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the rationale behind this regulation as it does not consider Market diversification pursued to expand exports
the unique characteristics of the furniture and craft industry”. Deputy Minister of Trade Dyah Roro Esti Widya Putri emphasised
He added "we believe that implementing this regulation that export market diversification is a government strategy to
without a specific mechanism for finished goods is an unfair expand trade reach not merely a response to United States

policy. It equates creative industry products with raw materials tariff policy.
which could potentially undermine the contribution of the The Deputy Minister affirmed that the government continues
sector to the national creative economy sector." to expand cooperation through several trade agreements
such as the Comprehensive Economic Partnership Agreement
Furniture producers target nontraditional markets (CEPA) and Free Trade Agreements with various countries.
Indonesian furniture producers are actively seeking to penetrate Putri remarked that target markets include Australia, South
new markets in Central and Eastern Europe even though recent Korea, African and the Middle East countries where the aim
tariff changes in the United States do not yet impact them. is to open market access for Indonesian products with high
Expanding into non-traditional markets is essential to competitiveness.

anticipate future geopolitical dynamics particularly as the
United States currently represents the primary market for Forestry professionals advance sound forest
Indonesian furniture accounting for approximately 53 percent management
of total exports. Indonesian forestry professionals, government officials and
To support this market diversification Indonesian furniture journalists were recently in the United States participating in
was showcased at the HOMEDesign 2025 exhibition at the the US Department of State’s International Visitor Leadership
Hungexpo Budapest Congress and Exhibition Centre in Budapest. Program (IVLP) on “Improving Forest Management.”

Suci Mahanani, the Head of the Indonesian Trade Promotion The programme promotes sound forest governance and
Center in Budapest, noted this event is Hungary's largest retail community-centred conservation practices which contribute
exhibition for furniture, household appliances, accessories and to economic prosperity.
home decoration products. Participants engaged with US experts and counterparts
In related news, the Ministry of Industry is actively encouraging across government, community organisations, academia and
small and medium-sized industries in the furniture sector the private sector to explore innovative forest management
to expand their markets to Middle Eastern countries. This
initiative includes facilitating exhibitions, providing mentoring
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and organising business matching events.

Reni Yanita, the Director General of Small, Medium and
Miscellaneous Industries at the Ministry of Industry, stated
that the national furniture industry has significant potential
for growth.
Bayu Fajar Nugroho, the Director of Small and Medium
Industries for Food, Furniture and Building Materials, emphasised
the importance of market diversification to enhance the

resilience of the national industry. He noted that Middle East
countries have a significant demand for furniture products.