Indonesia Sourcing: Furniture 2018

 

In Indonesia Sourcing: Furniture 2018, buyers can find:

Verified exporters – 15 featured suppliers offering various furniture

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: Furniture 2018 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Indonesia exported about $1.7 billion worth of furniture in 2017.

  • The US was the top market.

  • Indonesia also has a timber legality assurance system to ensure that the material used was obtained legally.
  • Teak, mahogany and rattan are among the common raw material choices.

  • Design options include simple, contemporary structures and elaborate antique-style pieces.

  • Prices are based mainly on the materials used, additional features and design complexity.
  • Most Indonesia furniture suppliers intend to retain prices in the next six months.

  • Furniture made of eco-friendly materials will remain popular.

  • The Asia-Pacific region is the top target market of most surveyed suppliers.

Indonesia Sourcing: Furniture 2018 Suppliers & products

Indonesia Sourcing: Furniture 2018

Indonesia Sourcing: Furniture 2018

• Living room furniture • Dining room furniture • Bedroom 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.

Dining room   
Indonesia-dining-room-furnitureIndonesia-dining-room-furnitureIndonesia-dining-room-furnitureIndonesia-dining-room-furniture
Living room   
Indonesia-living-room-furniture
Indonesia-living-room-furniture
Bedroom   
Indonesia-bedroom-furnitureIndonesia-bedroom-furnitureIndonesia-bedroom-furnitureIndonesia-bedroom-furniture
Outdoor   
Indonesia-outdoor-furnitureIndonesia-outdoor-furnitureIndonesia-outdoor-furnitureIndonesia-outdoor-furniture
Indonesia-outdoor-furnitureIndonesia-outdoor-furnitureIndonesia-outdoor-furnitureIndonesia-outdoor-furniture

Indonesia Sourcing: Furniture 2018 Industry overview

Indonesia Sourcing: Crafts Industry Overview

Indonesia Sourcing: Furniture 2018

• Living room furniture • Dining room furniture • Bedroom furniture • Outdoor furniture

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

Indonesia's furniture exportsCompetitive advantagesChallengesIndustry composition
  • The country exported about $1.7 billion worth of furniture.

  • Wooden furniture accounted for 75 percent of the export value.

  • The US was the top market in 2017.
  • Suppliers can source most raw materials, including wood and rattan, locally.

  • Indonesia has a timber legality assurance system to ensure that the material used was obtained legally.

  • The country has a tradition of furniture making and wood carving.

  • Offering competitive prices is a challenge for many companies.

  • Rising material costs result in slim margins.

  • Complying with requirements can be costly for SMEs.

  • Indonesia had about 140,000 business units in the furniture industry.

  • Small and midsize furniture businesses generally have between 20 to 100 workers.

  • Large companies are capable of producing 20 containers monthly.

Exports

Indonesia’s exports of furniture under HS code 94 exceeded $1.7 billion in 2017, according to statistics from the DESA/UNSD, United Nations Comtrade database. This represents a year-over-year increase of nearly 2 percent.

The US was the top market, accounting for 40 percent of the export value. Japan, the Netherlands, Germany and the UK were the other top importers, together accounting for about 23 percent of the sector’s overseas sales.

Product-wise, shipments of wooden furniture and seats with wooden frames generated nearly $1.3 billion, or 75 percent of the export value. These include wooden furniture and seats with wooden frames.

Competitive advantages

Among the factors that make Indonesia one of the major furniture exporters is the variety of materials available in the country. Teak, mahogany and rattan are the primary materials for furniture.

Indonesia accounted for 4 percent of total global production of industrial roundwood in 2016, based on Food and Agricultural Organization (FAO) statistics. The government manages about 91 million hectares of forest land, 56 million hectares of which are production forests, according to the Ministry of Forestry.

The country accounts for about 80 percent of the world’s supply of rattan, which is among the main materials in furniture. These are sourced from the provinces of Kalimantan, Nusa Tenggara, Papua, Maluku and the islands of Sumatra, Sulawesi and Java.

Indonesia furniture Industry Overview Supplier Exports

The government also has several initiatives meant to support the sector. Among these is the existing ban on the export of raw rattan to ensure adequate supply for local industries using the material.

Another key initiative affecting the furniture sector is the country’s 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. Indonesia is also among the countries that can issue Forest Law Enforcement, Governance and Trade (FLEGT) licenses, which can facilitate exportation of furniture and other wooden products to the EU.

In terms of marketing, the government supports trade shows such as Trade Expo Indonesia and Indonesia International Furniture Expo (IFEX), where furniture suppliers can promote their products. The latest IFEX in March 2018 had more than 500 exhibiting companies. The October 2017 Trade Expo Indonesia had over 1,000 exhibitors and attracted more than 17,000 visitors.

Additionally, the Ministry of Industry launched the IKM e-Smart program to encourage SMEs to join an online marketplace where they can promote products such as furniture, jewelry and other fashion accessories, food and beverage products. About 1,625 furniture makers have joined the program, according to an article posted on Global Business Guide Indonesia.

The country also has a long tradition of furniture making and wood carving, and is home to a number of weavers, carvers and other craftsmen. Jepara in Central Java province, for instance, is one of the oldest woodworking hubs in the country, with about 30 percent of the province getting its income from making furniture, Forest News reported March 6, 2018.

Challenges

Offering prices competitive with those of suppliers in China, Malaysia, Vietnam and other neighboring production hubs is one of main issues of Indonesia’s furniture industry, especially amid rising production costs.

Rates of rattan sticks, for one, increased from 7,000 Indonesian rupiah ($0.52) to 12,000 Indonesian rupiah ($0.89) per kilo in 2017, Detik Finance reported Oct. 5, 2017. Labor costs are also on the rise; regional minimum wages are up more than 8 percent compared with 2017 rates.

Compliance with regulatory requirements poses financial challenges as well, especially for SMEs. Acquiring SVLK certification, for example, requires spending about $3,000 or more.

To cover the cost, SMEs band together or partner with larger companies in applying for an SVLK certificate to overcome this challenge. As part of efforts to boost exports, the government plans to subsidize timber legality verification for small and midsize furniture exports, Reuters reported July 10, 2018.

Several companies are trying to avoid competing on price by offering unique designs or enhancing customer service.

Industry composition

Indonesia had about 140,000 business units in the furniture industry as of 2015, according to a March 12, 2018, article on Industry.co.id, citing data from The Ministry of Industry. The sector consists mostly of small and midsize companies.

With about 20 workers, small manufacturers can produce up to 10 containers per month. Yearly sales do not exceed $75,000.

Annual sales of midsize companies can reach $100,000. These companies employ up to 100 people and produce at least 10 containers monthly.

Manufacturers with a larger workforce can produce more than 20 containers monthly. They can earn more than $750,000 yearly.

Supplier locations map

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

Indonesia furniture Industry Overview Locations Map

Indonesia Sourcing: Furniture 2018 Product features

Indonesia Sourcing: Furniture Suppliers and Products

Indonesia Sourcing: Furniture 2018

• Living room furniture • Dining room furniture • Bedroom 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
  • Teak, mahogany and rattan are among the common options for furniture.

  • Design options include simple, contemporary structures and elaborate antique-style pieces.

  • Many furniture companies have no more than five designers.

  • Carving and assembly are done by hand.

  • Furniture production can take from 30 to 90 days depending on the client’s specifications.

  • A company usually has up to five people in its QC team.

  • Prices are based mainly on the materials used, additional features and design complexity.

  • Basic bed frames, chaise lounge chairs and sofas are available for less than $100.

  • Dining and living room sets typically cost more than $200.

Materials & designs

Indonesia suppliers produce indoor and outdoor furniture in wood and nonwood forest products. Variants in plastic and metal are also offered.

Hardwood pieces are mainly in teak or mahogany. Teak is obtained from Java island and the provinces of South Sulawesi, South East Nusa Tenggara and East Nusa Tenggara. Mahogany is sourced mainly from Java and the Special Region of Yogyakarta.

Rattan is the popular option in terms of nonwood forest products (NWFP). The material is obtained from Kalimantan, Nusa Tenggara, Irian Jaya, and the islands of Sulawesi and Sumatra. Bamboo, another preferred NWFP, is found throughout the country, particularly Bali and Java.

Some suppliers use either aluminum or steel as a frame or base in outdoor furniture. Aluminum is procured from North Sumatra, while steel is obtained from Java and Jakarta. For other parts, the common choice is synthetic rattan, which is made from PE or PP.

Design options include simple, contemporary structures and elaborate antique-style pieces. In terms of finishing, many highlight the natural color of the material, but brighter colors and pastels such as blue, pink and green are also offered.

Amid environmental concerns and related legislation, upcoming releases will include products made of reclaimed teak and other types of wood. In terms of style, modern and contemporary pieces with space-saving features are anticipated to grow in number, especially among makers also targeting the growing middle-income population in Indonesia.

Many furniture companies have no more than five designers, who release five to 10 new models monthly. Besides marketing their own collections, makers in Indonesia accept original equipment manufacturer (OEM) and original design manufacturer (ODM) orders. For most suppliers, OEM orders based on client specifications or common designs account for the majority of business.

Manufacturing & QC

Wooden furniture production starts with timber processing, which is often done at a sawmill. This includes splitting and sorting the logs according to size and variety and then drying them outdoors and in a kiln to reduce moisture content to 15 percent or less.

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

The different pieces are assembled by hand after these are cut and/or carved. Finishing touches such as paint and varnish are applied.

To create rattan furniture, rattan stems are first cut, sorted and dried. Larger stems are used to create the frame or base of the furniture, and the rest are for the woven parts. Weaving of the material is typically done by hand.

Furniture production can take from 30 to 90 days after order confirmation, depending on the client’s specifications, the country where it is to be exported and other factors.

Quality checks conducted at every stage of production to ensure that raw materials meet client specifications and adhere to the timber legality requirements of Indonesia. Finished pieces are checked against client specifications. The QC process typically involves visual inspections and on-site tests to check durability, strength and other factors.

Companies usually have up to five workers focused on QC.

Pricing

Models are typically priced according to materials used, design complexity and additional features such as wheels and armrests.

Price guide

Price guide: Dining sets
Less than $200
Four chairs and a round table; rattan or teak; simple design
$200 to $300
Six chairs and a rectangular table; rattan or teak; traditional designs; with minimal carvings
More than $300
Eight chairs and a rectangular table; rattan, teak or mahogany; vintage style with intricate carvings or modern styles

Click image to enlarge.

Indonesia furniture product features Typical features of a dining set

Price guide: Sofas
Less than $100
Single-seater sofa; synthetic rattan or rattan frame; simple design; with or without cushion
$100 to $200
Two- or three-seater sofa; rattan, synthetic rattan or teak frame; antique style; with cushions; minimal decorative details
More than $200
Three-seater sofa or sofa set; rattan, teak, mahogany or metal frame; vintage style with intricate patterns or modern style; with cushions

Indonesia sourcing furniture product features Typical features of a dining set

Price guide: Beds
Less than $100
Single bed; synthetic rattan or wooden frame; no mattress; simple designs
$100 to $150
Queen bed; rattan, teak, mahogany or synthetic rattan frame; with minimal carvings
More than $150
Single, queen or king bed; rattan, teak or mahogany frame; antique style with intricate carvings

Indonesia furniture typical features of a bed

Price guide: Chaise lounge chairs
Less than $80
Rattan; 100x80x70cm; with or without armrests; basic designs
$80 to $120
Teak, rattan, PE rattan or aluminum; 163x100x58cm; with armrests and cushion; foldable; modern style
More than $120
Teak or rattan; 200x65x37cm; with armrests, cushion and wheels; foldable; modern or vintage style

Indonesia sourcing furniture product features Typical features of a chaise lounge

Indonesia Sourcing: Furniture 2018 Supplier survey

Indonesia Sourcing: Furniture 2018

Indonesia Sourcing: Furniture 2018

• Living room furniture • Dining room furniture • Bedroom furniture • Outdoor furniture

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

Export pricesExport sales & marketsProduct trendsChallenges
  • Most Indonesia furniture suppliers intend to retain prices in the next six months.

  • Suppliers with plans to raise quotes will be capping increases at 10 percent.

  • Investing in R&D and new machinery is one of the reasons for projected price increases.


  • Of the interviewed suppliers, 60 percent anticipate exports will stay flat in coming months.

  • Most indicated the Asia-Pacific region as their main target market.

  • Several suppliers also plan to boost exports to Europe.


  • Furniture made of eco-friendly materials will remain popular.

  • Mixed-media designs featuring wood or rattan will also be a trend.

  • Suppliers will incorporate extra storage and other features to enhance the functionality of their products.


  • Entering new markets is a challenge due to the costs involved.

  • Suppliers are having difficulty coping with rising raw material costs.

  • Rising labor costs is another concern.


Export prices

Among the suppliers surveyed for this report, the majority see prices remaining at current levels in the next six months in line with efforts to attract new buyers and retain existing clients.

The rest of the respondents intend to raise prices to cover higher labor and raw material costs, invest in R&D or purchase additional machinery and tools to enhance the production process. These companies see increases ranging from 6 to 10 percent.

Indonesia Furniture Survey Export Prices

Export sales & markets

Most suppliers are expecting sales from overseas markets to stay flat in the next 12 months. Of the surveyed companies, 40 percent are anticipating growth in export sales as a result of their participation in trade shows and online promotion.

Thirty-one percent of the suppliers that participated in the survey chose the Asia-Pacific region as their most important target market due to proximity. Shipping to these markets take less time and is less costly compared with exports to the US or the EU.

For 23 percent of respondents, EU is the main target market. These suppliers already have existing relationships with buyers from both areas and are receiving regular orders.

Twenty-three percent are looking at their sales increasing but without any specific target market in mind.

In terms of materials, using renewable resources are on trend amid rising demand for environment-friendly products. These include bamboo, water hyacinth, seagrass, abaca and banana leaf, which are easily found within the country. Combinations of wood or metal with rattan and other natural materials are also anticipated in upcoming releases.

Indonesia furniture Supplier Survey Export Forecast

Design-wise, models that incorporate extra storage and other multipurpose structures are expected to be released in the next few months. Suppliers are also expected to continue offering traditional furniture with elaborate carvings and other decorative elements, for which Indonesia is known, even as the selection of modern and contemporary styles expands.

Challenges

Of the suppliers that answered the survey question regarding challenges, 50 percent indicated that entering new markets as their main concern. Each country has stringent requirements, which can be costly and time-consuming for many SMEs to comply with.

Another issue is higher production expenses. Rising raw material costs are driving suppliers to increase quotes, a move that will put their products at a disadvantage compared with those of China, Malaysia and Vietnam.

Rising labor costs and the aging workforce of the industry are also a concern. To counter the effects of these on their businesses, some suppliers are outsourcing certain jobs or the entire production process to other companies. In these instances, the work is done on a project basis, which is less costly and easier to manage.

Indonesia Furniture Supplier Survey Key Findings

Indonesia Sourcing: Furniture 2018 PDF download

Indonesia Sourcing: Furniture 2018

Indonesia Sourcing: Furniture 2018

• Living room furniture • Dining room furniture • Bedroom furniture • Outdoor furniture

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Supplier & products

Sections


  • Products
  • Indonesia furniture suppliers

Industry overview

Sections


  • Highlights
  • Exports
  • Competitive advantages
  • Challenges
  • Industry composition
  • Indonesia furniture suppliers

Chart


  • Exports of furniture
  • Supplier locations map

Product features

Sections


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

Supplier survey

Sections


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

Chart


  • Export prices
  • Export forecasts
  • Key findings

Indonesia Sourcing: Furniture 2018 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 furniture Dining & kitchen furniture Living room furnitureOutdoor furniture
CV Farrel Active
CV Jalan Kayu Active    
CV Luxindo Alam Jaya Active
CV Mahkota Jaya Rattan Active   
CV Republic Furniture Jepara Active
CV Ribka Furniture Active
CV Unique Indonesia
Active
Harmony Dekorindo Rattan Active  
PT Kharisma Rotan Mandiri Active
PT President Furniture Active  
PT Primaja Indo Kreasi
Active
PT Rattan Land Active
PT Segoro Mas Solo Active
Rattan Cirebon Active
Sankara Karya Furniture Active