Indonesian SME Furniture Producer Reaches European Market

RRI.CO.ID, Jakarta - A small and medium enterprise (SME) furniture manufacturer from Indonesia has successfully entered international markets after receiving structured coaching and facilitation from the government through the Ministry of Industry of the Republic of Indonesia.

Minister of Industry, Agus Gumiwang Kartasasmita, said the government continues to carry out mentoring and development programs so furniture SMEs across regions can compete in the domestic market and penetrate global markets.

“We also continue to collaborate with various stakeholders to support the development of an innovative domestic furniture industry that meets market needs and consumer preferences,” he said in a statement in Jakarta on Monday, February 16, 2026.

One concrete result is the export achievement of CV Kayu Manis, an SME furniture producer from Bantul Regency, Yogyakarta. CV Kayu Manis is a small and medium furniture enterprise that has operated since 2001, using teak wood as its primary raw material. The company produces wooden furniture specializing in bathroom and indoor furniture.

As the business expanded, it now operates a 10,000-square-meter production facility with an annual production capacity of up to 120 containers. In February 2026, the company exported six containers of furniture to Spain, Italy, France, and Réunion.

Director General of Small, Medium and Miscellaneous Industries, Reni Yanita, said Indonesia’s furniture industry has shown the ability to adapt to global changes.

“CV Kayu Manis is a successful example of an SME meeting global market challenges, and we hope it can inspire other SMEs striving to enter export markets,” she said.

Reni added that the furniture sector has strong export potential that must be optimized. Based on Trademap data (HS 9401–9403), Indonesia’s furniture exports reached USD 1.91 billion in 2024. Meanwhile, from January to November 2025, export value totaled USD 1.67 billion. The United States remains the main export destination, accounting for 54.6 percent of total national furniture exports.

However, global market dynamics particularly reciprocal tariff policies imposed by the United States government have affected export performance. Therefore, the government continues to promote adaptive strategies and diversification of export markets to strengthen global competitiveness.

“The government is taking strategic steps through trade diplomacy and negotiations, while encouraging expansion into non-traditional markets. Potential regions include Eastern Europe, the Middle East, Latin America, and Asian countries such as India and Japan,” Reni explained.