Indonesia Sourcing: Furniture 2017

 

In Indonesia Sourcing: Furniture 2017, buyers can find:

Verified exporters – 20 featured suppliers offering various types of furniture

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: Furniture 2017 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Indonesia exported approximately $1.09 billion worth of furniture under HS code 9403 in 2016.

  • The US , Japan, France, the UK and the Netherlands are among the top destinations of furniture from Indonesia.

  • Indonesia is targeting furniture and craft exports of $5 billion by 2020.

  • Teak and mahogany are the main timber species used in wooden furniture.

  • Among nonwood forest products, rattan and bamboo are the preferred materials.

  • Pricing depends mainly on the material used, the size of the product and the intricacy of the design.

  • Prices of Indonesia-made furniture are expected to remain relatively stable in the next six months.

  • Basic or simple designs and eco-friendly materials are expected to be a trend in upcoming releases.

  • Several companies plan to gain or strengthen their foothold in markets other than the US and the EU.

Indonesia Sourcing: Furniture 2017 Suppliers & products

Indonesia Sourcing: Furniture 2017 Suppliers and products

Indonesia Sourcing: Furniture 2017

• Bedroom furniture • Dining & kitchen furniture • Living room furniture • Outdoor furniture

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.

Bedroom furniture   
Indonesia Sourcing Furniture 2017 suppliers and products
Dining & kitchen furniture   
Philippines Sourcing Furniture 2017 suppliers and products
Living room furniture   
Indonesia Sourcing Furniture 2017
Outdoor furniture   
Indonesia Sourcing Furniture 2017 suppliers and products

Indonesia Sourcing: Furniture 2017 Industry overview

Indonesia Sourcing: Furniture 2017

Indonesia Sourcing: Furniture 2017

• Bedroom furniture • Dining & kitchen furniture • Living room furniture • Outdoor furniture

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

Indonesia furniture exportsCompetitive advantagesChallengesIndustry composition
  • Indonesia exported about $1.09 billion worth of furniture under HS code 9403 in 2016.

  • The US , Japan, France, the UK and the Netherlands are among the top destinations of furniture from Indonesia.

  • Indonesia is aiming for furniture and craft exports of $5 billion by 2020.

  • Among the factors supporting the competitiveness of Indonesia’s furniture industry is the domestic availability of various materials.

  • The industry also benefits from having access to a large pool of skilled workers, including carvers and carpenters.

  • Another advantage of the sector is the strong support it receives from the government.

  • Rising costs are making it more difficult for Indonesia furniture makers to compete on price.

  • For a number of suppliers, stricter timber regulations are hindering business growth.

  • Producing new designs that will appeal to buyers is a challenge for many suppliers.
  • The Indonesian Furniture Entrepreneurs Association has about 3,000 member companies.

  • The majority of the industry consists of small and midsize enterprises.

  • Small furniture makers can produce up to 10 containers monthly.

Exports

Indonesia is one of the top furniture exporters in the world. In 2015, the country ranked as the no. 13 exporter of furniture under HS code 9403 in terms of value, according to data extracted from the DESA/UNSD, United Nations Comtrade database.

The US was the top market, accounting for 41 percent of the value. The other key destinations were Japan, France, the UK and the Netherlands.

Indonesia is aiming for furniture and craft exports of $5 billion by 2020, targeting mostly the US, Japan and Western Europe, Tempo reported March 12, 2017, citing Industry Minister Airlangga Hartarto. Exports, however, are currently on a downtrend. Data from Badan Pusat Statistik (Statistics Indonesia) show that 2015 exports under HS code 9403 slipped 7 percent year over year to about $1.17 billion. In 2016, the value of products sent overseas went down to $1.09 billion.

The decline was attributed in part to closure of some large furniture companies’ factories. Among those that have shut down their manufacturing facilities in Indonesia and shifted production to other countries are US-based Maitland-Smith and Taiwan-based Woodworth Wooden Industries.

The decline was attributed in part to closure of some large furniture companies’ factories. Among those that have shut down their manufacturing facilities in Indonesia and shifted production to other countries are US-based Maitland-Smith and Taiwan-based Woodworth Wooden Industries.

Increased regulatory requirements have also made it difficult for small and midsize makers to boost exports. The US, the EU and several other markets now require certification that the timber used in wooden products has been legally acquired.

Indonesia Sourcing: Furniture 2017

To increase sales, many Indonesia furniture suppliers are intensifying their online marketing efforts, using free or paid online platforms. They are also participating in local and international trade exhibitions and joining workshops and events held by trade associations to widen their network.

One of the trade shows for furniture makers is the Indonesia International Furniture Expo (IFEX). IFEX, which is held in Jakarta, is hosted by the Indonesia Furniture Industry and Craft Association (HIMKI) and organized by PT Dyandra Promosindo. It is supported by the Ministry of Trade, the Ministry of Industry, the Ministry of Small-Medium Enterprise and the Ministry of Tourism. The most recent edition of the show, which was held March 11-14, 2017, attracted more than 10,000 local and international visitors.

North America and the EU remain important markets, but a number of suppliers also intend to gain or strengthen their foothold in the non-EU countries, South and Central America, Africa, the Middle East and the Asia-Pacific region. Several also plan on increasing penetration of the domestic market.

Competitive advantages

Among the factors supporting the competitiveness of Indonesia’s furniture industry is the domestic availability of various materials.

Indonesia has more than 91 million hectares of forested land, which includes primary or otherwise naturally regenerated forests and planted forests, according to FAO. Teak, meranti, keruing, kapur and mersawa are some of the species found in these forests.

In terms of non-wood forest products, the country is world’s top producer of rattan, accounting for over 80 percent of the global supply. Among the major sources of rattan in the country are Kalimantan and the islands of Sulawesi and Sumatra.

Indonesia’s furniture industry also benefits from having access to a large pool of skilled workers, including carvers and carpenters whose techniques have been passed down from previous generations. Jepara in Central Java, which is known for wooden furniture, has a wood carving history that dates back centuries.

Another advantage of the sector is the strong support it receives from the government. Among the initiatives of the government that has facilitated exports is the timber legality assurance system, Sistem Verifikasi Legalitas Kayu (SVLK), which assures buyers that the material used in furniture and other wooden products was obtained legally.

In November 2016, Indonesia became the first country to issue Forest Law Enforcement, Governance and Trade (FLEGT) licenses as a result of a Voluntary Partnership Agreement (VPA) with the EU. FLEGT-licensed products automatically meet the requirements of the EU Timber Regulation (EUTR), which prohibits illegally harvested timber and products from illegal timber from being placed on the market. Importers of FLEGT-licensed products in member states can place these products on the market without the need to conduct further due diligence.

To provide more skilled workers for the industry, the government also planning to set up a polytechnic in Semarang, Central Java, specializing in furniture.

Challenges

Competition from suppliers in China, Vietnam and other neighboring production hubs is a major concern of the industry. Rising costs are making it more difficult for Indonesia furniture makers to compete on price.

Wages for skilled artisans and other furniture workers, in particular, have significantly increased. Jakarta, for instance, raised monthly minimum wages more than 8 percent to 3,355,750 Indonesian rupiah in early 2017, an 8.25% increase over the 2016 provincial minimum wage, from its previous level of 3,100,000 Indonesian rupiah. As of March 23, $1 is equivalent to about 13,315.60 Indonesian rupiah.

For a number of suppliers, stricter timber regulations are hindering business growth. While the SVLK, has been a boon to those that have been able to apply for certification, many small and midsize suppliers are unable to take advantage of the opportunity because of lack of funds. Applying for SVLK certification can cost about $3,600 or more depending on the business category.

To address this concern, some local governments are prepared to give subsidies to SMEs, according to an August 2016 report by The Jakarta Post, which cited Director General of Foreign Trade, Ministry of Foreign Affairs, Dody Edward. Edward also advised regional governments to organize SMEs to apply for a group certification so that the cost of $3,600 can be shared.

Another challenge for the industry is the creation of more in-house designs, as many companies have limited resources to invest in market research and product development. To build up the sector’s ODM capability, the Ministry of Trade inked an agreement with the Bandung Institute of Technology’s School of Arts and Design under which seminars and workshops will be offered to improve suppliers’ skills in design and marketing.

Industry composition & hubs 

There are no official statistics on the number of furniture makers in Indonesia, but the Indonesian Furniture Entrepreneurs Association has about 3,000 member companies. The majority of the industry consists of small and midsize enterprises offering wooden or rattan furniture that is produced partly by hand and by machines.

Small furniture makers have up to 19 workers. Occupying about 500sqm, most of these factories produce up to 10 containers monthly. Total annual sales at these companies do not exceed $75,000.

Midsize companies have fewer than 100 employees and have factories of up to 2,000sqm. These enterprises have a monthly output of at least 10 containers, and their yearly sales can reach $750,000.

Manufacturers with larger workforces and factories can typically produce more than 20 containers monthly. These suppliers can generate over $750,000 in annual sales.

Supplier locations map

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

Indonesia Sourcing: Furniture 2017

Indonesia Sourcing: Furniture 2017 Product features

Indonesia Sourcing: Furniture 2017 Product Features Living room furniture Dining & kitchen furniture Bedroom furniture Bar & bistro furniture Outdoor furniture

Indonesia Sourcing: Furniture 2017

• Bedroom furniture • Dining & kitchen furniture • Living room furniture • Outdoor furniture

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

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

Materials & designsManufacturing & QCPricing
  • Raw material options include wood and nonwood forest products, plastic and metal.

  • Models offered include modern designs with simple structures, as well as elaborate antique reproduction pieces.

  • Space-saving structures and eco-friendly materials are anticipated trends in upcoming releases.
  • The majority of production processes are typically done in-house.

  • Quality control is conducted at every stage of production, typically by a team of up to five members.

  • Wooden furniture makers ensure that materials meet SVLK and the FSC chain-of-custody requirements.
  • Prices depend mainly on the material and size of the product.

  • Intricate carvings and other details push up the price of a product.

  • In outdoor furniture, features such as armrests, cushions and pullout trays mean higher quotes.

Materials & designs

Indonesia’s furniture selection comprises models made of wood and nonwood forest products, as well as pieces in plastic and metal. Most materials are sourced domestically.

For hardwood, teak and mahogany are the main options. Teak is sourced from the island of Java and the provinces of South Sulawesi, South East Nusa Tenggara and East Nusa Tenggara. Mahogany is obtained mainly from Java and the Special Region of Yogyakarta.

Among nonwood forest products, rattan and bamboo are the preferred materials. Rattan is obtained from Kalimantan, Nusa Tenggara, Irian Jaya and the islands of Sulawesi and Sumatra. Bamboo can be found in almost every island, including Bali and Java.

Some suppliers adopt aluminum or steel, which are both obtained domestically, as a frame or base. Aluminum is sourced from the province of North Sumatra, while steel is procured from Java and Jakarta.

For outdoor furniture, synthetic rattan made from PE or PP is also used.

Releases from Indonesia furniture makers are expected to include more environment-friendly products, including pieces made of reclaimed teak and other types of wood.

In terms of design, products range from modern designs with simple structures to elaborate antique reproduction pieces. Upcoming releases are anticipated to have simple, compact or minimalist designs.

Amid the demand for more space-saving furniture, many releases will have foldable or knockdown structures. Multifunction models such as chairs that can be converted to ladders are also expected to grow in number.

OEM orders, based on client specifications or common designs, account for the majority of the furniture industry’s business. Among the 3,000 member companies of the Indonesia Furniture Entrepreneur Association, only 3 to 5 percent engage in ODM, The Jakarta Post reported March 12, 2016, citing Hari Basuk, the association’s research and inter-department division head.

Many furniture companies have no more than five designers. Suppliers release to five to 10 new models monthly.

Manufacturing & QC

In the production of wooden furniture, the first stage of production involves timber processing, which is often done at a sawmill. This stage includes splitting and sorting the logs according to size and variety and drying them outdoors and in a kiln to reduce moisture content to no more than 15 percent.

After drying, the logs are transported to the furniture-making factory or workshop where they are cut into the specified dimensions using various handheld tools or equipment such as sawing, planing and sanding machines.

Once the various parts are cut, and carved depending on the design, the different pieces are then assembled by hand before varnishing or painting and other finishing touches take place.

In the production of rattan furniture, rattan stems are cut, sorted and dried for several days. Larger stems are used to create the frame or base of the furniture, and the rest are used for the wicker parts. Rattan weaving is typically done by hand.

Quality control is conducted at every stage of production, typically by a team of up to five members. For many companies, this includes ensuring that raw materials meet client specifications and conform to the requirements of Indonesia’s timber legality assurance system and the Forest Stewardship Council’s chain of custody. Finished pieces are checked against client specifications and market requirements.

Production can take from 30 to 90 days after the confirmation of the order depending on the client’s specifications, the country where it is to be exported and other factors. MOQ is usually one TEU or FEU, which can contain various pieces.

Pricing

Furniture prices are determined by the material used, the size of the product and the intricacy of the design. Larger items are generally more expensive. Models with intricate carvings and other details, which require more work, also tend to have a higher price than simpler pieces.

Single and double beds with rattan, bamboo or teak frames are available for less than $300. The selection between $300 and $600 include double and queen-size designs with teak or mahogany frames. Higher up the price ladder are versions that feature intricate carvings or a gold leaf finish.

For dining sets, four- to six-seater models sold for less than $300 are typically in pine, rattan or bamboo. Six-seater upholstered sets in rattan or teak can reach $500. Versions in mahogany, teak or acacia wood with intricate carvings or gold leaf finish are priced higher.

In living room furniture, armchair and two-seater sofas with bamboo, rattan or teak frames are available for less than $200. More expensive designs include three-seater sofas with teak or mahogany frames. Models exceeding $500 are typically antique-style pieces with intricate carvings.

For outdoor seating, options below $150 include chaise lounges with bamboo, teak or synthetic rattan frames. Between $150 and $400, benches and chaise lounges with mahogany frames are available. Features such as pullout drink trays and wheels will push models higher up the price ladder.

Price guide

Price guide: Beds
Less than $300
Single or double bed; rattan, bamboo or teak frame; painted or varnished
$500 to $800
Double or queen-size bed; teak or mahogany frame; painted or varnished
More than $800
Double, queen-size or king-size bed; teak or mahogany frame; painted or varnished; with intricate carvings or gold leaf finish

Typical parts of a bed

Price guide: Dining sets
Less than $300
Modern or antique style; pine, rattan or bamboo; painted or varnished; four to six chairs
$300 to $500
Modern or antique style; teak or rattan; painted or varnished; table with glass top; upholstered chairs or benches for six
More than $500
Antique style; acacia, mahogany or teak; painted or varnished; with intricate carvings or gold leaf finish; six to eight upholstered chairs

Click image to enlarge.

Typical parts of a dining set

Price guide: Sofas
Less than $200
Armchair or two-seater sofa; teak, bamboo or rattan frame; natural finish; synthetic leather upholstery
$200 to $500
Sectional or antique reproduction sofa; teak or mahogany frame; fabric or leather upholstery; seats three or more
More than $500
Sectional or antique reproduction sofa; teak or mahogany frame with intricate carvings; fabric upholstery; may come with matching side tables and other pieces

Typical parts of a sofa

Price guide: Outdoor chaise lounges
Less than $170
Single-seater; aluminum, synthetic rattan or teak; without armrests; may come with cushions
$170 to $400
Single-seater; aluminum, synthetic rattan or teak; may come with armrests, cushions, pullout drink trays and wheels
More than $400
Two-seater; rattan or teak; may come with armrests, cushions, pullout drink trays and wheels

Typical parts of a chaise lounge

Indonesia Sourcing: Furniture 2017 Product features

Indonesia Sourcing: Furniture 2017 Supplier Survey

Indonesia Sourcing: Furniture 2017

• Bedroom furniture • Dining & kitchen furniture • Living room furniture • Outdoor furniture

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

PricesExport markets & salesProduct trendsChallenges
  • Many furniture makers intend to keep prices at current levels for the next six months.

  • Surveyed suppliers planning to raise quotes will keep adjustments within 15 percent.

  • Suppliers are adjusting prices to cover the higher cost of labor, fuel and other inputs.

  • Suppliers are cautiously optimistic about exports in the next 12 months.

  • The majority of survey respondents see export sales remaining flat or increasing by up to 10 percent.

  • Several companies plan to gain or strengthen their foothold in markets other than the US and the EU.

  • Basic or simple designs and eco-friendly materials are expected to be a trend in upcoming releases.

  • Multifunction models are also expected to increase.

  • Designs from Indonesia are also expected to become more ergonomic and durable.

  • Price competition is the main concern of most makers.

  • Several suppliers are concerned about finding new export markets, as well as increasing material costs.

  • Companies also find it challenging to create new designs that will appeal to buyers.

Prices

Indonesia furniture prices are anticipated to be relatively stable in the next six months. Among 20 surveyed suppliers, 65 percent plan to keep prices at current levels and 5 percent intend to cut quotes to stay competitive.

Suppliers planning to increase prices intend to keep adjustments within 15 percent. Fifty percent of these companies expect adjustments to range from 6 to 10 percent. Thirty-three percent will raise quotes by 5 percent, and the rest see prices going up by 11 to 15 percent. Suppliers are adjusting prices to maintain margins amid the rising cost of labor, fuel and other manufacturing inputs.

Indonesia furniture survey prices

Export markets & sales

Survey results indicate that furniture suppliers are cautiously optimistic about exports in the next 12 months. Half of the interviewed companies expect sales to remain flat, in part due to uncertainty on how policy changes in the US and the EU may affect demand.

Thirty-five percent of the surveyed companies are optimistic export sales will increase up to 10 percent. Five percent see increases reaching 20 percent, and another 5 percent are anticipating higher growth.

Amid the implementation of the FLEGT licensing, many suppliers intend to boost exports to the EU. Of the survey respondents, 21 percent indicated that the EU will be their most important target market in the next 12 months.

The remaining companies intend to gain or strengthen their foothold in Africa, the Asia-Pacific region, the Middle East and non-EU member countries.

Indonesia Sourcing: Furniture Supplier Survey Export Forecast

Basic or simple designs and environment-friendly materials are expected to be a trend in upcoming releases. Among surveyed suppliers, 55 percent will be focusing efforts on simple and multifunction structures that will be suitable for small floor spaces.

Thirty percent, meanwhile, intend to increase their use of environment-friendly materials such as wood from durian, mango and jackfruit trees that can be found in Indonesia.

Furniture from Indonesia are also anticipated to become more ergonomic and durable. Releases from Indonesia will include more chaise lounges with armrests and adjustable backs.

Challenges

For most suppliers, price competition is the primary concern. Competition with companies in Vietnam, in particular, is a challenge because it has lower production costs. Competing with China suppliers on price, on the other hand, is difficult because they can offer faster lead times.

Concerns about price competition are exacerbated by the rising cost of manufacturing inputs, including labor and timber. Among survey respondents, 17 percent indicated material costs and availability as a challenge.

For some companies, stringent regulatory requirements are also a challenge, in part due to the cost of acquiring the necessary certification. Acquiring SVLK certification, for example, requires more than $3,000, which most SMEs cannot afford.

Indonesia Sourcing: Furniture Supplier Survey Key Findings

Creating new designs is another major challenge due to the limited financial resources of many companies. Makers also find it risky to offer new products since buyers may not like them, entailing a loss in sales.

Indonesia Sourcing: Furniture 2017 PDF download

Indonesia Sourcing: Furniture 2017 Suppliers and products

Indonesia Sourcing: Furniture 2017

• Bedroom furniture • Dining & kitchen furniture • Living room furniture • Outdoor furniture

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Industry overview

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  • Exports
  • Competitive advantages
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  • Indonesia furniture suppliers

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  • Indonesia furniture exports
  • Supplier locations map

Product features

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  • Highlights
  • Materials & designs
  • Manufacturing & QC
  • Pricing
  • Price guide
  • Indonesia furniture suppliers

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  • Supplier exports

Supplier survey

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  • Highlights
  • Prices
  • Export markets & sales
  • Product trends
  • Challenges
  • Indonesia furniture suppliers

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  • Export prices
  • Export forecasts
  • Key findings

Indonesia Sourcing: Furniture 2017 Supplier list

Indonesia furniture suppliers

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

Suppliers featured on
Supplier statusBedroom furnitureDining & kitchen furnitureLiving room furnitureOutdoor furniture
Aulia Margojoyo Furniture

Active
CV Bangun Joyo Furniture
Active
CV Farrel
Active
CV Kembang Square
Active  
CV Mebel Jati Jepara
Active
CV Republic Furniture Jepara
Active
CV Ribka Furniture Active
CV Sudiazi Putra

Active
CV Unique Indonesia

Active
Ina Antique Furniture
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Indoplanet Furniture
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Istana Perabot Furniture
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Karya Binangun

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Laras Furniture International
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Mlampah Kanjeng
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Piguno Furniture
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PT Hartco Utama
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PT President Furniture
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PT Primaja Indo Kreasi
Active
PT Segoro Mas Solo
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