The Indonesian government is set to sign a Comprehensive Economic Partnership Agreement (CEPA) with the European Union by the end of September 2025, creating new opportunities for the country’s furniture exports. Under this agreement, 80% of Indonesian furniture products will be granted access to the European market with 0% tariffs, effectively removing import duties for the vast majority of goods. This move is designed to boost the competitiveness of Indonesia’s furniture industry globally.
Economically, the furniture sector is viewed as both labour-intensive and high in value addition, using mostly domestically sourced materials like tropical wood, rattan, bamboo, and cork. The government believes these strengths—unique resources and skilled craftsmanship—provide Indonesia with an edge, especially over countries in subtropical zones. With this tariff-free access to Europe, the expectation is that exports will expand, employment will rise, and the furniture sector will further reinforce its role as a strategic component of Indonesia’s economy.
