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Indonesia aims for $5 billion in furniture export revenue in 2023

Jakarta Globe - March 9, 2023

Investor.id, Jakarta – Indonesia is aiming for up to $5 billion in furniture export revenue this year which can be achieved by improving raw material supplies and export funding scheme, Chief Economic Minister Airlangga Hartarto said on Thursday.

In the supply system, the government will provide certification to ensure that the materials used in the furniture industry come from sustainably managed forests.

The Industry Ministry will shoulder the cost of certification, Airlangga said when opening the Indonesia International Furniture Expo in Jakarta.

The certification and legality procedures, known by the Indonesian acronym SVLK, is a multi-stakeholder tracking system to ensure the legality of logs and timber traded in Indonesia.

This system was developed to encourage the implementation of applicable government regulations related to the trade and distribution of legal forest products in Indonesia.

"Secondly, regarding the exports and our attempts to expand the export markets, we will facilitate the export financing through the LPEI [Indonesian Export Financing Agency]," he said.

Government support was needed to strengthen Indonesia's competitiveness over neighboring Vietnam, whose furniture exports already topped $18 billion in value.

Indonesia, which has the comparative advantage in terms of raw material supplies, has the potential to become the regional leader in the furniture industry, the minister said.

"At least at the ASEAN level we can take the lead because we have the advantage in craftsmanship and raw material supplies," Airlangga said.

Source: https://jakartaglobe.id/business/indonesia-aims-for-5-billion-in-furniture-export-revenue-in-202