Indonesia’s furniture industry is experiencing robust export growth as manufacturers successfully target premium market segments in North America and Europe. ProSpace Indonesia’s Export Market Analysis shows furniture exports reached $3.8 billion in 2024, a 17.2% increase compared to the previous year.
Solid wood furniture leads the growth, with products incorporating traditional craftsmanship and sustainable materials commanding premium prices in destination markets. Outdoor furniture, particularly teak products, has seen the strongest demand increase at 28% year-on-year.
“Indonesian furniture makers have successfully repositioned from mass-market suppliers to creators of distinctive, higher-value products,” explains Diana Purnomo, Furniture Industry Expert at ProSpace. “Design collaboration with international designers while maintaining authentic Indonesian elements has proven particularly successful.”
Sustainability certifications play a crucial role in market access, with 72% of export-oriented manufacturers now holding Forest Stewardship Council certification for their supply chains. Digital manufacturing technologies including computer-aided design and CNC machining are increasingly utilized alongside traditional craftsmanship.
Domestic market growth remains strong at 14.3% annually, driven by residential construction and hospitality sector development. E-commerce channels now account for 37% of domestic furniture sales, enabling manufacturers to capture higher margins through direct-to-consumer models.
Labor productivity has improved by 23% over five years through skills development programs and process improvements, helping maintain competitiveness despite rising wages.
For furniture market trends: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates