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rawpixel.com competitive market access.
The agreement also provides incentives for industrial
transformation towards environmentally friendly practices
and certification. Furthermore, it opens opportunities for

technical cooperation, joint ventures with European brands
and strengthens Indonesia's position as an alternative supply
chain for Europe.
The (IEU-CEPA) could increase furniture exports to the EU
by 15 percent to 25 percent within the first three years of its
implementation depending on the industry's preparedness,
said Sobur.
According to Djatmiko Bris Witjaksono, Director General
of International Trade Negotiations, these benefits will take INDIA

effect on Entry Into Force (EIF) of the Agreement. The IEU- Indian furniture brands innovating to meet evolving
CEPA ensures market access for goods with both Indonesia demands of domestic consumers
and the EU agreeing to eliminate tariffs. Furniture Design & technology (FDT), an Indian trade magazine,
Witjaksono added that Indonesian products such as has suggested India’s furniture industry is poised to become
footwear, textiles, fisheries, biodiesel, electronics, agriculture, a formidable player in the global market.
forest products and steel have a strong competitive advantage The sector is projected to be worth US$34 billion by 2028
and will gain optimal market access under the agreement. as domestic consumers shift to organised retail outlets as

opposed to the traditional craft sector.
Furniture exports face challenges despite IEU-CEPA Indian brands are said to be innovating to meet the evolving
The Indonesian Furniture and Craft Industry Association (Himki) demands of consumers.
sees significant potential in the European Union (EU) furniture The rise in demand for customised furniture is another trend
market valued at an annual US$58.4 billion especially in which, says FDT, is fuelled by factors such as urbanisation,
light of the, soon to be finalised, Indonesia-European Union increased disposable incomes and a growing preference for
Comprehensive Economic Partnership Agreement (IEU-CEPA). quality home furnishing.
However, Himki Chairman Abdul Sobur said” this potential
cannot fill the gap in expected declines in exports to the US Depressed domestic panel demand challenges panel

due to tariffs”. manufacturers
The EU market presents significant challenges due to strict The correspondent reports Indian panel product manufacturers
sustainability and due diligence standard and this requires continue to face unprecedented challenges despite the halt to
time for local producers to adapt, invest and reposition their imports that began on Feb 28, 2025 due to implementation
products focusing on high value-added items with strong of the new standard requirements.
designs and non-price competitiveness. Domestic demand remains sluggish with no significant
Despite these hurdles, Sobur acknowledges the benefits of increase in sales.

the IEU-CEPA. These include zero tariffs for most Indonesian This stagnation is alarming given the loss of approximately
furniture and craft products entering the EU enabling more 700 containers per month of imported panel products.