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RI furniture, craft exports plummet 28 percent in 2023: Association
The total value of exports fell to US$1.8 billion in 2023 from $2.5 billion in 2022, according to an estimate from the Indonesian Furniture and Handicraft Industry Association (HIMKI).
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The wooden furniture business is a major contributor to Indonesian exports. (JP/P.J.LEO)
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urniture and craft exports tumbled 28 percent in 2023, according to an estimate from the Indonesian Furniture and Handicraft Industry Association (HIMKI), with the total value of shipments falling from US$2.5 billion in 2022 to $1.8 billion last year.
HIMKI chairman Abdul Sobur attributed the steep drop to a combination of factors, including the geopolitical situation, high inflation dampening consumer spending in importing countries and competition from neighboring countries.
“Buyers are also prioritizing purchases from countries such as Malaysia, Vietnam and China, except for Indonesian products that are made of solid wood or exotic materials like rattan, and crafts, which are still our strengths,” Sobur said on Wednesday, as quoted by the Antara news agency.
Sobur based his estimate on a 22 percent decline of furniture and craft exports in the first nine months of 2023. Furniture exports fell to $1.29 billion from $1.86 billion year-on-year (yoy) in that period in 2022, while craft exports fell to $513 million from $647 million, Sobur noted, as quoted by Kontan.
Significant declines were seen in the provinces of East Java and Banten, which are major producers of engineered wood, a key material used in furniture, he added.
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Acknowledging the difficult situation, Sobur recommended revising down this year’s export target or ensuring significant government assistance for the industry.
