December 20, 2025 | 10:42 am
TEMPO.CO, Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) met with Finance Minister Purbaya Yudhi Sadewa at the Ministry of Finance office on Friday, December 19, 2025. The meeting discussed deregulation options and incentives that could be provided to the national furniture industry.
The Chair of Kadin, Anindya Novyan Bakrie, stated that furniture products have a significant market share in global trade. He mentioned that the global furniture market is worth about US$300 billion, while Indonesia's contribution is only about US$2.5 billion.
According to Anindya Bakrie, the growth of the furniture industry is actually quite healthy. "However, the challenge is that the trade surplus is decreasing due to the increasing imports to the domestic market," he said to the media after the meeting at the Ministry of Finance office.
One of the discussed incentive options is access to funding with more competitive interest rates. Additionally, discussions were also held regarding the industrialization based on domestic natural resources, such as rattan.
Anindya Bakrie mentioned that 85 percent of the world's rattan resources are in Indonesia. Meanwhile, nearly 60 percent of Indonesia's furniture exports still depend on the U.S. market. He also emphasized the importance of diversifying the market strategy, including Canada and the European Union.
On the same occasion, the Chair of the Indonesian Furniture and Handicraft Industry Association (HIMKI), Ahmad Sobur, hoped that the government would provide concrete support, especially in terms of financing. He revealed that currently, entrepreneurs can obtain an interest rate of around 6 percent through the Indonesian Export Financing Institution (LPEI).
However, according to Ahmad, the volume of financing is still limited. "But the volume is still limited, about Rp200 billion. We hope it can be increased to Rp16 trillion so that the furniture industry can be boosted to grow up to $6 billion in exports," he said.
In response to business players' requests, Finance Minister Purbaya Yudhi Sadewa stated that they would consider the LPEI financing scheme, including the low distribution. However, Purbaya mentioned that they would first check the internal conditions of LPEI, which had previously faced problems. It is known that LPEI was involved in a corruption case related to credit misuse. "So we will first check if the LPEI is in order. If it is, we will add incentive support to the furniture industry through LPEI," said Purbaya at the Presidential Palace, Jakarta, on Friday, December 19, 2025.
Hendrik Yaputra contributed to this article
Read: Indonesian Furniture Industry Seeks Government Backing to Compete Globally
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