Indonesia Sourcing: Home decor 2018

 

Indonesia Sourcing: Home decor 2018 is a comprehensive guide for buyers interested in home accessories, vases, pottery, home textiles and lamps from Indonesia. In this report, buyers can find:

Verified exporters – 16 featured suppliers offering home accessories, vases & pottery, home textiles and lamps

Products – Full-color images with specifications and 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: Home decor 2018 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Handicraft exports in 2017, which also include home decor, amounted to $776 million, according to data from the Central Bureau of Statistics.

  • Access to raw materials such as wood and rattan is one of the main advantages of suppliers.

  • Most home decor makers are based in West Java, East Java, Yogyakarta and Bali.
  • Indonesia home decor suppliers use several materials such as wood, fabrics, plants and metal.

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

  • Lead time for home decor products is four to six weeks.
  • Most suppliers intend to keep prices the same in the next six months.

  • Functional home decor pieces will be popular in coming months.

  • Surveyed companies are optimistic export sales will increase in the next 12 months.

Indonesia Sourcing: Home decor 2018 Suppliers & products

Indonesia Sourcing: Home decor 2018

Indonesia Sourcing: Home decor 2018

• Home accessories • Vases & pottery
• Home textiles • Lamps

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.

Home accessories   
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Vases & pottery   
Indonesia-home-decorIndonesia-home-decorIndonesia-home-decorIndonesia-home-decor
Home textiles   
Indonesia-home-decorIndonesia-home-decorIndonesia-home-decorIndonesia-home-decor
Lamps   
Indonesia-home-decorIndonesia-home-decorIndonesia-home-decorIndonesia-home-decor

Indonesia Sourcing: Home decor 2018 Industry overview

Indonesia Sourcing: Crafts Industry Overview

Indonesia Sourcing: Home decor 2018

• Home accessories • Vases & pottery
• Home textiles • Lamps

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

Indonesia's home decor exportsCompetitive advantagesChallengesIndustry composition
  • Handicraft exports in 2017 amounted to $776 million, according to data from the Central Bureau of Statistics.

  • The government has targeted $2 billion and $2.5 billion worth of exports for the furniture and handicraft segments in 2018 and 2019, respectively.
  • Popular home decor items include wooden handicrafts and handwoven bamboo baskets.
  • Access to raw materials such as wood and rattan is one of the main advantages of suppliers.

  • The industry receives support from the government and trade associations to boost exports.

  • The handicrafts sector has a large workforce.

  • A number of export and import regulations are hampering the growth of the sector.

  • Entering new markets is a challenge for some producers.

  • Suppliers are also concerned about the rising costs of materials.

  • Indonesia has 140,000 business units engaged in the furniture and home decor, according to the Ministry of Industry.

  • Handicraft companies have a total export value of $2.6 billion, consisting $1.6 billion for furniture and $800 million for home decor.

  • Most home decor makers are based in West Java, East Java, Yogyakarta and Bali.

The Indonesia home decor industry is currently enjoying the support of the government and trade associations to boost exports. In particular, the Ministry of Industry has been active in implementing policies and projects to increase the sector’s global competitiveness.

For example, the Ministry has established home decor and furniture industries as one of the national priority sectors this year, as announced by the Ministry’s General Secretary at the opening of the Jogja International Furniture and Craft Fair Indonesia last March. This recommendation has come into force after considering the sector’s global competitiveness, export attractiveness, ability to add high value and absorb a large number of manpower, as well as the abundance of raw materials of wood, rattan and bamboo. Handicraft, home decor and furniture industries are labor-intensive markets, which are able to employ up to 500,000 workers, according to an official statement of the Ministry of Cooperatives and Small and Medium Enterprises (SMEs).

Further, the General Directorate of SMEs of the Ministry of Industry assists craftsmen to register their intellectual property rights. This step is important for new designs of home decor, furniture and handicraft products that will participate in various exhibitions to prevent copyright violations. Additionally, the Directorate General also facilitates Timber Legality Verification Certification for SMEs to ensure that home decor producers are able to fulfill export requirements.

Meanwhile, in order to boost the marketing activities of the sector, the Ministry of Cooperatives and SMEs conducted various international, national, and regional exhibitions to give opportunities for local industries to reach out to international buyers. One of the significant annual events is the Indonesia International Furniture Expo (IFEX), which is held every March and features a wide range of products by around 500 exhibitors of indoor and outdoor furniture, home decor and handicrafts.

Local trade associations also extend their support to Indonesia home decor suppliers. The Indonesian Furniture and Handicraft Industry Association (HIMKI), for example, is currently building a Polytechnic of Furniture Industry and Wood Processing center to teach makers to be good designers.

Indonesia Home decor Industry Overview Supplier Exports

The polytechnic center is currently built on two hectares of land in Kendal, Central Java, to accommodate a four-story building. The main facilities will consist of classrooms, workshops, a showroom, and a laboratory. The construction is expected to be completed next year so that the first batch can be enrolled. For now, there will only be furniture and woodworking classes, but other programs will be added in the future, including Furniture Production Engineering, Furniture Design, and Furniture Business Management. During the first five years, all the students will have free tuition fees through scholarships and work contracts.

Exports

The government has targeted $2 billion and $2.5 billion worth of exports for the furniture and handicraft segments in 2018 and 2019, respectively. However, HIMKI is targeting to reach $5 billion worth of overseas shipments for their members per year, a much higher aim than the government’s.

According to the Central Bureau of Statistics data, the export value of handicraft products in 2017 was $776 million, increasing 3.8 percent from 2016. However, total overseas shipments of local home decor declined 11 percent to $203.4 million in 2017 from $228.5 million in 2016. Popular home decor items include wooden handicrafts and handwoven bamboo baskets.

The Ministry of Cooperatives and SMEs are targeting Saudi Arabia, Germany, Singapore, Australia, India, Pakistan, the UK, the US, Mexico, Japan, Spain, South Africa, South Korea, and Mongolia as export markets for this year.

In an effort to introduce local home decor makers to more foreign clients, HIMKI has signed an agreement with the Jordanian Business Council of Indonesia (IJBC) to build a House of Indonesia in Amman, Jordan, to introduce products from Indonesia to the Middle East market, with Jordan as the entry point. The products will be curated to ensure high quality.

Further, during Decofair 2017 at Hilton Hotel in Jeddah, Saudi Arabia, home decor items from Indonesia garnered interest from buyers in Saudi Arabia and India. Rattan and wooden crafts with European styles are in high demand. Most of the interested buyers are big companies engaged in interior design for luxury hotels in the Middle East.

Competitive advantages

Home decor suppliers in Indonesia consider the local availability of raw materials as the industry’s major advantage. Indonesia has abundant natural resources as the world’s largest rattan producer, and has access to a variety of wood types such as teak, the main component used for furniture and home decor.

Another strength that buoys the sector is a large pool of skilled workforce. The country has an established reputation within the furniture and handicrafts sectors in the regional and global markets due to Indonesia’s strong traditions in woodwork and artistic crafts. Indonesia has also become a highly attractive market as a manufacturing base for furniture companies due to the country’s competitive labor wages in addition to the wide availability of skilled carpenters and woodcarvers.

Finally, the country has strong economic prospects that boost the home decor sector. Indonesia’s domestic furniture and home decor markets have been growing steadily in line with the growth of the middle class and consumer purchasing power, as well as home ownership among those of productive and working age.

Challenges

A number of hurdles face the Indonesia home decor industry. First of these are the regulations that suppliers deem to be hampering the growth of the sector. There are approximately 32 regulations that suppliers are considering as cumbersome. The most prominent one is the Timber Legality Verification System, which is considered to impose high costs by obligating SMEs to build expensive infrastructure and additional logistics. Local home decor manufacturers also point to import duties on semi-finished products and even raw materials as a problem, since SMEs import 30 percent of their raw materials.

Furthermore, there is a plan to open the export of logs and rattan raw materials, which trade associations such as HIMKI are opposing. For the past 16 years, the government has been banning any company in Indonesia to export logs and raw rattan to protect local furniture and handicraft industries. However, in November 2017, the Ministry of Environment and Forestry opened a discourse to finally allow foreign shipments of these materials. This policy will make it difficult for local producers to obtain raw materials for production, according to trade organizations. HIMKI emphasized that such policy is only beneficial to the importer countries.

Another challenge faced by the industry is difficulty getting investors due to the numerous licenses required to operate in Indonesia. Furniture and home decor investors require 110 licenses in order to open shop in the country, resulting in low investment. Currently, there are allegedly 40,000 types of licenses in national and local levels.

Industry composition

Based on the Ministry of Industry’s data, there are approximately 140,000 business units engaged in the furniture and home decor industry, with a total of 436,000 employees in 2015 (latest available). Meanwhile, for the handicraft industry, Indonesia has up to 1.3 million manpower absorbed by about 696,000 companies. Meanwhile, according to HIMKI, there are 3,500 registered handicraft suppliers that are authorized exporters spread across the industrial bases in Java, Bali, Nusa Tenggara, Sumatra, Kalimantan and Sulawesi. These companies have a total export value of $2.6 billion, consisting $1.6 billion for furniture and $800 million for home decor.

There are currently no available official industry data differentiating large, medium and small enterprises in terms of manpower, factory size and export value.

Supplier locations map

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

Indonesia home decor Industry Overview Locations Map

Indonesia Sourcing: Home decor 2018 Product features

Indonesia Sourcing: crafts Suppliers and Products

Indonesia Sourcing: Home decor 2018

• Home accessories • Vases & pottery
• Home textiles • Lamps

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

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

Materials & designsManufacturing & QCPricing
  • Indonesia home decor suppliers use several materials in their products such as wood, fabrics, plants and metal.

  • Models feature a mix of traditional and contemporary designs.

  • Design teams are normally composed of up to five employees.

  • Home decor items are made using hand tools and machines.

  • A company has at least four people in its QC team.

  • Lead time is four to six weeks.
    • The materials used and the complexity of the design determine prices.

    • Home decor items with minimal designs are priced less than $10.

    • Sets or bigger home decor items usually cost more than $40.

    Materials & designs

    Indonesia home decor suppliers use several materials in their products. Wood such as teak, pine, and mahogany are procured from West Java, Central Java, and East Java provinces. They are mostly utilized on tableware, kitchenware, frames, shelves, and cabinets. Meanwhile, other plant-based materials such as bamboo are from East Java, West Java, and Bali provinces.

    Fabrics such as cotton, polyester and nylon are purchased from Central Java (Semarang, Jepara, Rembang), East Java (Madiun, Madura), and Nusa Tenggara provinces. They are mainly applied on cushion and wall hangings.

    Steel, brass and aluminum utilized on sculptures and clocks are procured from Bangka and Belitung provinces. Glass used on mirrors, clocks and frames are purchased from East and Central Java.

    Design teams are normally composed of up to five employees. Lead time is two to four weeks. About five to 10 new models are made every month.

    Manufacturing & QC

    Production steps for home decor include gluing, mixing, shaping, treating, coloring, packaging, polishing, and packaging. Cutting of materials, shaping, crushing, grinding, firing, glazing are done by machines. Lead time is four to six weeks.

    Since most designs are simple, QC is often done by making sure that the sample matches client specifications. QC teams are normally composed of up to four employees.

    Pricing

    The type of materials used heavily influence pricing, as well as the size and design complexity. Other factors that affect quotes are current trends, consumers’ demands, labor costs, logistics and transportation expenditure, and currency exchanges.

    Price guide

    Price guide: Home accessories
    Less than $10
    Candle holders, decorative plates and mugs, and photo frames; recycled wood or rattan; simple designs
    $10 to $50
    Candle holders, mirrors, and trays; teak, mahogany, resin or copper; in various shapes, colors, sizes, and designs
    More than $50
    Chandeliers and wall mirrors; mosaic glass, wood, resin, copper, capiz shell, marble or clay; handcarved; in various shapes, colors, sizes, and designs

    Click image to enlarge.

    Indonesia Home decor product features Typical features of a candle holder

    Price guide: Vases & pottery
    Less than $10
    Flower vases, and plate and mugs available in sets or individually; clay or ceramic; in various colors and sizes
    $10 to $40
    Vases in sets or individually; clay, ceramic, stone, or glass; in various colors and sizes
    More than $40
    Vases in sets or individually; clay, ceramic, stone, or glass; in various colors and sizes

    Indonesia sourcing crafts product features Typical features of a vase

    Price guide: Home textiles
    Less than $10
    Bedsheets and pillowcases; canvas or cotton; in plain designs and various colors
    $10 to $20
    Bedsheets and pillowcases; canvas or cotton; handsewn and printed design
    More than $20
    Bedsheets and pillowcases; cotton; handsewn and printed designs; in various colors

    Indonesia Home decor

    Price guide: Lamps
    Less than $10
    Clay or recycled wood; natural finish
    $10 to $40
    Mahogany or teak; in various designs and colors
    More than $40
    Mahogany, teak, ceramic, or metal; handcarved; in various designs

    Indonesia home decor

    Indonesia Sourcing: Home decor 2018 Supplier survey

    Indonesia Sourcing: Crafts 2018

    Indonesia Sourcing: Home decor 2018

    • Home accessories • Vases & pottery
    • Home textiles • Lamps

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

    Export pricesExport sales & marketsProduct trendsChallenges
    • Home decor exports are expected to stay flat in the next few months.

    • Quotes of Indonesia home decor are expected to remain the same due to the strengthening of the dollar against the Indonesia rupiah.
    • Suppliers raising quotes will be capping increases at 5 percent.



    • Majority of home decor suppliers are optimistic export sales will increase.

    • The Asia-Pacific region will be the industry’s key market in upcoming months.

    • Several suppliers plan to boost exports to the EU and the Middle East.

    • Functional home decor pieces will be popular in coming months.

    • Upcoming models will showcase bright and tropical hues.

    • Suppliers will continue to feature traditional and modern elements in their products.

    • Finding new workers is the primary difficulty of most suppliers.

    • Surveyed companies are also concerned about rising material costs.

    • Labor concerns are also major challenges.

    Export prices

    Quotes of Indonesia home decor are expected to stay flat over the next six months due to the strengthening of the dollar against the Indonesia rupiah. Suppliers also did not find any reason to increase prices as demand is steady. However, for the 31 percent of respondents who indicated that they will adjust quotes, four-fifths said that they will only do so minimally, at 5 percent.

    Indonesia Crafts Survey Export Prices

    Export sales & markets

    All of the surveyed companies have a positive outlook on export sales for the next 12 months, with one-half anticipating overseas shipments to surge up to 10 percent. Queried companies indicated that they increase their export targets annually by 10 to 20 percent, on average.

    Three-fifths of respondents said that they plan to target the Asia-Pacific region over the coming months because of its proximity. Some suppliers also have regular customers from the region, particularly Malaysia and Singapore. Meanwhile, some queried companies cited the EU and the Middle East as their target markets over the year ahead.

    Among surveyed companies, 31 percent said they will be focusing on functional designs such as lamps in intricate shapes, while others indicated that they will experiment with new colors and finishes such as bright, tropical hues, and combining ethnic and modern elements. An example of the latter are trendy statues painted with traditional batik motifs.

    Indonesia crafts Supplier Survey Export Forecast

    Traditional and modern styles will also be highlighted over the coming months, particularly minimalist designs as these are quite popular among foreign buyers.

    Challenges

    Nearly 40 percent of respondents cited finding new markets as their primary difficulty over the year ahead. Some suppliers said that they want to explore the EU, as orders from traditional markets such as North America are stagnating.

    Another challenge over the short term is rising raw material costs. Teak and mahogany, in particular, are becoming more expensive recently. There were issues which led to a national slowdown of logging production during the first quarter of 2018 due to inactive forest concessions, with an estimated loss of 4.8 million, and failure to obtain wood certification.

    Finally, labor-related concerns are also adding pressure, with regional minimum salary increasing. Varying across provinces, the average wage increase is 8.7 percent.

    Indonesia crafts Supplier Survey Key Findings

    Indonesia Sourcing: Home decor 2018 PDF download

    Indonesia Sourcing: Crafts 2018

    Indonesia Sourcing: Home decor 2018

    • Home accessories • Vases & pottery
    • Home textiles • Lamps

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    • Indonesia home decor suppliers

    Industry overview

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    • Highlights
    • Competitive advantages
    • Challenges
    • Industry composition
    • Indonesia home decor suppliers

    Chart


    • Exports of handicrafts
    • Supplier locations map

    Product features

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

    Supplier survey

    Sections


    • Highlights
    • Export prices
    • Export markets & sales
    • Product trends
    • Challenges
    • Indonesia home decor suppliers

    Chart


    • Export prices
    • Export forecasts
    • Key findings

    Indonesia Sourcing: Home decor 2018 Supplier list

    Indonesia home decor suppliers

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

    Suppliers featured on Supplier status
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