Jakarta. Indonesia is struggling to catch up to Vietnam in US-bound furniture exports despite Jakarta gaining lower forced labor-related tariffs, although cabinetmakers are confident that they can beat Malaysia soon.

An estimate shown by the government revealed that Indonesia only supplied 2.2% of US furniture imports as of 2025, while Malaysia held a 3.3% share. Vietnam topped the ranks at 27.2%. Over half of Indonesia’s furniture shipments go to the American market, hence making US President Donald Trump’s tariff moves a make-or-break for the industry.

But the Indonesian furniture association Himki recently revealed that “tariffs were not the only challenge” that caused Jakarta to fall behind.

“We still need to improve our logistics from a price and delivery time standpoint. Indonesian shipments have to go to the ‘mother vessels’ in Malaysia or Singapore. China and Vietnam can directly ship their exports to the US,” Himki marketing head for the America region Rudy Hartono recently told a business forum.

Small and medium-sized industries struggle to access export financing, preventing them from upgrading their equipment. 

Tariff-wise, Indonesia currently enjoys a slight edge versus Vietnam. The US has slapped a new 10% tariff on Indonesia following a probe into Jakarta’s forced-labor import prohibitions, while the tax on Vietnam is at 12.5%. A 25% “national security” tariff on foreign-made furniture, however, is in place. 

While dethroning Vietnam might take time, Rudy was upbeat that Indonesia could surpass Malaysia’s exports in the near future. 

“Indonesian furniture producers offer flexibility in accepting custom orders. We also excel in unique designs,” Rudy said. 

Last year, Himki shook hands on a deal with the American Hardwood Export Council. Himki’s members agreed to use American input for their production, and the goods will eventually go to the US market.

Himki floated plans to set up a “business hub” in the US to better connect Indonesian suppliers with American buyers. 

Indonesia Trade Attaché to the US Ranitya Kusumadewi said that Washington had been “trying to diversify away from China” amid the major power rivalry. She even called the shift a “golden opportunity” for Indonesia.

Government data showed that Indonesia’s overall exports to the US amounted to $22.4 billion in the first 8 months of 2026. Southeast Asia’s biggest economy saw a $12.5 billion surplus over the said period.

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