Indonesia's demand for furniture surges, with furniture exports up 36.24% in the first half of 2021

Due to the impact of the raging COVID-19, most cross-border e-commerce sellers around the world have suffered losses to varying degrees. Coupled with the large number of policies introduced by governments and platforms, this year can be said to be the most difficult year for cross-border e-commerce. However, there is still a counter-current that has risen to the challenge and achieved good results.

Under such difficult circumstances, Indonesia's furniture and handicraft exports have performed well, with exports growing by 35.41% in the first half of this year , and exports to the US market have expanded. Even in the first half of 2021 when the epidemic was under control, export demand continued to surge, and most of the exports came from the United States.

In a circular issued on Wednesday, Abdul Sobur, chairman of the presidium of the Indonesian Furniture and Handicraft Industry Association ( HIMKI), said the increase in US demand was due to the positive impact of fiscal stimulus policies, which increased the country's household income and supported sustainable spending on a large number of products.

In addition, Sobur pointed out that the current trade war between the United States and China and the lack of large furniture supplies in China have forced the United States to shift orders to countries and regions other than China, including Vietnam, Mexico, Canada, Malaysia, Taiwan and Indonesia.

Correspondingly, Indonesia's furniture imports also increased significantly. In the first half of 2021, furniture imports increased by 36.24%, and handicraft imports increased by 20.28%. The import value in the first half of 2021 was US$551.8 million. Although the amount is small, it is likely to continue to increase.

Sobur said that the largest importer of raw materials comes from China (76.9%), and the rest comes from Thailand, Japan, Malaysia, etc. Sobur expressed concern that although the export trade results are gratifying, it has also led to a continuous increase in the number of imported goods, which may have an impact and impact on local industries.

Due to rampant smuggling, raw materials for Indonesia's furniture and handicraft industries are scarce. Indonesia lacks logs, ironwood, sawn wood and other wood materials as raw materials for commodity exports. Although it imports a large amount of wood from China, it is still difficult to resist the production boom. In the future, Indonesia will definitely rely on furniture and handicrafts as its main commercial goods, and the demand for wood raw materials will continue to surge. This may be a good opportunity for Chinese sellers.

Indonesia

furniture

Handicrafts