Opening IFEX 2023 Event, Airlangga: There's No Reason The Indonesian Furniture Industry Loses To China

Coordinating Minister for the Economy Airlangga Hartarto. Photo: Theresia Agatha/VOI

JAKARTA - Indonesia wants the furniture industry to develop more widely. Moreover, Indonesia has qualified raw materials and labor.

Coordinating Minister for the Economy Airlangga Hartarto said the Indonesian furniture industry has big rivals such as China and Vietnam.

"HIMKI is a big rival, a country like China and Vietnam, this must be our benchmark (fertile), there is no reason we lost to China," he said at the Opening Ceremony and Press Conference of the Indonesia International Furniture Expo (IFEX) 2023 exhibition at JIExpo Kemayoran, Jakarta, Thursday, March 9.

Regarding the event, Airlangga revealed that the government has set a target for the export value of the furniture industry worth US $ 5 billion by the end of 2024. However, until now it has only reached US $ 3.5 billion.

To achieve this target, said Airlangga, there are two things that need to be done, namely related to the raw materials and financing of SVLK (Verification System and Kayu Legality).

"This SVLK is the responsibility of the government, the budget is in the Ministry of Environment and Forestry. So, this must be pushed again, but do not burden entrepreneurs. If the Ministry of Environment and Forestry cannot, I ask the Minister of Industry to facilitate it," he said.

Second, related to the expansion of the export market. Those who will facilitate export financing are the Indonesian Export Financing Agency (LPEI).

Coordinating Minister Airlangga also compared it with the export of Vietnam's furniture industry. According to him, Indonesia can make Vietnam a benchmark. This is because Vietnam, which does not have raw materials, can get export value from the furniture industry, reaching 18 billion US dollars.

"Vietnams that do not have raw materials can be USD 18 billion. So, in Asia it can be at least our benchmark, because in terms of aircraftmanship we are superior in terms of the availability of raw materials, we are ready for human resources. So, it's just a matter of processing it well," he said.

On the same occasion, President Director Dyandra Promosindo Daswar Marpaung said, at this year's IFEX event, it was targeted that there were 12,000 buyers from 112 countries, an increase from last year's 8,000 buyers and 80 countries.

Some buyers have registered, including India, the United States, Australia, France, Japan, and others. IFEX itself will be held at JIExpo Kemayoran, Jakarta, 9-12 March.

"The IFEX will be attended by more than 500 exhibition participants from various cities in Indonesia. IFEX also occupies all areas in JIExpo Kemayoran of 60,000 m2. This makes IFEX the largest furniture and handicraft exhibition in Indonesia," he concluded.