Page 26 - FDMAsia May/Jun 2026

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SeventyFour Enforcement Task Force (Satgas PKH) has reclaimed over 5.88
million hectares from the palm oil sector and about 10,000
hectares from mining activities.

Furniture industries face rising costs and export
barriers

Indonesia’s furniture and handicraft industries are facing
mounting pressure from rising production costs and policy
challenges that are not yet fully supportive.
Industry players are dealing with multiple issues at once,
including higher energy costs, limited access to raw materials,
are intended to produce not only recommendations but operational disruptions and export regulations.
also concrete implementation measures to improve forestry According to HIMKI Chairman, Abdul Sobur, these factors
governance in Indonesia. are interconnected and compound one another, creating real
and immediate strain on businesses.

Indonesia recovers over US$21 billion in forest assets Labour-intensive downstream sectors such as furniture
President Prabowo Subianto announced that the Forest manufacturing are particularly vulnerable due to their reliance
Area Enforcement (Satgas PKH) Task Force has successfully on exports, sensitivity to cost changes and limited ability to
reclaimed State assets valued at approximately Rp370 trillion raise prices in competitive global markets. Without efficiency
(US$21.65 billion). gains or stronger policy support, rising costs risk undermining
He delivered this statement during an official handover Indonesia’s competitiveness.
event in Jakarta, emphasising that the recovered assets Sobur emphasised the need for smoother raw material

represent nearly 10 percent of Indonesia’s total State budget. supply and better liquidity support while urging the government
The president noted that this figure highlights the scale of to adopt more targeted, sector-specific policies and reassess
potential losses caused by illegal occupation of forest areas. overly strict regulations that may hinder production and growth.
Prabowo stressed that the recovery of these assets offers
opportunities to accelerate national development, including Furniture exports to reach US$3 Billion in 2026
upgrading schools, enhancing educational facilities and Indonesia’s furniture industry is targeting a rebound in exports
expanding basic infrastructure. in 2026 aiming to surpass US$3 billion in sales after falling
He also expressed appreciation to the PKH Task Force short of its 2025 target.
for its work in protecting state resources and reiterated that According to HIMKI Chairman, Abdul Sobur, the goal is

strong law enforcement is essential to safeguarding national not just short-term but part of the aim to restore a steady
assets and preventing future losses. upward trajectory in exports.
In related news, the Indonesian government has regained The 2026 target of over US$3 billion (around Rp51.45
control of more than five million hectares of forest land previously trillion) marks an increase from the 2025 target of US$2.9
used for palm oil plantations and mining operations marking billion, with actual exports reaching US$2.6 billion.
a major step in enforcing forest protection. While the outlook for 2026 is considered promising, challenges
Officials reported that since February 2025 the Forest Area remain. Recovering global demand offers opportunities for