Indonesia home décor exports, which include vases, rugs and frames, reached $2.5 billion in 2016, according to the most recent data from the Ministry of Trade.
Increasing global environmental awareness is driving Indonesia home décor suppliers to use environment-friendly materials in their products. Some have increased production of tabletop and garden accessories made of recycled teak or mahogany from refurbished boats and old buildings.
Furniture makers, meanwhile, are expanding their line to include multifunctional pieces. Models may range from stackable, modular pieces to those that can be transformed into other types of furniture.
Indonesia home decor & furniture exports
The US is the key market for home décor and furniture overseas sales followed by Japan, Germany, the UK, Italy, Spain, the Netherlands, Australia, Saudi Arabia and Senegal.
Europe and the US are the target markets for the next years.
Competitive advantages
- The country has abundant natural resources : Indonesia is currently the world’s top producer of rattan, which is utilized in making both furniture and home accessories. Nearly 400,000 tons are produced each year. There is also an abundant supply of teak, bamboo and water hyacinth in the country that suppliers also using glass and stone convert into decorative pieces.
- Strong supplier base with over 4,000 companies with skilled carpenters and wood carvers.
- Active government support helping suppliers gain more opportunities outside the country.
Industry composition
- The industry is mainly composed of SMEs located in Bali, Solo, Semarang and Yogyakarta in Central Java, and Plered and Cirebon in West Java.
- Small and midsize companies can yield 5,000 to 30,000 pieces monthly.
- Large enterprises, which earn more than $500,000, can produce more than 30,000 piecesin the midrange to high-end categories. These companies are usually ISO-certified and operate factories measuring more than 5000sqm.
