The Ministry of Trade recorded total furniture exports to the United States worth USD 1.64 billion, equivalent to IDR 27 trillion (exchange rate IDR 16,405), with a market share in this sector of 5.57%. The Ministry of Trade has been negotiating with the United States to remove reciprocal tariffs on furniture products and deregulate regulations to increase furniture exports. Trade Minister Budi Santoso stated that every export of furniture and furniture products to the United States will be subject to an import duty of 3%. During the negotiation stage, Indonesia is subject to a baseline tariff of 10% in order to implement reciprocal tariffs for a period of 90 days.
As of 2024, Indonesia's furniture and handicraft exports are ranked 20th in the world, with an export value of USD 2.43 billion or IDR 40 trillion. Minister Budi is optimistic that Indonesia can secure a position within the top 10, supported by the ongoing deregulation process of exports and imports, as well as trade facilitation. The Ministry of Trade has collaborated with the Ministry of Forestry and relevant associations to eliminate V-Legal obligations or documents, to fulfil the Timber Legality and Verification System (SVLK). Minister Budi conveyed the initiative that wood-derived products such as furniture and handicrafts be exempt from V-Legal requirements, with the stipulation that countries like the UK and the European Union, which require V-Legal, should adhere to the regulation. For all other countries, the recommendation is that V-Legal is not mandatory, except for wood products, for which SVLK compliance is mandatory.
