Globaltraded.com — The Indonesian Furniture and Handicraft Industry Association (Asmindo) remains confident in the face of regional and global challenges, forecasting growth in furniture exports for the year.
Dedy Rochimat, Chairman of Asmindo, emphasized the robust growth trajectory of the global furniture market, which reached a staggering $729 billion last year.
“Regionally, the Asian market hit $169 billion in 2023, while the ASEAN region accounted for $13.7 billion,” Dedy noted, as reported by the Indonesian media, Republika.
Despite this significant market potential, the national furniture industry’s export performance up to October 2023 has been less than satisfactory, amounting to only $1.76 billion.
“This figure marks a 35 percent decline compared to the same period in 2022, necessitating a thorough evaluation to seize the opportunities that lie ahead this year,” Dedy stated.
“It is paradoxical that Indonesia, with its abundant natural resources supporting the furniture and handicraft industry, has lagged behind competitor countries that dominate the global market,” he added.
Looking ahead, the global furniture market is projected to reach $766 billion by 2024, accompanied by growth in the Asian and ASEAN markets.
In response to these projections, Asmindo has developed a comprehensive roadmap for the national furniture and handicraft industry with two primary goals: to continuously enhance export potential and to increase domestic market penetration.
“Asmindo is committed to advancing the national furniture and handicraft industry through effective programs that can deliver substantial impacts,” Dedy explained.
He highlighted plans to diversify the export market beyond traditional strongholds in America and Europe, targeting emerging markets such as Saudi Arabia, Brazil, and others.
“The domestic market remains robust and full of potential. Despite the political climate, we remain focused on our goals. Politics will take its course; our optimism in the market is unwavering,” Dedy concluded.
Asmindo’s strategic roadmap underscores a proactive approach to leveraging Indonesia’s rich natural resources, fostering innovation, and expanding market reach. The association’s commitment to addressing current challenges and seizing future opportunities signals a resilient and forward-thinking vision for the Indonesian furniture industry.
With significant matching funds from local governments targeting sectors of strategic importance, including semiconductors, alternative energy, new materials, and AI, Asmindo is poised to strengthen its position both domestically and internationally.
The focus on developing effective programs and expanding into new markets reflects a strategic shift aimed at mitigating the impact of global headwinds while capitalizing on emerging opportunities. This proactive stance is crucial for maintaining growth momentum and ensuring long-term sustainability.
The emphasis on innovation, adaptability, and market diversification highlights the association’s recognition of the evolving landscape and the need to stay ahead of the curve. By addressing these challenges head-on and leveraging the country’s natural advantages, Asmindo is charting a course for a brighter future for Indonesia’s furniture and handicraft industry.
The comprehensive approach outlined by Asmindo, coupled with a clear vision and strategic initiatives, positions the industry to navigate the complexities of the global market effectively. The roadmap’s focus on enhancing export potential and increasing domestic market penetration is a testament to the association’s commitment to driving growth and fostering resilience in the face of adversity.
As the industry looks forward to 2024 and beyond, Asmindo’s proactive measures and strategic focus on innovation and market expansion are set to propel the Indonesian furniture and handicraft industry to new heights, reinforcing Indonesia status as a key player in the global furniture market.
