Heaptalk, Jakarta — Furniture entrepreneurs who are members of the Indonesian Furniture and Craft Association (Asmindo) have voiced concerns about the impact of U.S. President Donald Trump’s policy, which raised the import tariff on Indonesian products to the U.S. by 32%.
Dedy Rochimat, Chairman of Asmindo, stated that this policy could lead to job cuts in the furniture industry. “The decline in utilization will ultimately lead to a reduction in the workforce,” Dedy said in his statement on Sunday (06/04).
Representing Indonesian furniture entrepreneurs, Dedy explained that the United States is currently Indonesia’s leading export destination. Of the total value of Indonesia’s furniture exports, which stands at US$ 2.2 billion, 60% is exported to the U.S. He emphasized that this policy would have a significant impact on the sustainability of Indonesia’s furniture industry.
However, he understands the reasons behind Trump’s decision to impose high import tariffs on several countries, aiming to protect domestic industries. Therefore, he believes the government must act wisely and calmly in responding to this issue. “Although calm, it is important for stakeholders to remain vigilant about the impact of U.S. policies. Stakeholders also need to prepare several preventive measures immediately,” he added.
Dedy encouraged the Indonesian government to adjust specific tariffs on U.S. products. However, he emphasized that the impact should be kept to a minimum to avoid disrupting bilateral relations with the United States. He explained, “To anticipate a decline in exports to the U.S. market, the government could optimize access to non-traditional markets, which it has been working on in recent years.”
In addition to expanding export markets, the Indonesian industry must also optimize the domestic market absorption. Increased government spending on locally made products will accelerate economic growth. Dedy explained that increasing domestic market absorption and protecting domestic industries by using local components has been achieved through the consistent implementation of the domestic content level (TKDN).
Not only that, Dedy proposed that the government implement effective governance to reduce the influx of cheap and illegal imports that disrupt Indonesia’s national industry. “To encourage domestic industries, policies that provide incentives and facilitate labor-intensive industries are also necessary, both for those focused on domestic markets and those targeting exports. It is also essential to have a well-managed investment permit system that is friendly to investors so that it can stimulate investment growth in industries capable of producing competitive products through technological expertise,” Dedy concluded.
