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Industry needs machinery upgrades welcomed Finland's interest especially concerning environmental
To raise the quality and competitiveness of Indonesia's furniture preservation, digitalisation and approaches that respect
and wood products machinery upgrades are crucial. indigenous values.
Jimmy Chandra, Deputy Chairman for R&D and Regulations

at the Indonesian Sawmill and Woodworking Association, Indonesia-EU CEPA Nears Completion as Final Hurdles
emphasised that investing in advanced machines and Cleared
technologies is the only way to achieve efficiency and improve The Indonesian government is close to finalising the Indonesia-
product quality. European Union Comprehensive Economic Partnership
Chandra also stressed the importance of Indonesian Agreement (IEU-CEPA) having reached consensus on all
industry players not just hosting exhibitions but also actively outstanding issues.
participating in international events. Coordinating Economy Minister, Airlangga Hartarto, confirmed
He urged the Indonesian government to provide subsidies that the final technical matters have been resolved after nine
or support for local companies to showcase their products years and 19 negotiation rounds. This agreement reflects

on the global stage similar to the support provided by some Indonesia's commitment to expanding market access, boosting
other countries. investment and reducing trade barriers with strategic partners.
He added Indonesian wood product manufacturers are The EU is Indonesia's fifth-largest trading partner, with
urging the government to lower import duties on production bilateral trade reaching US$30.1 billion in 2024. The IEU-CEPA
machines. is projected to significantly lower import duties with up to 80
According to Chandra the industry faces challenges due percent of Indonesian exports to the EU benefiting from zero
to limited technological utilisation while other countries are tariffs within two years of implementation.

using more efficient, modern machinery. Key sectors poised to benefit include labour-intensive
Chandra specifically requested a 20 percent reduction on industries like footwear, textiles and garments as well as palm
import duties for the latest generation of production machines. oil, fisheries, renewable energy and electric vehicles.
He stressed that modernising production machinery is essential Indonesia has also secured equal treatment for its fishery
for the woodworking industry to be more competitive in exports and special consideration from the EU regarding its
international markets. deforestation policy.
Minister Hartarto affirmed the mutually beneficial nature of
SFM and digitalisation cooperation with Finland the pact, its long-term sustainability and its strategic importance
The Papua Provincial Administration recently met with Finnish in enhancing Indonesia's global competitiveness and attracting

Ambassador to Indonesia, Jukka-Pekka Kaihilahti, to discuss
potential cooperation on SFM and digitalisation.
Ambassador Kaihilahti highlighted Finland's strong emphasis NewtonCourt
on environmental sustainability and expressed hope that
collaboration in these areas could be realised in Papua.
He reiterated Finland's commitment to strengthening ties
with Indonesia, particularly in telecommunications, forestry and

digitalisation, which are also priorities for Papua.
Acting Regional Secretary of Papua, Suzana D. Wanggai,