Indonesia Sourcing: Craft gifts 2017

 

Indonesia Sourcing: Craft gifts 2017 is a comprehensive guide for buyers interested in wooden crafts, metal crafts, fabric crafts and other craft gifts from Indonesia. In this report, buyers can find:

Verified exporters – 20 featured suppliers offering various craft gifts

Products – Full-color images with specifications & prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

Export data – Indonesia-wide details and survey results from featured exporters

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewProduct featuresSupplier surveyPDF downloadSupplier list

Indonesia Sourcing: Craft gifts 2017 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Indonesia exported more than $600 million worth of handicrafts from January to October 2016.

  • Artisans of different skills can be found across the country.

  • Small companies produce no more than 10,000 pieces monthly.
  • Handicrafts are fashioned from a wide range of domestically sourced materials, including wood, metal and fabric.

  • Prices are based mainly on the materials used and the design complexity of the product.

  • Handicrafts are made using hand tools and simple machines.
  • Designs combining ethnic and modern elements are expected to increase.

  • Upcoming releases will feature environment-friendly materials.

  • Suppliers generally have an optimistic outlook on export sales.

Indonesia Sourcing: Craft gifts 2017 Suppliers & products

Indonesia Sourcing: Craft gifts 2017

Indonesia Sourcing: Craft gifts 2017

• Wooden crafts • Metal crafts
• Fabric crafts • Other craft gifts

Our team has visited all Indonesia manufacturers featured here to verify their export capability. Each has a website on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.

Sections


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Wooden crafts   
Indonesia-craftsIndonesia-craftsIndonesia-craftsIndonesia-crafts
Metal crafts   
Indonesia-craftsIndonesia-craftsIndonesia-craftsIndonesia-crafts
Fabric crafts   
India-FootwearIndonesia-tablewareIndonesia-tablewareIndonesia-tableware
Other craft gifts   
Indonesia-craftsIndonesia-craftsIndonesia-craftsIndonesia-crafts

Indonesia Sourcing: Craft gifts 2017 Industry overview

Indonesia Sourcing: Crafts Industry Overview

Indonesia Sourcing: Craft gifts 2017

• Wooden crafts • Metal crafts
• Fabric crafts • Other craft gifts

This section discusses key issues affecting export manufacturers in Indonesia, offering insight into industry composition and important supply centers.

 

Indonesia craft exportsCompetitive advantagesChallengesIndustry composition
  • The country exported more than $600 million worth of handicrafts from January to October 2016.

  • The main markets were the US, Japan, Malaysia, the UK and Germany.

  • Exports include products made of wood, metal and fabric.

  • The diversity of ethnic groups and cultures in Indonesia has given rise to a wide range of handicrafts.

  • Artisans of different skills can be found across the country.

  • Various raw materials are locally available.

  • Rising labor-related expenses are among the major challenges facing the industry.

  • SMEs, which make up the majority of the sector, have limited funds to invest in R&D and other activities to expand market reach.

  • Another factor making companies hesitate to enter new markets is the cost of acquiring the necessary certification and documents.

  • Indonesia’s handicraft and furniture sector comprises about 3,000 companies.

  • SMEs account for the majority of the industry.

  • Small companies produce no more than 10,000 pieces monthly.

Indonesia’s handicrafts industry produces a wide range of items. Among the major products of the sector are home furnishings and fashion accessories made of wood, metal and fabric, which are covered in this report.

Baskets and other wicker articles are also offered by the sector. For information about the country’s basketware industry, click here.

Indonesia’s handicraft exports during the 10-month period ending October 2016 exceeded $600 million, according to the list of 10 potential commodities posted on the Ministry of Trade’s website. The main markets were the US, Japan, Malaysia, the UK and Germany.

Statistics from the DESA/UNSD, United Nations Comtrade database show that the country sent more than $77.9 million worth of statuettes and other ornaments in 2016, up 2 percent from the previous year. Wooden types, exported under HS code 442010, accounted for 78 percent of the value, with the US, the UK, the Netherlands, Japan and France as the top importers.

Base metal products under HS codes 830621 and 830629 accounted for 12 percent, with the US, Japan, Australia, the Netherlands and France among the key destinations. For ceramic products under HS code 6913, which contributed 8 percent to the export value, the US, the Netherlands and Australia were also the main markets, along with the UK and Singapore.

Indonesia Crafts Industry Overview Supplier Exports

Suppliers are implementing various strategies to become more competitive and expand market reach. Efforts include adopting traditional elements into modern designs and blending aesthetics and functionality. Companies are also investing in online marketing.

Competitive advantages

There are many ethnic groups spread across Indonesia’s various islands. This, together with the country’s rich multicultural heritage, has given rise to a wide variety of handicrafts.

Artisans of different skills can be found on Indonesia’s various islands. They have learned from previous generations traditional methods of carving, weaving, dyeing, embroidery and other types of production.

A number of wood carvers can be found in Papua province and the islands of Java, Kalimantan, Sulawesi, Maluku, Bali and Nusa Tenggara. Java is also home to several metalworking crafts people, including silversmiths.

Batik artists are spread across the country. On Java island, among the production centers for traditional batik are the special region of Yogyakarta and the cities of Surakarta or Solo, Cirebon and Pekalongan. The islands of Kalimantan, Madura and Bali are also key manufacturing hubs for batik.

A wide selection of locally available materials is another factor enabling Indonesia manufacturers to offer a diversified product range. International buyers will find unique fashion accessories made of cotton, silk and other fabrics, as well as home furnishings made of wood, metal and seashell.

Indonesia also has programs to grow the handicraft industry. To promote and increase awareness of batik, Oct. 2 has been designated National Batik Day. The date commemorates when UNESCO recognized batik as a Masterpiece of Oral and Intangible Heritage of Humanity in 2009. In line with promoting appreciation of batik, the study of batik culture is included in the curricula as local content in Pekalongan City and other areas.

Additionally, the government continues to implement the Batikmark certification. Makers that sell batik-patterned textiles under a registered trademark can avail of the additional certification if their products pass a series of tests.

Under a government-subsidized micro credit program, the Kredit Usaha Rakyat (KUR), MSMEs can obtain loans from certain banks at low-interest rates. Bank Indonesia mandates that a percentage of a bank’s total loan portfolio are to SMEs.

On the marketing side, the government supports various trade exhibitions to showcase handicrafts, including the Jakarta International Handicraft Trade Fair or Inacraft.

Upcoming initiatives of the government include simplifying the Sistem Verificasi Legalitas Kayu (SVLK), the national timber legality assurance system, and making the certification process less costly. The government also intends to facilitate the establishment of a raw material center to supply the requirements of the furniture and craft industry, according to an April 6, 2017, report by Tempo.co, citing a statement from Industry Minister Airlangga Hartarto.

Challenges

Rising labor-related expenses in an industry with intense price competition are among the major challenges facing Indonesia craft suppliers, especially with China slowing down the rate of increase in minimum wages to retain its competitive advantage.

While minimum wages in Indonesia remain relatively lower compared with several countries in the Asia-Pacific region, monthly rates are up 8 percent from 2016 levels. In 2017, the minimum wage in Jakarta rose to 3,355,750 Indonesian rupiah (about $250) per month, while the monthly rate in Yogyakarta went up to 1,337,645 Indonesian rupiah (about $100).

Besides being prompted by higher minimum wages, craft suppliers are also offering better salaries and benefits to attract and retain skilled workers. Handicraft production relies on the transfer of skill from one generation to another, but interest in traditional crafts is waning among younger generations. Consequently, there is a shortage of new artisans with the necessary skills.

Handicraft suppliers and designers also face the challenge of enhancing their capability to offer products that appeal to an international market. SMEs, in particular, have limited funds to invest in market research, promotion and product development. Many promote their products and businesses mainly through their own websites or on B2B platforms.

Another factor making companies hesitate to enter new markets is the cost of acquiring the necessary certification and documents. Some new buyers also request suppliers to send free samples, which adds to operating expenses.

At the 2016 Inacraft, Indonesia Vice President Jusuf Kalla urged handicraft producers to tap into global trends and create innovative products that combine aesthetics with functionality, The Jakarta Post reported April 20, 2016. In his opening remarks at the 2017 Inacraft, President Joko Widodo also noted the need for more visually appealing packaging, according to an April 26, 2017, report by The Jakarta Post.

Industry composition

Indonesia’s handicraft sector consists mostly of small and midsize companies. Prior to the merger of the Indonesian Furniture Industry and Handicraft Association (ASMINDO) and the Indonesia Furniture and Craft Association (AMKRI) to become the Indonesian Furniture and Craft Industry Association, ASMINDO reportedly had about 3,000 members.

Employing up to 50 workers, small companies produce fewer than 10,000 pieces per month in facilities that are less than 1,000sqm. These suppliers generate annual export sales of up to 500 million Indonesian rupiah or approximately $37,000.

Midsize companies record between 500 million and 2.5 billion Indonesian rupiah (about $187,000) in annual export sales. They employ 50 to 100 workers and produce 10,000 to 30,000 pieces monthly. Their factories range from 1,000 to 5,000sqm.

Suppliers with larger workforces and factories produce more than 30,000 pieces per month, generating more than 2.5 billion Indonesian rupiah (about $187,000) in export sales yearly.

Supplier locations map

The highlighted areas on the map show the locations of the head offices and factories of the craft gift suppliers featured in this report.

Indonesia Crafts Industry Overview Locations Map

Indonesia Sourcing: Craft gifts 2017 Product features

Indonesia Sourcing: crafts Suppliers and Products

Indonesia Sourcing: Craft gifts 2017

• Wooden crafts • Metal crafts
• Fabric crafts • Other craft gifts

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by Indonesia craft gift suppliers.

Buyers can also learn more about the materials used and the common price ranges of certain designs.

Materials & designsManufacturing & QCPricing
  • Handicrafts are fashioned from a wide range of domestically sourced materials, including wood, metal and fabric.

  • Suppliers are upcycling waste materials and using reclaimed wood.

  • Designs feature themes that reflect the country’s culture.

  • Handicrafts are made using hand tools and simple machines.

  • Indonesia is widely known for its wooden carvings of Buddha and nature-inspired designs.

  • Three to eight people usually form a QC team.

  • Prices are based mainly on the materials used and design complexity of the product.

  • Products with more handcrafted details are generally priced higher than simple designs.

  • Wooden ethnic masks and word art are widely available for less than $10.

Materials & designs

Handicrafts from Indonesia cover a range of products made of wood, metal, fabrics and other domestically available materials.

Wooden crafts from Indonesia comprise various types of home decor, including relief panels, clocks, boxes, lamps, frames, figurines and statues. Mahogany, pine, teak and suar wood are among the common raw material options. Wooden craft makers use timber that is certified compliant with Sistem Verifikasi Legalitas Kayu (SVLK), Indonesia’s national timber legality assurance system.

Companies often source mahogany from Central Borneo and pine from Java island. Teak is also procured from Java, as well as the provinces of East Nusa Tenggara, South East Nusa Tenggara and South Sulawesi. Suar wood can be obtained from several places in Indonesia, including the islands of Java, Sulawesi and Sumatra.

Handcrafted metal wall art and tabletop decor are usually created using iron, aluminum, steel, copper and silver. Aluminum is found on the island of Sumatra, while steel can be procured from Java island. Copper is usually sourced from the province of West Papua, which is one of the largest sources of copper in the world. Craft makers that use silver typically obtain the material from ANTAM, a state-invested mining and metals company.

Hand-dyed scarves, shawls and other wraps come in cotton, silk, polyester and rayon. Cotton is sourced from Java, while silk is obtained from the provinces of Central Java and South Sulawesi. Suppliers using polyester get the material from Central Java and West Java provinces. Rayon is procured from Java and Bali.

Amid the growing environmental consciousness among buyers, many suppliers are upcycling materials such as cornhusks and coconut shells. Cornhusk, sourced from Surabaya in the province of East Java, is used to make floral arrangements and other home decor such as baskets and potpourri. Coconut shells from the islands of Bali and Java are made into bags, lamps, decorative tableware and other ornaments.

Wooden craft makers, meanwhile, are turning to reclaimed timber from factory crates and old buildings for the manufacture of wall art, table lamps, candleholders, photo frames and keychains. Roots and branches are also being utilized.

Craft designs in Indonesia typically feature religious figures, mythical creatures and nature-inspired motifs that reflect the local culture. Buddha and characters from the epic Ramayana are among the figures commonly depicted in wooden carvings, metal sculptures, paintings and batik fabrics. The naga, a mythical serpent, is also a popular figure in various handicrafts.

Batik patterns are also a popular motif. These can be seen not only in fabric crafts but in ceramic, wooden and leather handicrafts as well.

Aiming for a greater share of the global market, Indonesia’s craft suppliers are incorporating batik patterns and other traditional elements into mobile phone cases, bags and other products for the modern consumer.

Manufacturing & QC

Handicrafts are generally created using hand tools and simple machines.

To produce wooden statuettes, for instance, a block of wood is carved into shape with a chisel and a hammer. Details are created using a hook knife or a filing knife. Once the desired shape has been achieved, the surface is polished with sandpaper, then gasoline is applied on the product to protect against insects.

Metal wall art is made by cutting out sheets of the material and hammering the surface to create the required design. Figurines or statues are made by pouring liquid metal into clay molds and burying them deep into the ground to cool down. Once the metal has cooled, the mold is broken and the surface of the rough cast is filed and polished before the finish is applied.

Batik fabrics are created using a traditional method that involves covering the fabric with wax using a tool called canting to protect areas that will not be dyed. After the dye bath for the first color, the wax is removed to reveal the patterns. Wax is reapplied on the areas that need to remain in the original or the first dye color before being immersed in another hue. Batik patterns can also be created by using blocks to apply the wax.

Ceramic essential oil burners and figurines are produced by shaping the clay using knives, scrapers and other hand tools. The figures are fired in an oven to harden. Paint or glaze is applied once the pieces have hardened and cooled.

Indonesia craft makers usually have three to eight people in a QC team. These personnel check products against customer requirements on material quality, size, style and color.

Pricing

Craft gifts are priced depending mainly on the materials used and the intricacy of the design. Products with more handcrafted details are generally priced higher than simple designs.

In wooden crafts, for instance, a wall art made of pine or suar wood with minimal carved details is priced less than $10. Items between $10 and $20 include ethnic masks in teak and mahogany with more intricate carvings. Beyond $20, the selection includes relief sculptures depicting Buddha and other religious figures, flowers and animals. Relief panels featuring multiple carved figures can exceed $100.

For wall-mount metal artwork, animal figures and word art priced below $10 are typically made of iron. Products in the range $10 to $20 have more intricate designs, which may come in copper or aluminum. Complex steel and silver sculptures are available higher up the price range.

In fabric crafts, neck and head scarves below $5 are mostly made of cotton or rayon. Handsewn silk designs are priced higher than $5. Hand-dyed or handprinted patterns push up quotes.

Essential oil burners made of ceramic under $2 are typically simple structures with animal- or floral-themed accents. Higher up the price range, the selection comprises novelty shapes and intricate designs with a religious, ethnic or nature motif. Marble and limestone are raw material options for models priced over $4.

Price guide

Price guide: Wooden wall art
Less than $10
Ethnic mask or word art; pine or suar wood; batik pattern; minimal carved details
$10 to $20
Ethnic mask; mahogany or teak; batik pattern; intricately carved details
More than $20
Mask or relief sculpture of Buddha, flowers or animals; teak, mahogany or suar wood; intricately carved details
 

Click image to enlarge.

Indonesia crafts product features Typical Components of a wooden metal art

Price guide: Metal wall art
Less than $10
Animal sculpture or word art; iron; handpainted; simple design
$10 to $20
Animal sculpture, puppet figure or word art; iron, copper or aluminum; handpainted; intricate design
More than $20
Animal or abstract sculpture; steel, copper, aluminum or silver; handpainted; intricate design

Indonesia sourcing crafts product features Typical Component of a metal wall art

 
Price guide: Scarves
Less than $3
Neck scarf; rayon or cotton; plain, floral, geometric and stripe designs; fringe ends; antique imitation
$3 to $5
Head or neck scarf; rayon or cotton; tie-dyed, traditional batik, floral or stripe pattern; fringe ends
More than $5
Head or neck scarf; handmade silk, rayon knit or cotton; tie-dyed, traditional batik, floral or stripe pattern

Indonesia sourcing crafts product features Typical Component of a scarf

 
Price guide: Essential oil burners
Less than $2
Ceramic; simple structure; minimal animal- or floral-themed embellishments; 2 to 3in in height
$2 to $4
Ceramic; features novelty shape or decorative details with religious, ethnic or nature theme; 2 to 4in in height
More than $4
Ceramic, marble, or limestone and brass; floral, intricate details with ethnic or nature theme; earth colors; more than 3in in height

Indonesia crafts

 

Indonesia Sourcing: Craft gifts 2017 Supplier survey

Indonesia Sourcing: Crafts 2017

Indonesia Sourcing: Craft gifts 2017

• Wooden crafts • Metal crafts
• Fabric crafts • Other craft gifts

To give buyers first-hand information from active craft gift exporters in Indonesia, we’ve surveyed the manufacturers featured on this site.

Export pricesExport markets & salesProduct trendsChallenges
  • Craft suppliers in Indonesia are keeping price adjustments to a minimum.

  • Most companies will be capping increases at 10 percent.

  • Labor cost was named as the main reason for price adjustments.


  • Suppliers generally have an optimistic outlook on export sales.

  • Companies expect to attract more clients through online advertisements and social media.

  • Most craft suppliers will target the EU or the Asia-Pacific region.

  • Designs combining ethnic and modern elements are expected to increase.

  • A number of suppliers will be expanding into home textiles and other product lines.

  • Adoption of environment-friendly materials will remain a trend.

  • Price competition is the primary concern of many craft makers.

  • Finding skilled workers and rising labor costs are also major concerns.

  • For a number of companies, expanding market reach is also a challenge.

Export prices

Craft suppliers in Indonesia are keen to keep price increases at a minimum. Among 19 suppliers that answered our question regarding pricing for the next six months, 53 percent intend to maintain current quotes because they expect production costs to remain steady. Five percent plan on decreasing prices.

More than 40 percent of interviewed producers will be raising quotes. Of these companies, however, 62 percent will be capping increases at 5 percent and one-fourth will be keeping adjustments within 6 to 10 percent. Only 13 percent are eyeing larger increases.

Indonesia Crafts Survey Export Prices

Projected adjustments in prices are due mainly to higher labor costs. Minimum wages in Indonesia are now about 8 percent higher than they were in 2016.

Export markets & sales

Indonesia craft suppliers are optimistic sales will increase in the coming months. Of the 19 companies surveyed for this report, 47 percent see revenue from overseas markets rising by up to 10 percent and 21 percent are anticipating higher growth. Companies expect to attract more clients through online advertisements and social media.

The Asia-Pacific region and EU will be the key export destinations. Among surveyed suppliers, 37 percent chose the former as their main target market in the next 12 months and a similar number selected the EU. Kamar Kayu, a wooden craft supplier, noted in an interview with the Hinrich Foundation that handcrafted items made of natural materials appeal to clients in these areas.

More models combining ethnic and modern elements are expected. Of the 19 survey respondents, 37 percent indicated this will be the focus of R&D efforts in coming months. Products in line with this trend include 3-D paper crafts and wooden mobile phone cases with carvings depicting religious and mythical figures.

For 26 percent of the companies surveyed, product development efforts will revolve around enhancing aesthetics. More than 10 percent of the respondents will be releasing multifunction designs and 5 percent will be adopting environment-friendly materials.

 

Indonesia crafts Supplier Survey Export Forecast

The remaining respondents intend to expand into new product lines. Bakul Etnik, which recently offered home textiles such as bedsheets and covers, intends to release bags and wallets.

Challenges

Many suppliers consider price competition, especially with China counterparts, to be the main challenge they are facing.

Attracting and retaining skilled workers is another challenge facing the industry. Of the 19 suppliers surveyed, 23 percent indicated finding employees with the required technical skills as an issue. To resolve this, makers provide training in skills such as paper crafting and carving to new employees. They also offer commissions to encourage efficient production and performance.

For 18 percent of survey respondents, rising labor costs are the main concern. Jakarta’s minimum wages, for one, are at 3,355,750 Indonesian rupiah (about $250) per month, up from 3,350,000 Indonesian rupiah per month (about $250) in 2016. In Yogyakarta, where many furniture and crafts producers are based, monthly rates are at 1,337,645 Indonesian rupiah (about $100), an increase from 1,200,000 Indonesian rupiah (about $90) in 2016.

Indonesia crafts Supplier Survey Key Findings

Finding new markets is also a concern, due primarily to the costs involved. Buyers typically request free samples, which means spending for shipping. Additionally, several countries require certificates of compliance, which are costly and time-consuming to obtain.

Indonesia Sourcing: Craft gifts 2017 PDF download

Indonesia Sourcing: Crafts 2017

Indonesia Sourcing: Craft gifts 2017

• Wooden crafts • Metal crafts
• Fabric crafts • Other craft gifts

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Industry overview

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  • Exports of statuettes & other ornaments
  • Supplier locations map

Product features

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  • Highlights
  • Materials & designs
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  • Price guide
  • Indonesia craft gift suppliers

Supplier survey

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  • Export prices
  • Export markets & sales
  • Product trends
  • Challenges
  • Indonesia craft gift suppliers

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  • Export prices
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  • Key findings

Indonesia Sourcing: Craft gifts 2017 Supplier list

Indonesia craft gift suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured onSupplier status
Wooden craftsMetal craftsFabric craftsOther crafts
CV Bakul Active    
Bakul Etnik Active   
CV Bali Anugraha
Active
Bintoro Craft Active   
Cinderamata Jogja Active  
CV Bali Anugraha Active
CV Bali Cantik Active  
CV Jalan Kayu Active    
CV Maju Karya Sentosa
Active    
CV Prime Java Active   
CV Spoleno Artspace Active   
Innovative Art Active    
Jabo Creative Craft Active  
Jorajona Crafts Active   
Kamar Kayu Active    
Little Aira Active   
Lowpolypaper Crafts Active    
Makrifat Business Active   
PT Dekor Asia Jayakarya Active   
Sangkan Sculpture Design Active    
Tattwa Nusantara Active