Furniture Shipments Stall Amid US Tariff Uncertainty, Indonesian Exporters Warn
Jakarta. Indonesian furniture and handicraft exporters are bracing for potential disruptions as the United States considers imposing a steep 32 percent tariff on imports from Indonesia, threatening the country's largest export market for the sector.
According to Abdul Sobur, Chairman of the Indonesian Furniture and Handicraft Industry Association (HIMKI), the US remains Indonesia’s largest export market for furniture and crafts, accounting for approximately 53.8 percent of the country’s total shipments in the sector.
“The US is a very significant market for us. If the 32 percent tariff is imposed, it will definitely disrupt our industry,” Sobur said during a Corporate Insight talk show hosted by Beritasatu on Friday.
The US government initially planned to enforce a 32 percent tariff on Indonesian furniture imports beginning April 9. However, implementation has been delayed for three months, giving a temporary reprieve to Indonesian exporters.
Despite the delay, the policy announcement has already had a chilling effect on business. Sobur said American buyers are holding off on purchases from Indonesia due to lingering uncertainty, causing goods to pile up in warehouses and disrupting cash flow for exporters.
“Even though the tariff hasn’t been enforced yet, the impact is already being felt. Several shipments have been postponed, and production is now backing up at the factory level,” Sobur noted.
Exporters are now urging US buyers who have already placed orders to accept delivery of the products to prevent further backlog and financial strain.
“Our buyers are still waiting for the situation to stabilize before proceeding with shipments,” Sobur added.
Industry players fear that if the tariff is ultimately enacted, it could derail a key export sector that has been a strong contributor to Indonesia’s trade balance and employment, particularly in Java and Bali where furniture and craft production is concentrated.
Tags: Keywords:Related Articles
ASEAN Hopes for Predictability on Trump’s Tariffs
ASEAN says the region's businesspeople wish for a predictability and certainty as Trump launches a fresh round of tariff hikes.Indonesia in Talks with US for 0% Tariff on Palm Oil
Indonesia is in talks with the US to have its palm oil exempted from the latest tariff measure.Indonesia Banks On EU as Trump's 10% Tariff Kicks In
Indonesia wants to fast-track its European Union (EU) trade deal as Jakarta tries to find alternatives to the tariff-agressive US.Indonesia Hopes US Tariff-Free Promises Stay as New Levy Hits
The US has opened up the possibility of tariff reductions for a certain volume of Indonesian textiles in the latest trade measure.US Slaps 10% Tariff on Indonesia over Forced Labor
A new 10% tariff on Indonesia following a forced labor probe will take effect on Friday before noon.Tariff-Free Indonesian Palm Oil to Keep Dominance in US
Indonesia will not lose its market dominance to rival producer Malaysia ahead of a Section 301 tariff exemption.From 32% to 10% to 18%: Indonesia Lives Under Trump's Tariff Uncertainties
Indonesia has been trying to navigate US trade uncertainties, but officials are confident that the tariffs won't derail exports.US to Give Tariff Exemptions for Indonesian Spare Parts, Plantation Commodities
Indonesia has signaled US tariff exemptions for its exports of spare parts and plantation commodities,Final US Tariff on Indonesia to Reach 18%
Indonesia also says its US-bound textile exports will get tariff reductions.US Slaps 10% Forced Labor Tariff on Indonesia
The US has slapped an additional 10% tariff on Indonesia for letting imported goods linked with forced labor enter the country.The Latest
Ferry Carrying 250 People Catches Fire Off Madura, Rescue Underway
A rescue operation is underway after a ferry carrying about 250 people caught fire off Madura, East Java.New BGN Chief Faces Fresh Mass Food Poisoning Case Nine Days Into Role
More than 700 students and teachers fell ill in the latest food poisoning case linked to Indonesia's free meals program.SEZs Draw $1.8 Billion in Investment as Indonesia Expands Industrial Hubs
Indonesia's Special Economic Zones attracted Rp 32 trillion in investment in the first half, with foreign investors leading the way.Prabowo Says South Korea's Lee Asked Indonesia to Help Open Dialogue With North Korea
President Prabowo Subianto says South Korea's Lee Jae Myung asked Indonesia to help open dialogue with North Korea.Pullman Hotel Fire in Jakarta Suspected to Stem From Electrical Fault
Police will deploy a forensic team to investigate a fire at Pullman Hotel in West Jakarta, with an electrical fault suspected as the cause.Most Popular
