 billion. The enforcement action was taken after the team obtained intelligence information, subsequently stopping the vessel suspected of carrying the cargo in the border waters between Indonesia and Malaysia. Two individuals have been named as suspects and the investigation is ongoing.

This case carries greater significance than the value of the seized goods alone. Rattan is one of the primary raw materials for the national furniture and handicraft industry. When supply leaks out through illegal channels, the raw materials that should enter the domestic industry are correspondingly reduced. This situation narrows the space for business actors, especially small and medium-sized industries that have long depended on the availability of natural rattan. In its press release, DJBC stated that Indonesia still requires rattan to support its processing industry. Data from the Central Statistics Agency (BPS) cited by DJBC shows that the import value of various rattan-based products over the last five years reached approximately US$2.26 million. The import value has even continued to rise since 2023 and reached its highest point in 2025. This data illustrates that domestic demand for rattan products persists even as raw material supply faces pressure.

The issue of raw materials becomes increasingly critical when observing the condition of the national furniture industry. Data from the Indonesian Furniture and Handicraft Industry Association (HIMKI) shows that rattan furniture contributed around 9.74% of Indonesia’s total furniture exports in 2024. While this figure remains below that of wooden furniture, it demonstrates that rattan remains a value-added commodity with an export market. This means any disruption to the rattan supply chain will be directly felt by the processing industry. Furniture factories require a stable supply to maintain production, fulfil export contracts, and sustain competitiveness in the international market. When raw materials diminish, business actors face higher production costs or must seek other alternatives that are not necessarily easy to obtain. At the same time, the pressure on Indonesia’s furniture industry has not fully subsided. Indonesian furniture exports still face challenges due to global competition and high dependence on certain export markets. Under these conditions, the sustainability of raw material supply becomes one of the determining factors for the industry’s ability to maintain its production.

Therefore, the enforcement action taken by DJBC does not stop at the legal aspect. Supervision in border areas also helps ensure that strategic raw materials remain available for the national industry. This step aligns with efforts to strengthen downstream processing, namely encouraging rattan to be processed into furniture and handicraft products with higher economic value before being marketed abroad. The challenges remain substantial. DJBC acknowledges that supervision faces obstacles including the vastness of Indonesia’s maritime territory, the multitude of inter-island crossing routes, and distribution patterns utilising various modes of transport. These conditions mean supervision requires intelligence support, technology, patrol fleets, and synergy with various law enforcement apparatus. The success in thwarting the smuggling of nearly 100 tonnes of rattan is an initial step towards safeguarding the national furniture industry’s supply chain. The next task is to ensure raw materials continue to flow to the processing industry, so that added value can be created domestically and the competitiveness of Indonesian furniture is maintained in the global market.