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in Shenzhen, China. In return, Indonesia will reduce tariffs on 10,257 tariff lines,
Indonesia highlighted Japan’s support through the Japan equivalent to 89.9 percent of its national tariff lines mainly
International Cooperation Agency (JICA) for sustainable forest covering industrial inputs and raw materials such as wheat,
management, community-based forest and land fire prevention fertiliser, pharmaceuticals, basic chemicals, dairy products
and mangrove management. along with paper and pulp.
The two countries also discussed strengthening cooperation The Trade Ministry projects that full implementation of the

on the World Mangrove Center (WMC), with Indonesia seeking Agreement could raise Indonesia’s exports to the Eurasian
Japanese support for research, capacity building, knowledge region to between US$2.87 billion and US$2.89 billion.
exchange and innovation to advance mangrove conservation
and climate change mitigation and adaptation. Furniture imports flooding Indonesian market
The countries also explored cooperation on national park The chairman of the Indonesian Furniture and Craft Industry
management through the Sister Park initiative, biodiversity Association (HIMKI), Abdul Sobur, has pointed out that the
conservation and wildlife conservation, including a proposed domestic market is being flooded with imported furniture
Komodo dragon loan to Japan subject to national regulations products.
and international animal welfare standards. According to HIMKI’s analysis in the first quarter of 2024

They further discussed combating illegal logging and imports of furniture products increased by 29 percent year-
promoting legal and sustainable forest-product trade, including on-year to IDR2.07 trillion.
efforts to improve interoperability between Indonesia’s Timber Imported furniture products from China contributed the
Legality and Sustainability Verification System (SVLK) and most (84%) followed by Vietnam (3%), Malaysia (2%) and
Japan’s timber legality requirements under the Clean Wood Act. the US (2%).
Both sides expressed their commitment to ensuring that the Other significant shippers of mainly high value items included
partnership delivers concrete and mutually beneficial outcomes. Italy, Germany, Singapore, Taiwan, South Korea and Japan.

Sobur said Indonesians are buying simple and cheap
Indonesia-EAEU FTA opens US$3 trillion market smart furniture and suggested the government should raise
The ratification of the Indonesia-Eurasian Economic Union Free the Domestic Source Component Level (TKDN) for furniture
Trade Agreement (IEAEU-FTA) is expected to give Indonesian products.
products access to a market worth around US$3 trillion. TKDN represents the value of using goods or services
Trade Minister, Budi Santoso, said EAEU members (Russia, sourced from within the country. This policy aims to advance
Belarus, Kazakhstan, Armenia and Kyrgyzstan) have committed
to eliminating or reducing tariffs on 11,882 tariff lines or 90.5 rihaij
percent of their total tariff lines.

Key Indonesian exports expected to benefit include palm
oil and its derivatives, natural rubber, coffee, fishery products,
textiles, footwear, furniture, electrical equipment and wood
and wood products.
The Agreement is also expected to create new opportunities
for Indonesian micro, small and medium enterprises (MSMEs)
to expand into Central Asia, West Asia and Eastern Europe.