Based on Data from Badan Pusat Statistik (BPS), the national furniture industry grew by 2.22% in the second quarter of 2018, or 0.93 higher than in the same period of the previous year. The growth is supported by the increasing export of furniture products from Indonesia to several countries abroad. Based on data collected, furniture products have become one of the significant contributors to Indonesia exported commodities.
In the second quarter of 2018, according to Himpunan Industri Mebel dan Kerajinan Indonesia (HIMKI), Indonesia took participation in some international events. As a result, the export value of furniture products from Indonesia increased by 10.53% to USD 930 million, from USD 832 million. The increase is quite satisfying. It is because for several years in the past, it was hard for the national industry to reach double-digit growth.
One of the efforts to drive up the export of furniture products from Indonesia is by taking out the requirement of Timber Verification and Legality System (SVLK) for the downstream industry as currently applied. The SVLK is a system to ensure that the timber products or materials for producing the products are obtained or originated from the sources who have met legality aspects. Timbers are stated legal if they are proven to have met all the requirement in the aspect of origin, the cutting permit, the cutting procedure, and system transport, the processing or handover aspects. It takes many times, energy and costs for the industrial players to meet all these aspects.
Quarterly, PT. Visi Globalindo Data Utama predicts that for the fourth quarter of 2018, the national furniture industry will increase by 2.83% if compared to the negative growth suffered in the same period of the previous year. Meanwhile yearly, the furniture industry is predicted to experience a 0.71% decrease to 3.00%, if compared to last year. Although the sector is perspective, the investors seem less interested in putting their investment in the furniture industry, due to the quite complex procedure for the investors to meet the SVLK regulation. Vietnam, whose regulation is considered friendlier for investors, is more attractive for the investors.