Furniture Industry Squeezed, Exports Dependent on US, Domestic Market Flooded with Imports

JAKARTA, KOMPAS.com - The national furniture and handicraft industry is facing pressure from two fronts. Export dependence on the United States remains high. The domestic market is also flooded with cheap imported products, particularly from China.

General Chairman of the Indonesian Furniture and Handicraft Industries Association (HIMKI) Abdul Sobur acknowledged the significant dominance of the US market. The export share to that country reaches more than half of the national total.

“Now we are very dependent. Our largest market is indeed America, with its contribution already at 54 to 56 percent, even potentially rising to 60 percent,” Sobur said when met by Kompas.com on Friday (10/4/2026).

This dependence carries risks. Disruptions in the US market directly pressure Indonesian exports.

“As soon as there is a disruption, for example, high tariffs, we immediately struggle. The growth target that was initially aimed at 8 percent or even 10 percent gets disrupted,” Sobur stated.

Indonesia’s furniture export value once reached around $3.5 billion. That figure then declined due to pressures in the US market. HIMKI targets exports to reach $6 billion by 2030.

“That means penetration into America must continue to be pushed, because it is indeed the largest market and relatively the safest at present,” he added.

HIMKI has begun tapping into new markets. India, the Gulf region, Africa, and BRICS countries are among the targets. Demand is starting to emerge, but contributions remain limited.

“New markets like India and Africa are starting to be explored. There is already demand, but not yet as large as America or Europe,” he explained.

Sobur assessed that regulatory improvements are the initial step. Policies need to favour the domestic industry.

“Regulations must be tidied up first, must be more supportive of the domestic industry. If that is strong, we can suppress imports, especially illegal ones,” he emphasised.