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Rather than retreating, industry players are pursuing more US tariffs impact furniture exports
aggressive expansion strategies at the Indonesia International Indonesia’s furniture industry has maintained relatively stable
Furniture Expo (IFEX) 2026 in Tangerang, using the event to performance despite global challenges with the government
demonstrate Indonesia’s resilience and competitiveness in continuing to support small and medium-sized enterprises
the global market. (SMEs) to ensure sustainable growth.
While the US remains the industry’s largest export market The Minister of Industry, Agus Gumiwang Kartasasmita,

(its share recently rising from 54% to 58%) the government pointed to ongoing guidance, assistance programmes and
and industry associations are increasingly diversifying their collaboration with stakeholders to strengthen the industry’s
target markets. competitiveness in both domestic and international markets.
In response to instability in the Middle East, the sector is However, Indonesia’s furniture export performance has
shifting focus toward fast-growing Asian markets, especially been affected by global market dynamics, particularly the
India and ASEAN countries, with officials emphasising the tariff policies of the United States.
need to reduce reliance on a single region and expand into These policies have created uncertainty and highlighted the
new opportunities. need for adaptive strategies and export market diversification.
Promising alternative destinations include Eastern Europe, the

Indonesia explains multi-business forestry plan Middle East, Latin America and Asian countries such as India
Indonesia presented its multi-business forestry strategy at and Japan aiming to reduce dependence on the US market.
the Global Summit on Advancing Sustainable Forest-Based
Bioeconomy Approaches in Vienna, Austria, an event attended MFP Phase 5 launched, ‘Strengthening global trust in
by representatives from 60 countries and 120 international Indonesian forest products’
organisations. The Indonesian and British governments launched Phase
The strategy was introduced as a legally supported framework 5 of the Multi-stakeholder Forestry Programme (MFP) 9 in

aimed at transforming sustainable forest management while February marking a continued commitment to sustainable
promoting growth in the forest-based bioeconomy. forest governance and stronger global trust in Indonesian
According to Krisdianto, Director of Forest Product Dues forest products.
and Administration at Indonesia’s Ministry of Forestry, the Supported by the UK’s Foreign, Commonwealth and
country’s forest utilisation approach now goes beyond timber Development Office (FCDO), the programme builds on a
production by incorporating non-timber forest products, strategic partnership that has existed since 2000.
environmental services and nature-based tourism to expand
economic opportunities.
The framework integrates business licensing under the MJK by Andrei Lychkouski

Forest Utilisation Business License (PBPH), simplifying the
permitting process while maintaining sustainability safeguards.
Krisdianto emphasised that sustainable forest management
requires collaboration among all stakeholders, particularly those
benefiting from forest resources and reaffirmed Indonesia’s
support for the Vienna Call for Action as a guiding framework
for future global forestry policies.