Indonesia: Furniture exporters face tough competition in international markets

Source:
ITTO/Fordaq
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The President/Director of PT Integra Indocabinet, Halim Rusli, has said, while it is now easier to secure verified legal raw materials, the Indonesian furniture industry is no more competitive than other Asian countries in the main international markets.

In addition, said Halim, only a handful on Indonesian companies are serious exporters shipping a mere 50-60 containers per month to the US market. This is because most companies are constrained by government regulations related to timber legality verification system (SVLK).

According to Halim, competition in the US furniture market is fierce with China accounting for around 50% of US imports and Vietnam also capturing a large slice of the market.

This is unfortunate, said Halim, as Indonesia has the raw materials and human resources for a vibrant furniture export sector.

According to Gati Wibawaningsih, Director General, Small and Medium Industry Sector in the Ministry of Industry, the government plans to help small and medium industries, especially those in the furniture sector to market their products online.

She said, data is showing that online sales are outpacing conventional marketing options. It appears that growth of conventionally marketed furniture has been growing by about 1% per year while online market growth is around 5%. The government plans to work with the private sector and provide training on on-line selling techniques.

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