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in consumer markets. for mitigation and adaptation projects. It also offers diversified
These issues have suppressed demand in key export revenue streams for landowners and forest managers by
markets like the US and Europe and have made international monetising ecosystem preservation.
buyers hesitant to commit to long-term agreements. Beyond financial benefits the VCM can accelerate climate

Domestically, the industry is also struggling with challenges action by enabling companies and individuals to offset emissions
such as high minimum wages and rising logistics costs which thereby speeding up the adoption of low-carbon technologies
are eroding competitiveness, especially for smaller businesses. and sustainable practices.
In response to these challenges businesses have set a
conservative growth target of less than two percent for the Sustainable forest management by communities
entire year, a goal that can only be met if global demand The ‘Strengthening of Social Forestry in Indonesia’ project
remains stable. (SSF Project) has successfully empowered communities and
advanced sustainable forest management.
Furniture importers shifting to Vietnam According to Forestry Minister, Raja Juli Antoni, this initiative

Indonesian furniture exporters are facing a significant challenge is part of a national strategic project aimed at ensuring forests
following the 19 percent import tariff by the US. benefit a wider population, not just a small elite.
According to the Indonesian Furniture and Craft Industry The SSF Project has surpassed its goals, granting legal
Association (HIMKI), this tariff, though lower than a previously access rights to 364,274 hectares of forest land to 706
threatened 32 percent, is eroding profit margins and causing community groups, representing over 86,000 households.
US buyers to shift orders to competitors like Vietnam which The Minister emphasised the importance of continued
has similar tariffs, but more established production efficiency. collaboration among all stakeholders to ensure the project's

The tariffs particularly impact medium to premium wooden long-term success and guarantee community welfare.
products which constitute a large portion of Indonesia's US$1.5
billion annual furniture exports to the US. IEU-CEPA grants zero tariffs to several export
The HIMKI is calling for diplomatic efforts to lower the commodities
tariff or secure exemptions for labour-intensive industries. The Ministry of Trade announced that several Indonesian
They also propose a multi-pronged strategy that includes export commodities will benefit from zero tariffs under the
providing fiscal incentives to exporters, accelerating the Indonesia–European Union Comprehensive Economic Partnership
diversification of export markets beyond the US and strengthening Agreement (IEU-CEPA).
the industry's production capacity and competitiveness.

Finally, HIMKI stressed the importance of protecting the Skitter photo
domestic market from an influx of imported goods from
countries like China and Vietnam.

Carbon trading, a way to create green Innovation
The Voluntary Carbon Market (VCM) presents significant
opportunities for Indonesia, according to Ignatius Wahyu

Marjaka of the Ministry of Environment and Forestry.
The VCM can provide innovative climate funding, especially