Raw Material

PROJECT

Woodcarving and furniture have a rich tradition and are part of the Indonesian culture. Based on raw materials used in exported products, wooden furniture is still the largest exported commodity. In 2018, revenue in the furniture segment amounts to USD 779 million, with an expected annual growth rate of 19.1% (not counting Covid adjustment) resulting in USD 1,568 million in 2022.
Indonesian furniture exports reached an estimated USD 2 billion, which is 1.5% of global exports. The Indonesian Timber Legality Assurance System (Sistem Verifikasi Legalitas Kayu, or INDO-TLAS) took effect in 2013 to ensure the global timber market fulfils the legality of its timber products. Interestingly IKEA from Sweden entered the Indonesian market in 2014, and is constantly expanding it’s production.

Indonesian furniture and handycrafts are produced from a variety of raw materials, not just wood based materials These diverse raw materials include bambu, rattan, synthetic rattan,, plastics, metals (such as steel, aluminum, brass, copper and wrought iron). There are also impressive production of products made from ceramic and resins. Annually, the Indonesian wood furniture industry requires 4.5 million m2 of timber. The main timber species for woodworking are teak, mahogany, mindi wood, coconut wood, and rosewood also known as sonokeling. Also foreign woods are imported for processing into veneers and furniture, such as oak, ash, walnut, and elm.