Indonesian Entrepreneurs Scramble for New Markets Amid War and Rupiah Pressure
The business world has been grappling with geopolitical turmoil and global uncertainty recently. After the war in the Middle East, internal factors such as the pressure of the dollar exchange rate exceeding Rp 18,000 per US dollar are further suppressing domestic industry.
Business leaders reveal they are implementing various strategies to survive the current situation, including expanding markets to various countries to avoid relying solely on monotonous markets.
‘Diversify markets, do not pile up in one or two countries or regions, but aggressively seek new buyers starting from Europe, East Asia, Australia, and India,’ said Abdul Sobur, Chairman of the Indonesian Furniture and Craft Industry Association (HIMKI), to CNBC Indonesia.
According to data from Statistics Indonesia (BPS), Indonesia’s export value in the first quarter of 2026 reached US$66.85 billion, with the processing industry sector contributing US$54.98 billion, or 82.25 percent of total national exports. This figure grew by 3.96 percent compared to the same period the previous year.
Amid the continuously strengthening dollar exchange rate and global geopolitical uncertainty, industry players assess marketing strategy as a critical factor for maintaining business continuity. Companies are not only required to maintain production cost efficiency but must also be able to anticipate potential logistics disruptions and changes in demand from export markets.
‘Practical and executable strategies for business players include strengthening production buffers and time buffers, for instance, increasing lead times, booking vessels earlier, and then diversifying routes and port choices to reduce the risk of relying on a single route,’ said Sobur.
Businesses are endeavouring to boost exports, including through the IndoWood Expo 2026, which brings together industry players from upstream to downstream with domestic and international buyers.
Sobur asserted the future expansion of Indonesia’s furniture and craft industry is determined not only by product quality and creativity but also by the capability of industry players to increase productivity, efficiency, and adopt modern manufacturing technology.
‘Indonesia has abundant natural resources, a creative workforce, and a furniture and craft industry whose products are present in various countries. However, to compete globally, we need to strengthen productivity and efficiency through the use of technology and the development of an integrated industrial ecosystem,’ said Sobur.