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RI furniture industry eyes 5% of global market in 10 years
The Indonesian Furniture Entrepreneurs Association (Asmindo) is aiming to supply 5 percent of the worldâs furniture products with Indonesian-made items over the next 10 years
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he Indonesian Furniture Entrepreneurs Association (Asmindo) is aiming tosupply 5 percent of the world's furniture products with Indonesian-made items over thenext 10 years.
Asmindo chairman Taufik Gani said Indonesia's furniture industry currently supplied only around 1 percent to the worldwide furniture market, amounting to about U$440 billion. This is a low figure compared to other developing countries such as Vietnam, Poland and Brazil, who contribute around 2 percent, or China, which contributes 31 percent.
'As a first step, we will target growth of 2 percent, or about $8 billion to $10 billion a year from the current 1 percent. Indonesia is able to reach 5 percent market share in the global furniture market,' Taufik said on Wednesday as quoted by kontan.co.id.
Domestically, the processed timber industry employs more than 4 million workers, thereby making the furniture and handicraft industry one of Indonesia's priority export sectors with the ability to improve the economy.
Separately, the Office of the Coordinating Economic Minister voiced its confidence in the prospects for the domestic furniture industry's growth, saying that Indonesian furniture had already established itself as a brand in the global market, and adding that it hoped the industry would be able to channel more income to regional areas.
'Most of our furniture is made with locally produced rattan and wood, and assembled by local craftspeople. We hope the furniture industry will help channel more income to regional areas and assist in economic growth,' Deputy Coordinating Economic Minister for Trade and Industry Affairs Edy Putra Irawadi said on Wednesday as quoted by kompas.com.
Previously, Asmindo stated that it was aiming for a foreign export rate of around $2 billion in 2014, due to optimism in the fact that many furniture producers now possessed Timber Legality Verification (SVLK) certification.
Last year, the industry exported $1.83 billion worth of furniture to foreign markets.(dyl)
