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of the national furniture industry. MYANMAR
HIMKIi Chairman, Abdul Sobur, said the Association Wood industries undermined by payment restrictions
is exploring potential markets and working to improve the Current international banking restrictions on foreign exchange
sector performance. transactions have severely impacted exporters, with the wood

He called for the government to play a significant role in industry being hard hit.
supporting improved industrial productivity and cited examples After the EU and US imposed restrictions on Myanmar,
in China and Vietnam where the governments are supportive citing that trade supports the military government, manufacturers
and encourage competitiveness. have struggled to receive payments for their exports.
Sobur explained that the past poor performance of Even exports to non-EU and non-US destinations are at
Indonesia’s furniture sector was due to low demand from risk due to the banking restrictions. If this situation remains
traditional markets, especially the United States and Europe. unchanged the timber industry faces a serious threat of a
To address this industry players are now focusing on the complete shutdown say local analysts.
domestic market and exploring potential non-traditional markets. This year so far timber exports are at the lowest ever

According to Sobur, Indonesia should follow China's recorded.
example in increasing furniture exports.
Record low timber exports
EUDR, a possible barrier to furniture and handicraft Myanmar reported US$67.855 million from timber exports
exports for the 2023-24 Financial Year (April 2023 to March 2024).
The export of Indonesian forestry and plantation products are This was the lowest level for the last two decades. The
facing numerous barriers. Most recently, the European Union Myanma Timber Enterprise (MTE) put about 3,000 tons of

(EU) has introduced a new regulation, the European Union on teak logs and about 2,000 tonnes of sawn and hewn teak
Deforestation-Free Regulation (EUDR). for tender in the second half of the 2023-2024 Financial Year.
Abdul Sobur, General Chair of the HIMKI, said "this non- The result of tender was not announced.
tariff barrier regulation has the potential to hinder the export According to exporters they are not expecting any quick
of Indonesian furniture and craft products to Europe, adding, revival of the timber trade as long as external financial
it is possible Indonesian exports will be impacted if we fail sanctions on the MTE remain.
to meet EUDR requirements."
Sobur stressed that the EUDR procedure, specifically the
due diligence for product traceability will be a major challenge needpix.com

for many HIMKI members as not all will be able to put in
place proceedures to satisfy the EUDR requirements.
Sobur explained that HIMKI is working to assist furniture
and crafts entrepreneurs in addressing current issues such
as the regulations in the EUDR. They are also urging the
government to anticipate the impact of these EU regulations.
"The government must take the lead in anticipating the

impact of the EUDR by engaging in cooperation negotiations
or other initiatives", he said.