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A challenge for industry: scarcity of high-quality raw To support this goal, the government is promoting a
materials hexahelix model of collaboration, engaging stakeholders
Indonesia's wood industry is currently grappling with significant from government, business, academia, communities, media
challenges primarily due to the scarcity of high-quality raw and investors.

materials and rising global demand for eco-friendly products.
According to the Indonesian Sawmill and Woodworking CEPA with Canada and EU strengthens trade
Association (ISWA), the future of the sector depends heavily opportunities
on technological innovations that enhance product lifespan, Trade Minister Budi Santoso announced that the signing of
durability and environmental sustainability. the Comprehensive Economic Partnership Agreements (CEPA)
These innovations are not limited to furniture or woodworking with Canada and the European Union marked the beginning
but extend to architecture, construction and property development, of efforts to strengthen Indonesia's position in global trade.
underlining the need for cross-sector collaboration. He emphasised that these agreements, namely the ICA-
ISWA leaders argue that innovative treatments such as CEPA with Canada and IEU-CEPA with the European Union

eco-friendly chemicals and high-temperature processes can are crucial for boosting Indonesian exports amid the current
significantly improve the quality of fast-growing or plantation global trade and geopolitical challenges.
wood making it more stable and less prone to manufacturing In 2024, Indonesia’s exports to Canada were valued
defects. at US$3.5 billion, while exports to the EU stood at US$30
This not only adds value for farmers and the industry but billion, and both agreements are expected to further increase
also helps extend the wood’s lifespan from a few years to these figures.
decades. Ultimately, innovation in the wood industry is being The ICA-CEPA, signed in Ottawa in September provides

positioned not just as a business solution but as a broader preferential treatment for over 90% of Indonesian tariff lines,
environmental and social strategy for sustainable development. potentially boosting the competitiveness of products like
textiles, footwear, furniture and electronics in Canada.
Indonesia - global hub in furniture innovation Similarly, the IEU-CEPA, signed in September focuses on
Indonesia is aiming to become a global hub for furniture reducing tariffs on over 98 percent of goods traded between
innovation driven by steady growth in its furniture, handicraft Indonesia and the EU. This agreement aims to increase
and interior design sectors. Indonesian exports to the EU by 2.5 times within the next
According to the Ministry of Creative Economy, these five years with a focus on labour-intensive sectors such as
industries play a significant role in job creation and export palm oil, coffee, textiles and furniture.

performance.
In 2025 furniture exports accounted for approximately pixabay.com
12 percent of the handicraft subsector ranking second and
surpassing other categories such as musical instruments and
children's toys.
At the IFMAC and WoodMac 2025 exhibition in Jakarta,
Deputy Minister Yuke Sri Rahayu highlighted the importance of

international collaboration particularly in wood processing and
hardware to boost the country’s position in the global market.