The Ministry of Industry aims to position Indonesia as a global furniture manufacturing hub by strengthening the sustainable wood downstream industry and enhancing national industrial competitiveness. The Minister of Industry stated that the furniture industry is a key model for wood downstreaming, being a labor-intensive sector that creates high added value and drives economic growth. The global furniture market exceeds USD 736.21 billion, and Indonesia plans to not only increase production capacity but also take a leading position in design and sustainability over the next five years.
In 2025, Indonesia's processing and manufacturing industry grew by 5.30%, higher than the national economic growth rate of 5.11%, the first time it has surpassed this figure in 14 years; the manufacturing sector contributed 19.07% to GDP, with manufacturing value added (MVA) reaching USD 265.07 billion, ranking 13th globally and 1st in ASEAN. However, Indonesia's furniture industry still faces challenges: exports fell by 3% to USD 1.85 billion in 2025, while imports rose by 6% to USD 820 million.
Meanwhile, it is affected by global geopolitics, logistics, and the EU's new deforestation regulation (EUDR). The Ministry of Industry pointed out that Indonesia has the SVLK legality and sustainability certification system, providing a strong competitive foundation. To boost productivity, a wood processing equipment restructuring program has been implemented, benefiting 35 companies with total subsidies of IDR 26.1 billion, resulting in a production efficiency increase of 10.7%, product quality improvement of 36.28%, and productivity growth of 32.65%.
The Ministry of Industry aims to position Indonesia as a global furniture manufacturing hub by strengthening the sustainable wood downstream industry and enhancing national industrial competitiveness. The Minister of Industry stated that the furniture industry is a key model for wood downstreaming, being a labor-intensive sector that creates high added value and drives economic growth. The global furniture market exceeds USD 736.21 billion, and Indonesia plans to not only increase production capacity but also take a leading position in design and sustainability over the next five years.
In 2025, Indonesia's processing and manufacturing industry grew by 5.30%, higher than the national economic growth rate of 5.11%, the first time it has surpassed this figure in 14 years; the manufacturing sector contributed 19.07% to GDP, with manufacturing value added (MVA) reaching USD 265.07 billion, ranking 13th globally and 1st in ASEAN. However, Indonesia's furniture industry still faces challenges: exports fell by 3% to USD 1.85 billion in 2025, while imports rose by 6% to USD 820 million.
Meanwhile, it is affected by global geopolitics, logistics, and the EU's new deforestation regulation (EUDR). The Ministry of Industry pointed out that Indonesia has the SVLK legality and sustainability certification system, providing a strong competitive foundation. To boost productivity, a wood processing equipment restructuring program has been implemented, benefiting 35 companies with total subsidies of IDR 26.1 billion, resulting in a production efficiency increase of 10.7%, product quality improvement of 36.28%, and productivity growth of 32.65%.