The Indonesian Furniture and Craft Industry Association (HIMKI) has urged the government to secure preferential export tariffs to the United States before the new U.S. tariff policy takes effect on July 9, 2025. HIMKI Chairman Abdul Sobur emphasized that if Indonesia can achieve lower tariffs than competitors such as Vietnam and Malaysia, it would open up strategic opportunities to boost exports, attract international investment, and create 5 to 6 million jobs, both directly and indirectly. Conversely, higher export duties could reduce global demand for Indonesian products and weaken the country's position in the global supply chain. HIMKI also expressed appreciation for President Prabowo Subianto’s commitment to deregulation and called on the government to address exporters' current challenges, particularly in the furniture and craft sectors.
To support industry growth, HIMKI proposed five main strategies: strengthening tariff diplomacy to position Indonesia as a long-term U.S. trade partner, expanding market access through agreements like IEU-CEPA and BRICS cooperation, reforming the export ecosystem to improve efficiency, offering fiscal incentives such as VAT exemptions and low-interest loans, and enhancing domestic protection through stronger regulations. Additionally, HIMKI suggested income tax incentives for exporters that contribute significantly to job creation and foreign exchange earnings. The association reaffirmed its commitment to partnering with the government in transforming Indonesia into a leading global manufacturing hub for furniture and crafts, aiming to help drive national economic growth to double-digit levels in the future.
