Ministry Of Industry Projects Domestic Furniture Industry This Year Grows 5 Percent

JAKARTA - The Ministry of Industry (Kemenperin) projects that the domestic furniture industry can grow by 5 percent this year.

Throughout 2023, the export performance of this sector has reached US$1.8 billion.

"The domestic furniture industry is expected to continue to increase and successfully maximize the global furniture market potential whose value reaches US$629 billion (based on Expert Market Research data) and is projected to grow 5 percent in 2024," said Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika in a written statement quoted on Tuesday, February 20.

One of the efforts made by the Ministry of Industry is to continue the machine restructuring program and/or equipment for the wood and furniture processing industry.

"We have and are implementing a machine restructuring program and/or wood processing industry equipment, in the form of providing reimbursement for some purchases according to the criteria," he said.

Putu said, based on the company's report for the 2022 fiscal year (TA), this program has an impact on increasing company efficiency by 10-30 percent.

"In addition, product quality has also increased by 10-30 percent and company productivity has increased by 20-30 percent," he said.

Since 2022, Putu continued, 24 companies have participated in the engine and/or equipment restructuring program for the wood and furniture processing industry, consisting of nine program participating companies in the 2022 budget year and 15 companies in 2023.

Meanwhile, for 2024 itself, the budget allocated for the industrial machine/equipment restructuring program is IDR 7.5 billion with a target of 10 company participants.

Furthermore, Putu said, his party has also developed a strategy for market control and responded to the furniture industry trend.

This strategy focuses on five aspects, namely facilitation of the availability of raw materials, facilitation of the availability of skilled human resources, facilitation of market improvements and strengthening market reference research, facilitation of increased productivity, capacity and product quality and facilitation of a conducive business climate and increased investment.

"The Ministry of Industry is also implementing a furniture design concept development program, one of which is through a collaboration workshop between furniture designers and industry players," he added.