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percent, respectively. efficiency and strengthening Indonesia’s position in global
This growth was largely driven by rising demand for film furniture markets.
face plywood and combi plywood as European buyers shifted While Indonesian furniture is recognised for its design
away from Chinese suppliers. Blockboard also remained an strengths, higher production costs remain a challenge
important export product, contributing 22 percent of Indonesia’s compared to competing countries. Increased use of industrial
wood panel exports. machinery and digital solutions, he said, can significantly

In contrast, exports to the US declined sharply following improve productivity, shorten production times and lower
the implementation of anti-dumping and countervailing duties manufacturing costs.
with volumes and values falling by more than half.
Imports by Canada and Mexico helped offset some of Strong dollar – only short term relief for furniture
these losses, recording strong import growth and emerging exporters
as important alternative markets. Indonesia’s furniture and handicraft industry views the recent
Japan remained the most stable destination, maintaining strengthening of the US dollar as only a temporary advantage
steady demand and accepting higher prices from Indonesian rather than a long-term solution for export growth.
suppliers. According to Indonesian Furniture Industry and Craft

Geopolitical tensions severely disrupted exports to Middle Association (HIMKI) Chairman, Abdul Sobur, while exporters
East countries causing significant declines in both volume may benefit from earnings in US dollars some production
and value. costs remain in rupiah such that any exchange rate gains are
Nevertheless, industry stakeholders remain optimistic that offset by higher costs for imported raw materials, machinery,
future reconstruction efforts in the region could generate components, finishing products and shipping.
substantial demand for plywood, positioning Indonesia to As a result, the positive impact of exchange rate movements
benefit from a potential market recovery. does not automatically translate into significantly higher profits

for manufacturers.
Furniture sector digitalisation to boost export Sobur emphasised that the industry’s future depends more
competitiveness on sustainable global demand and stronger competitiveness
Indonesia’s Ministry of Industry is promoting digitalisation in than on currency fluctuations.
the furniture sector as part of efforts to improve productivity, He warned that a stronger US dollar, driven by global
efficiency and export competitiveness. economic uncertainty or high interest rates, could reduce
Speaking at Indo Wood Expo 2026, Industry 4.0 furniture consumption in export markets as consumers tend
Transformation Expert, Andi Rizaldi, said digital technologies
can help streamline production processes, reduce defects

and increase output. pxhere.com
The ministry also welcomed a partnership between the
Indonesian Furniture Industry and Craft Association (HIMKI)
and digitalisation provider Labamu to accelerate technology
adoption.
HIMKI Chairman Abdul Sobur emphasised that adopting
advanced manufacturing technologies is essential for improving