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www.urbanconcepts.ph Committee of the Forest Law Enforcement, Governance and
Trade Voluntary Partnership Agreement (FLEGT-VPA) Indonesia
and the EU reviewed their cooperation and exchanged views
on global developments in forestry regulations and trade.
Indonesia highlighted its Legality and Sustainability Verification
System (SVLK) and FLEGT-VPA as key mechanisms to ensure

the legality and traceability of forest products and provide
greater certainty for international markets.
The two sides also emphasised the need for closer dialogue
to align their understanding of market developments, particularly
the European Union Deforestation Regulation (EUDR).
Wooden furniture – positive trade balance EU Ambassador to Indonesia, Denis Chaibi, said the FLEGT-
In June 2026, Malaysia exported MYR219 million and imported VPA remains relevant under the EUDR, with FLEGT-licensed
MYR123 million of wooden furniture resulting in a positive forest products recognised as meeting its legality requirements.
trade balance of US$96 million. He also reaffirmed support for Indonesian exporters seeking

Between May 2026 and June 2026, exports of furniture access to the European market through the FLEGT mechanism.
from Malaysia decreased by five percent, during the same
period imports increased by nine percent. US antidumping duties on plywood exports
The US is moving toward imposing antidumping and
Sarawak/Japan MOU on forest ecosystem functions countervailing duties on decorative plywood imports from
The Sarawak government signed a memorandum of understanding Indonesia, China and Vietnam after the US International
(MoU) with National University Corporation Kyushu University Trade Commission (USITC) unanimously determined on 19

(Kyushu-U) in Fukuoka, Japan to facilitate bilateral collaboration August 2026 that these imports had materially injured the US
and research on forest ecosystem functions as part of forest decorative plywood industry.
assessments to be carried out under forest carbon initiatives For Indonesian products the combined antidumping and
in Sarawak. countervailing duty margins set by the US Department of
The MoU also aims to facilitate skills sharing through Commerce range from 28 percent to 213 percent, significantly
capacity building, training for forestry officers and a student increasing the cost of Indonesian plywood in the US market.
exchange programme and other areas of mutually agreed The antidumping case stems from a petition filed by a
collaboration. coalition of US plywood producers in May 2025, alleging
that imports from the three countries were unfairly priced and

INDONESIA benefited from subsidies.
Indonesia and EU strengthen cooperation on
sustainable forest trade Indonesian furniture at just 3% of US market - room for
Indonesia and the European Union are strengthening cooperation growth
on sustainable forest management and trade in legally and US furniture imports reached approximately US$52 billion in
responsibly sourced forest products. 2025 while Indonesian furniture exports to the US totalled
During the 11th meeting of the Joint Implementation only US$1.57 billion, or about three percent.