Keeping the Indonesian Furniture and Craft Industry Alive Through Consistency and Synergy

 Keeping the Indonesian Furniture and Craft Industry Alive Through Consistency and Synergy

Aryan Wargadalam, a member of the Expert Council for Industrial Regulation at the Indonesian Furniture and Craft Industry Association (HIMKI), is known for his strategic insight into the interconnectedness of cultural strength, natural resources, and the nation's economic potential. With decades of experience in forest-based industries, Aryan emphasized that the furniture and craft industry is a labor-intensive sector that absorbs a large workforce and requires high skills.

"From the beginning, our culture and nature have been very supportive of the growth of the furniture and craft industry," Aryan said. He emphasized that many Indonesian products in this sector are highly valuable and play a vital role in the national economy.

Recalling his time in government, Aryan vividly recalls how government support was key to the growth of the national furniture and craft industry. This support included skills training, machinery assistance, and support for participation in international exhibitions in Europe, America, and China, ensuring the industry's global competitiveness. One important initiative during that time was the development of timber terminals and training centers in various regions, which became the forerunners of vocational education institutions in the furniture industry.

For Aryan, industrial competitiveness is not just about price or efficiency, but also about consistency. "We must maintain product quality to meet international market demand," he said. He emphasized the importance of investment, not only in finance but also in human resources, as investing in workforce skills is considered as important as investing in machinery.

In his view, the future of the furniture and craft industry will shift along with global geopolitical changes. Countries in the South-South, Pacific, and Africa are considered to have great potential as new markets. "The changing direction of the global economy opens up huge opportunities for our products," he said optimistically.

Prior to his involvement in HIMKI, Aryan was well-known in the pulp and paper industry, having served as Chairman of the Indonesian Pulp and Paper Association (APKI) from 2016 to 2021. Under his leadership, APKI emphasized the importance of domestic supply chains, efficiency, and the implementation of green industry principles.

Now, as an Advisor to APKI and a member of the HIMKI Expert Council, Aryan serves as a bridge between two interconnected industries: forestry and furniture. He believes that cross-sector collaboration is key to strengthening the national industrial structure. "The pulp, paper, and furniture industries are one ecosystem. If the synergy is strong, the added value generated will also be significant," he said.

Aryan emphasized that Indonesia possesses extraordinary natural resources, so they must be utilized wisely to continue to be a national strength. His hopes for HIMKI were simple, yet profound: that they continue to grow, adapt, and be able to compete in the global market.

"HIMKI must be the driving force so that this industry becomes a mainstay of national exports," he said. He concluded the discussion by reminding them that the furniture and crafts industry is a reflection of the nation's identity, born from culture, nature, and the sweat of the nation's own people.

Improving the Competitiveness of SMEs in the Face of the Onslaught of Foreign Products

The East Java branch of the Indonesian Furniture and Craft Industry Association (HIMKI) continues to strive to improve the competitiveness of domestic products amidst the onslaught of low-priced foreign furniture and furnishings. This strategic effort has received full support from the Ministry of Industry through various mentoring programs.

The Chairman of HIMKI East Java, Peter S. Tjioe, emphasized the enormous potential of the furniture industry in East Java, contributing more than 10 percent to the national industry. Despite facing a surge in imported products, particularly from China, Peter sees a golden opportunity for Indonesia to replace China, given that many global manufacturers are shifting to Southeast Asia.

"We have a golden opportunity to replace Chinese products. Many global manufacturers are shifting to Southeast Asia, including Indonesia. This is an opportunity we must pursue together with the government," said Peter S. Tjioe at the HIMKI secretariat office in Sidoarjo on Thursday (November 13, 2025).

Peter believes that the central government's attention is crucial in stimulating the regional furniture industry, considering that the majority of business players in this sector are from the Small and Medium Enterprises (SMEs) and MSMEs sector. He cited the furniture product exhibition at Petra Christian University as an example, which he hopes will spark the revival of SMEs, adding that members must be bold in capturing the market before foreign products dominate Indonesia.

Yedi Sabaryadi, Secretary of the Directorate General of Small, Medium, and Miscellaneous Industries (IKMA) at the Ministry of Industry, reiterated the government's commitment to facilitating the needs of SMEs in improving product quality and competitiveness. Through the Directorate General of SMEs, the Ministry of Industry has several development programs that include machine restructuring, product certification, and exhibition and export assistance.

"We are ready to facilitate and assist our SMEs to advance. From institutionalization and production processes to exports, we will assist them all," Yedi explained.

Simplification of the Domestic Component Level (TKDN) policy is also being prepared to make it more user-friendly for SMEs. The government is working to simplify regulations that have previously been a barrier due to administrative complexity, with the aim of expediting the certification process.

In addition to technical guidance, the government is encouraging cross-institutional collaboration between the Ministry of Industry, the Ministry of Cooperatives and SMEs, and local governments to expand the program's reach. The Ministry of Industry has also launched a labor-intensive program that allows MSMEs to access business capital ranging from IDR 500 million to IDR 10 billion, implemented in collaboration with state-owned banks.

The government hopes this financial support and technical assistance will accelerate the process of upgrading MSMEs from micro to small and medium scale, ultimately preparing them to compete at the export level.

The challenge of the flood of cheap imported products from China requires local MSMEs to continuously improve production quality and efficiency. Yedi Sabaryadi emphasized that the market cannot be closed, but the quality of local products must be strengthened to be competitive. Synergy between the East Java Student Association (HIMKI) and the government is key to ensuring MSMEs not only survive but also thrive in the global market.

Selling Cultural Values, Not Just Cheap Commodities

The Indonesian Furniture and Craft Industry Association (HIMKI) believes it's time for Indonesia to break free from the trap of supplying low-priced products to the global market. Transforming into a high-value supplier is considered more strategic for the future of the national creative industry.

HIMKI Chairman Abdul Sobur emphasized that the success of the creative industry is not measured by the frequency of exhibitions or the volume of exports, but rather by the strength of a resilient brand. "We shouldn't just talk about exhibitions and exports. We must talk about brand resilience, and brand resilience isn't about capital, but about mindset," Sobur said in a press release on Wednesday (October 29, 2025).

He cited examples of global brands such as Hermès, Louis Vuitton, Rolex, and Patek Philippe, which have survived despite being flooded with low-priced counterfeit products. He believes the strength of these brands lies in their ability to sell meaning, not just goods. "Counterfeit products only imitate form, but cannot imitate dignity," he said.

Sobur believes that Indonesian creative industry players need to take a similar path. Cultural values, narratives, and local stories must be embedded in every product so that Indonesian works become not just commodities, but also symbols of national identity and pride.

"If we don't tell stories, the world will only see us as factories. But if we tell stories correctly, the world will see us as sources of value," said Sobur.

He also emphasized the importance of distribution strategies and employee welfare as part of brand value. According to him, many companies fail because they focus too much on mass sales without considering reputation and the context of value. "Every distribution point is a reputation stage. How we sell determines how the world treats our work," he continued.

Sobur added that global brands can survive because they make heritage a long-term business strategy. "They are willing to stop selling today so that they will still be respected 30 years from now. Heritage is a business strategy," he said. He believes this approach is crucial in Indonesia so that local products have a sustainable global reputation.