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pixabay Strategic Indonesia/US partnership
The Indonesian Furniture and Handicraft Industry Association
(ASMINDO) has strengthened sustainable trade ties with
US hardwood exporters following the signing of the
Indonesia–US Agreement on Reciprocal Tariff (ART) on
18 February 2026.

Although the reciprocal tariff was later overturned by
the US Supreme Court, ASMINDO continues to pursue the
partnership to enhance the competitiveness of Indonesian
furniture exports.
Chairman Dedy Rochimat emphasised that the
collaboration focuses on sustainability and legal compliance
with international regulations, including due diligence and with imported raw materials complementing, not replacing,
anti-deforestation standards to maintain credibility in global domestic timber.
markets. The initiative aims to increase export volumes while keeping

Through SVLK+ and broader digitalisation, Indonesia aims value-added processes such as manufacturing and design
to enhance law enforcement, boost international trust and within Indonesia, benefiting local Small and Medium Industries
strengthen its position in global forest product trade. (SMEs) and the broader national industry.
The partnership seeks to broaden the range of materials
Indonesia as global furniture manufacturing hub available to Indonesian producers, enabling them to enter mid-
The Indonesian Ministry of Industry aims to establish the country to-high-end market segments with strict material standards.
as a global hub for furniture manufacturing by enhancing Beyond simple trade, the cooperation involves technical

sustainable wood downstream processing and strengthening exchanges on wood species and quality standards, as well
the competitiveness of the national industry. as networking opportunities between Indonesian furniture
Over the next five years, Indonesia plans not only to producers and American exporters.
expand production capacity but also to take a leading role Initial efforts will prioritise understanding materials and
in design and sustainability. creating a transparent, legal supply chain, forming part of
However, the national furniture industry faces challenges, ASMINDO’s larger vision to elevate Indonesia’s furniture industry.
including a three percent decline in exports to US$1.85 billion By integrating American hardwood into various product
in 2025 and a six percent rise in imports to US$0.82 billion. categories, from solid wood furniture to crafts, the initiative
Indonesia’s Legality and Sustainability Verification System is expected to strengthen Indonesia’s manufacturing capacity

(SVLK) provides a strong foundation to ensure responsible while fostering a mutually beneficial trade relationship with
and sustainable production. US suppliers.
To increase productivity the ministry has implemented the
Wood Processing Industry Machinery/Equipment Restructuring Eying growth in India and ASEAN markets
Programme supporting 35 companies with IDR26.1 billion Indonesia’s furniture and wooden handicraft industry is
in reimbursements and achieving notable improvements in navigating rising global geopolitical uncertainty, particularly
efficiency, product quality and overall productivity. following escalating tensions in the Middle East.