Indonesia Sourcing: Handicrafts 2018

 

Indonesia Sourcing: Handicrafts 2018 is a comprehensive guide for buyers interested in wooden crafts, metal crafts, fabric crafts and other handicrafts from Indonesia. In this report, buyers can find:

Verified exporters – 20 featured suppliers offering various handicrafts

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: Handicrafts 2018 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Indonesia exported about $153.3 million worth of ornaments made of wood, metal, ceramic and plant-based fiber.

  • Being able to source various materials domestically is an advantage of Indonesia’s handicraft industry.

  • Most handicrafts makers are businesses that generally have fewer than 50 employees.
  • Mahogany, pine and teak are among the common options for wooden crafts.

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

  • Handicrafts are made using hand tools and simple machines.
  • Most Indonesia handicraft suppliers intend to keep prices the same in the next six months.

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

  • Most supplier are optimistic export sales will increase in the next 12 months.

Indonesia Sourcing: Handicrafts 2018 Suppliers & products

Indonesia Sourcing: Handicrafts 2018

Indonesia Sourcing: Handicrafts 2018

• Gift items • Home decor • Other handicrafts

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.

Gift items   
Indonesia-handicraftsIndonesia-handicraftsIndonesia-handicraftsIndonesia-handicrafts
Home decor   
Indonesia-craftsIndonesia-craftsIndonesia-craftsIndonesia-crafts
Indonesia-craftsIndonesia-craftsIndonesia-craftsIndonesia-crafts
Other handicrafts   
Indonesia-handicraftsIndonesia-handicraftsIndonesia-handicraftsIndonesia-handicrafts

Indonesia Sourcing: Handicrafts 2018 Industry overview

Indonesia Sourcing: Crafts Industry Overview

Indonesia Sourcing: Handicrafts 2018

• Gift items • Home decor • Other handicrafts

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

Indonesia's handicraft exportsCompetitive advantagesChallengesIndustry composition
  • The country exported about $153.3 million worth of ornaments made of wood, metal, ceramic and plant-based fiber.

  • Wooden products accounted for 44 percent of the export value.

  • Basketwork, wickerwork and similar articles contributed 40 percent.
  • The country's natural resources include areas where a range of timber and non-timber forest products can be obtained.

  • Indonesia also has mines that produce silver, gold, copper, tin, nickel and other minerals.

  • The country has a large labor force.

  • Finding new export markets is a challenge for many companies due to limited knowledge about export regulations and procedures.

  • Complying with stringent rules set by importing countries can be costly.

  • Rising costs and competition result in slim margins.

  • Indonesia has more than 100 handicraft suppliers in the formal sector.

  • Most handicrafts makers are small businesses, which generally have fewer than 50 employees.

  • Small companies are capable of producing no more than 10,000 pieces per month.

Indonesia’s handicrafts industry exports a wide range of items. Among the major products of the sector are ornamental articles made of wood, metal, ceramic and natural fiber, which are covered in this report.

Export statistics for ornaments under HS codes 4420, 4602, 6913, 8306, 9701 and 9703 indicate that overseas sales of handicrafts are on a downtrend. In 2017, shipments of these products amounted to about $153.3 million, according to data from DESA/UNSD, United Nations Comtrade database. The value represents a dip of 6 percent from 2016.

Wooden ornaments shipped under HS code 4420 and basketwork, wickerwork and similar articles under HS code 4602 accounted for the majority of the export value in 2017.

Exports of wooden cases, statuettes and other ornaments amounted to $66.9 million, with shipments to the US accounting for 27 percent. The other major markets were Japan, the Netherlands, the UK and Spain.

Shipments of basketwork, wickerwork and similar articles reached $61.7 million. Products sent to the US accounted for 22 percent of the export value, while those exported to the Netherlands contributed 19 percent. Germany, the UK and Japan were the other top destinations.

Silver jewelry is another key export of the handicrafts industry. For more information about the sector, click here.

Indonesia Crafts Industry Overview Supplier Exports

Competitive advantages

Being able to source various materials domestically is an advantage of Indonesia’s handicraft industry. The country’s natural resources include areas where a range of timber and non-timber forest products can be obtained.

Teak and mahogany are the types of timber commonly used in wooden ornaments. Indonesia has 91 million hectares of forested land, which includes primary or otherwise naturally regenerated forests and planted forests, according to the Food and Agriculture Organization of the United Nations (FAO).

Rattan and other plant-based fibers are also widely available in the country.

In terms of resources for the metal handicraft sector, Indonesia is one of the major producers of silver, ranking 16th in 2017, according to the World Silver Survey 2018 report produced for The Silver Institute by the GFMS Team at Thomson Reuters.

Indonesia also has mines that produce gold, copper, tin, nickel and other minerals. Gemstones such as diamond, citrine, opal, amethyst and jasper are domestically available as well.

The country’s large pool of workers benefits the handicrafts industry as well. In 2017, the country had over 127.1 million people aged 15 years or older, according to figures from the World Bank Open Data. This population includes artisans of different skills such as wood carvers and batik artists.

Skilled workers are critical to the industry as most production processes are done hand. Suppliers provide in-house training to ensure workers can meet client requirements.

The government has several programs to boost the competitiveness of the industry. The Ministry of Trade helps encourage innovation and promotion of Indonesia-made handicrafts through competitions and trade missions and exhibitions. Annual trade exhibitions showcasing the country’s handicrafts include the Trade Expo Indonesia, the Interior and Craft Exhibition and the Jakarta International Handicraft Trade Fair (INACRAFT).

Through the Directorate Export Training and Education, the government provides companies training to improve their design and export capability. The Creative Economy Agency was formed to foster creativity in different subsectors, including handicrafts.

The President and the Ministry of Finance are also formulating policies to let the handicraft SMEs develop and grow by offering tax incentives for exporting goods.

To assure buyers that Indonesia products use legally harvested wood, the government established Sistem Verifikasi Legalitas Kayu, the national timber legality assurance system. In 2016, Indonesia became the first to issue Forest Law Enforcement, Governance and Trade (FLEGT) licenses to facilitate exportation to the EU.

Challenges

Indonesia handicraft producers are finding it a challenge to enter new markets, having limited knowledge about export regulations and procedures. Complying with stringent rules set by importing countries, which often require various tests and certifications, can be costly, especially for SMEs.

Having employees with limited English proficiency is also an issue for several companies, as this makes it difficult to communicate with potential buyers and use online marketing sites. Handicraft designers and producers also face the challenge of keeping their selections up to date with international market trends.

Rising costs, together with the intense competition, are cutting further into already slim margins and limiting the amount that companies can invest in research and product development. Increases in various expenses are also putting price competitiveness at risk.

Labor costs, for one, continue to climb. Provincial minimum wages for 2018 are over 8 percent higher than 2017 rates. Raw material costs, meanwhile, fluctuate depending on the availability of the input.

Handicraft manufacturers need to optimize the utilization of high-quality materials, supported by innovations of design.

President Joko Widodo has called for the modernization of the industry – particularly raw materials, processing, manufacturing, packaging and marketing, Antara News reported Sept. 27, 2017. He also noted the use of social media to promote products.

Industry composition

The membership of the Himpunan Industri Mebel dan Kerajinan Indonesia (HIMKI) or Indonesian Furniture and Craft Industry Association indicates there are more than 100 handicraft suppliers in Indonesia in the formal sector.

Most handicrafts makers in Indonesia are small businesses, which generally have fewer than 50 employees and factories that are less than 1,000sqm. These suppliers are capable of producing no more than 10,000 pieces per month, and their annual revenue does not exceed $35,660 (500 million Indonesian rupiah).

Midsize makers, which have 50 to 100 employees, have factories up to 5,000sqm in size. They can roll out 10,000 to 30,000 pieces per month, and their yearly revenue can reach $35,660 to $178,304 (500 million to 2.5 billion Indonesian rupiah).

Suppliers with larger workforces and factories can produce more than 30,000 pieces each month. At these companies, annual revenue can exceed $178,304 (2.5 billion Indonesian rupiah).

Supplier locations map

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

Indonesia handicrafts Industry Overview Locations Map

Indonesia Sourcing: Handicrafts 2018 Product features

Indonesia Sourcing: crafts Suppliers and Products

Indonesia Sourcing: Handicrafts 2018

• Gift items • Home decor • Other handicrafts

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

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

Materials & designsManufacturing & QCPricing
  • Mahogany, pine and teak are among the common options for wooden crafts.

  • Basketware is typically fashioned from rattan, bamboo and water hyacinth.

  • Raw materials are typically sourced from the country's various islands.

  • Almost all production processes are done in-house.

  • Handicrafts are made using hand tools and simple machines.

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

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

  • mall gift items such as pencil holders made of rattan or pandan are available for less than $1.

  • Animal figurines and miniatures priced below $10 include designs made of wood, brass and aluminum.

Materials & designs

Handicrafts from Indonesia cover products made of wood, fabric, plant-based fibers, shells and other domestically available materials.

For wooden lamps, statues and other types of home decor, among the common raw material options are mahogany, pine and teak. Companies often source mahogany from Java, while teak is typically from the Java and Kalimantan. Makers use timber that is certified compliant with Sistem Verifikasi Legalitas Kayu (SVLK), Indonesia’s national timber legality assurance system.

For basketware and other kinds of wickerwork, rattan, water hyacinth and bamboo are among the raw materials typically used. Makers usually source rattan from Kalimantan province and the islands of Sulawesi and Sumatra. Water hyacinth is procured from Java and the country’s other major islands, while bamboo is typically from the islands of Bali and Java.

For crocheted fashion accessories, cotton and nylon are the main options. The former is also the material of choice for batik fabrics. Cotton is sourced from Java, while nylon is obtained from Java and Yogyakarta.

Cowhide, buffalo hide, sheepskin and other types of leather made into bags, belts and other fashion complements are sourced mainly from the island of Java.

Among metal handicrafts, silver jewelry is a key category. Raw silver or sterling silver is usually procured from ANTAM, a state-invested metals and mining company, and other local sources. Additional information on Indonesia’s silver jewelry can be found here.

Various tabletop decorations are also available in aluminum and other kinds of metal. Aluminum is typically sourced from the island of Sumatra, while copper is procured from from the province of West Papua, which is one of the largest sources of copper in the world.

As demand for environment-friendly products continue to grow, many enterprises are upcycling materials such as old newspapers and magazines, turning these into bags, clutches and other fashion accessories.

Designs typically feature religious and mythical figures, and objects in nature. Batik patterns also remain a popular motif.

To reach a wider market, suppliers are applying traditional skills to create products relevant to the modern lifestyle. Tattwa Nusantara, for example, is offering wooden mobile phone cases that feature carvings of Balinese gods.

Manufacturing & QC

Almost all production processes are done in-house.

Wooden statues are carved out of a solid block of wood using a chisel and a hammer, and then a hook or filing knife is employed to create other details. The piece is polished by sandpaper before a finish is applied.

Baskets and other types of wickerwork are created using simple tools. The implements used include knives for cutting the raw material from the base; splitters for cutting the material into strips; and hammers or mallets to ensure that the final product is compact.

For batik fabrics, the traditional production method involves covering the cloth with wax using a tool called canting to protect areas that will not be dyed. The wax is removed after the dye bath for the first color to reveal the patterns. Wax is reapplied on the areas that need to remain in the original or the first hue before being immersed in another color. Another method of producing batik patterns uses blocks to apply the wax.

In silver jewelry, raw material preparation and casting are the stages that typically require the use of machines. To assemble the various parts and create the patterns, hand tools such as tweezers, hammers and files are typically employed.

Indonesia handicraft makers usually have at least three people in a QC team. These employees typically check products against customer requirements on quality, size, style and color.

Pricing

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

Small gift items such as pencil holders made of rattan or pandan are available for less than $1. Designs between $1 and $3 are made of teak and come with more intricate carvings. Higher up the price range, the selection includes teak holders with intricate carvings.

For statues, animal figurines and miniatures priced below $10 include designs made of wood, brass and aluminum. Products in the range $10 to $20 have more intricate designs, which may come in wood or aluminum. Complex wooden and bronze sculptures are available higher up the price range.

In crocheted bags, models below $10 are mostly made of nylon and feature one to two colors. Designs priced between $10 and $15 feature more designs. Leather straps and accents push up quotes.

Price guide

Price guide: Pencil holders
Less than $1
Paper, rattan or pandan; simple designs; minimal details
$1 to $3
Recycled paper; ethnic designs; minimal details

Click image to enlarge.

Indonesia crafts product features Typical features of a pen holder

Price guide: Figurines & miniatures
Less than $3
Cat figurine; wood; handpainted; simple design; 7x4x14 to 7x4.5x16cm
$3 to $10
Balinese dancer; wood; handpainted; more complex design and/or carvings; 12x2x 21cm

Miniature bicycle; brass and aluminum; 29x8x20cm; 1.2kg
$10 to $15
Miniature cart or horse wagon; brass and aluminum; intricate design; 30x10x16 or 36x13x18cm; 2 to 3kg

Indonesia sourcing crafts product features Typical features of a statuette

Price guide: Handknitted/crocheted bags
Less than $10
Handbags; nylon; satin lining; one or two colors
$10 to $15
Shoulder bag or backpack; nylon; satin lining; PVC leather handles/straps; multiple colors
More than $15
Shoulder bag, tote or backpack; nylon; genuine leather or canvas handles/straps; satin or canvas lining; multiple colors; with tassels

Indonesia crafts

Indonesia Sourcing: Handicrafts 2018 Supplier survey

Indonesia Sourcing: Crafts 2018

Indonesia Sourcing: Handicrafts 2018

• Gift items • Home decor • Other handicrafts

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

Export pricesExport sales & marketsProduct trendsChallenges
  • Most Indonesia handicraft suppliers intend to keep prices the same in the next six months.

  • Suppliers with plans to raise quotes will be capping increases at 5 percent.

  • The government’s projected inflation and higher wages are the main reason for projected price increases.


  • Of interviewed suppliers, 55 percent are optimistic export sales will increase.

  • Most suppliers see the Asia-Pacific region as the industry’s key market.

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

  • Companies are expanding their product ranges.

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

  • Suppliers will continue to feature ethnic elements in their products.

  • Suppliers are having difficulty finding new workers to continue the tradition of crafts making.

  • The continuous increase in minimum wages is another labor-related concern.

  • Entering new markets is difficult due to competition and the costs involved.

Export prices

Quotes of handicrafts from Indonesia are expected to remain relatively steady in coming months. Of the 20 suppliers that participated in the survey, 65 percent will be maintaining current prices.

The remaining companies intend to raise quotes, but will be keeping adjustments within 5 percent. The increases are being implemented mainly to cover projected inflation and higher labor-related expenses.

The country’s central bank forecasts 2018 inflation to range from 2.5 to 4.5 percent. With regard to labor costs, the Ministry of Manpower has set a 2018 Provincial Minimum Wage increase of 8.71 percent.

Indonesia Crafts Survey Export Prices

Export sales & markets

Indonesia handicraft makers generally have a positive outlook on export sales for the next 12 months. Among those surveyed, 45 percent expect overseas revenue to increase by up to 10 percent, while 10 percent anticipate higher growth. New releases are anticipated to attract new orders and/or buyers.

For 60 percent of the respondents, the Asia-Pacific region will be the key destination because the proximity of the markets makes exporting faster. The remaining respondents are interested in strengthening their presence in the EU, North America and the Middle East.

For many suppliers, product development revolves around making eco-friendly designs. Of the interviewed companies, 20 percent will be offering more products in jute, water hyacinth, pandan leaves and other materials that are considered sustainable. Fifteen-percent, meanwhile, will be releasing designs combining two or more of these environment-friendly inputs.

Indonesia crafts Supplier Survey Export Forecast

Thirty percent of the surveyed companies will be expanding their product range. Suppliers focusing on handcrafted gifts and premiums, for instance, will venture into bags, pouches and other fashion accessories.

Twenty percent will concentrate on releasing contemporary bags, dresses and other handicrafts featuring batik and other traditional patterns. Ten percent of the survey respondents will be expanding options in terms of colors.

The rest will continue to focus on designs that are traditionally colorful and elaborate.

Challenges

For the majority of suppliers, factors affecting the workforce are always a concern.

The government requires employers to regularize temporary workers after two years. Many small and midsize suppliers, however, employ only part-time workers due to financial constraints as well as the fluctuation of orders. The continuous increase in minimum wages is another labor-related concern.

While there is a large pool of handicraft workers in the country, suppliers are having difficulty finding new workers to continue the tradition of crafts making. Young workers tend to stay employed only for short periods.

Indonesia crafts Supplier Survey Key Findings

Many Indonesia handicraft producers are also finding it a challenge to penetrate new markets. Having limited knowledge about regulation and export procedure, they attempt entering into foreign markets through a broker.

Suppliers also find it difficult to gain a foothold on new markets due to price competition, especially with China counterparts. To stay competitive, they offer low MOQs to attract more buyers.

Other companies, meanwhile, are intimidated by the stringent rules set by importing countries as these involve passing testing and acquiring certification, which can be costly.

Indonesia Sourcing: Handicrafts 2018 PDF download

Indonesia Sourcing: Crafts 2018

Indonesia Sourcing: Handicrafts 2018

• Gift items • Home decor • Other handicrafts

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Supplier & products

Sections


  • Products
  • Indonesia handicraft suppliers

Industry overview

Sections


  • Highlights
  • Competitive advantages
  • Challenges
  • Industry composition
  • Indonesia handicraft suppliers

Chart


  • Exports of statuettes & other ornaments
  • Supplier locations map

Product features

Sections


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

Supplier survey

Sections


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

Chart


  • Export prices
  • Export forecasts
  • Key findings

Indonesia Sourcing: Handicrafts 2018 Supplier list

Indonesia handicraft suppliers

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

Suppliers featured on
Supplier status
SouvenirsGift itemsPromotional itemsHome decor
Bintoro Craft Active    
Cinderamata Jogja Active   
CV Kembang Square Active    
CV Spoleno Artspace Active  
Dluwang Art Active
Gaya Hidup Indonesia Active   
Gion's Collection Active     
Innovatif Art Active    
Kamar Kayu Active   
Lily Lamp Art Active    
Lowpolypaper Active   
MK Aluminium Active   
Ragil Jaya Active   
Rumpun Bambu Nusantara Active    
Sanggar Peni Active
Sriti Production Active  
Surya Citra Mozaik Active  
Tattwa Nusantara Active    
Wida's Collection Active    
Yakkum Craft Active