HIMKI: Furniture Industry Cannot Rely on Rupiah Depreciation Indefinitely
JAKARTA – The Indonesian Furniture and Craft Industry Association (HIMKI) has stated that the national furniture industry cannot continue to depend on rupiah depreciation to sustain export competitiveness.
Business operators believe strengthening the industry’s fundamentals is far more important than temporary gains from exchange rate fluctuations.
HIMKI Chairman Abdul Sobur said healthy businesses should not make exchange rate movements their primary business strategy.
“For healthy industry players, exchange rates should be seen as a small bonus, not the main business strategy. The industry cannot rely on rupiah depreciation for competitiveness,” Sobur said on Wednesday (27 May 2026).
Such improvements include increased productivity, production efficiency, design innovation, human resources quality, and consistent regulatory support.
“More important are productivity, efficiency, design innovation, human resources quality, and consistent regulatory support,” he added.
Sobur noted that the national furniture industry still faces structural challenges that prevent optimal competitiveness in global markets.
“To be honest, Indonesia’s furniture industry needs structural competitiveness, not just temporary gains from exchange rate movements,” he said.
He cited Vietnam as a country that excels in the global furniture industry.
According to Sobur, Vietnam’s advantage does not come from currency exchange rates but from policy certainty and strong industrial ecosystem support.
“Vietnam often outperforms not because of its currency, but due to policy certainty, service speed, strong industrial ecosystem support, and highly measurable productivity,” Sobur said.
This is because export transactions use US dollars, while part of production costs remain in rupiah.
“Theoretically, a stronger US dollar can benefit Indonesian furniture and craft exporters as export revenue is received in US dollars while part of production costs are still in rupiah,” he said.