Indonesian Political, Business & Finance News

US Dependence and Import Pressures: A Test for Indonesia's Furniture Industry

| | Source: KOMPAS Translated from Indonesian | Trade
US Dependence and Import Pressures: A Test for Indonesia's Furniture Industry
Image: KOMPAS

JAKARTA, KOMPAS.com - The national furniture industry is facing a complex situation. On one hand, export opportunities remain wide open, particularly to the main market like the United States. On the other hand, pressures from cheap imports, high production costs, and market dependence pose serious challenges that must be addressed immediately.

The General Chairman of the Indonesian Furniture and Handicraft Industry Association (HIMKI), Abdul Sobur, revealed that Indonesia’s furniture industry is still heavily dependent on the US market.

“America absorbs around 54 percent of furniture exports. This means we are already in a state of dependence,” Sobur told Kompas.com in Jakarta on Friday (10/4/2026).

“If the American market is disrupted, the impact is felt immediately. We have seen that when there is tariff pressure, our exports also decline,” he said.

Nevertheless, he acknowledged that the US remains the most stable and largest market to date.

“We must admit, America is the best market right now. The safest and with very high absorption capacity,” he added.

However, this condition forces the industry to start thinking about market diversification strategies. HIMKI is pushing for expansion into other regions such as Europe, the Middle East, and developing countries.

“Diversification is mandatory. We have no other choice but to expand markets to Europe, GCC, India, and BRICS countries,” Sobur explained.

“If tariffs to Europe can be zero, this is a big opportunity to strengthen exports there,” he said.

However, new markets like the Middle East still face challenges, particularly due to geopolitical conditions.

“GCC countries are rich and potential, but now many projects are delayed because of the war situation,” he said.

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