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Bureau of Land Management Oregon and Washington Malaysia-EU Free Trade Agreement (MEUFTA) will resume. Indonesian furniture exports (HS 9401-9403) reached US$1.47
billion, an increase of 0.7 percent compared to the previous
In 2023, the EU was Malaysia’s fourth largest trading
partner with trade reaching RM206.79 billion.
year. However, the national furniture industry faces challenges,
For the period of January to November last year trade
including logistical constraints due to geopolitical conditions
and environmental sustainability regulations in export destination
with the EU grew by five percent to RM 200billion compared
countries.
to the same period in 2023.
As of 2023, the domestic press reports EU investments
In addition, rising imports of metal and plastic furniture
in Malaysia have generated over 153,000 jobs through 1,323 have become a competitor for the wooden furniture industry.
projects valued at RM227.9 billion. To face these challenges, the Ministry of Industry has
prepared five main strategies, namely: facilitating the availability
INDONESIA of raw materials, improvement of skilled human resources,
Indonesian wood products prepared for the EUDR market expansion and market research, increasing productivity
The Ministry of Forestry is ensuring that exports of Indonesian and product quality and creating a conducive business climate.

forest products are ready to face the EUDR. Putu emphasised that the national furniture industry must
The Director General of Sustainable Forest Management, continue to pay attention to the domestic market with more
Ministry of Forestry, Dida Migfar Ridha, said "We are ready efficient and environmentally friendly production innovations.
for EUDR, we are ready with the timber legality verification
system or SVLK to ensure traceability of forest products." Broaden export markets beyond the US
Dida mentioned that the SVLK has incorporated geographical The Coordinating Minister for Economic Affairs, Airlangga
locations to satisfy export requirements. However, he also Hartarto, aims to maximise Indonesia's potential in export

hopes the European Union and Indonesia can collaborate markets beyond the US.
and agree on a common reference map. He stated that, given the US government policies Indonesia
must explore trade opportunities worldwide. He added “we
Encouraging down-streaming of furniture sector need to maximise on the Comprehensive Economic Partnership
The Ministry of Industry continues to implement its forest Agreement (CEPA) and to initiate trade cooperation with
products down-streaming policy to add value. countries outside the US”.
One of the actions is through the development of an The Minister Airlangga mentioned that drafting a legal
innovative and competitive furniture industry. This aims to framework for Indonesia's comprehensive economic cooperation
strengthen the industrial structure, create jobs, encourage with various other countries is already in progress.

exports and support import substitution. He said "we are also collaborating with the Gulf Cooperation
The Director General of Agro Industry of the Ministry of Council (GCC) and are looking closely at partnerships with
Industry, Putu Juli Ardika, revealed that the furniture industry others. The Minister said we hope that Indonesia's accession
contributed 1.15 percent to non-oil and gas GDP in 2024. to the Comprehensive and Progressive Agreement for Trans-
At a National Working Meeting of the Indonesian Furniture Pacific Partnership (CPTPP) will open markets in the UK,
and Craft Industry Association (HIMKI) Putu said "the furniture Canada and Latin America.
industry is an important part of the agro industry sector which

recorded a growth of 2.07 percent in 2024. Improving human resource skills in the forestry sector
In the period of January-November 2024, the value of The Ministry of Forestry's Human Resources Extension and