INDONESIAUPDATES.COM, News En – Indonesian furniture and craft businesses are expressing concerns over the reciprocal tariff policy introduced by US President Donald Trump, which could disrupt the performance of the industry.
According to Abdul Sobur, the Chairman of the Indonesian Furniture and Craft Industry Association (HIMKI), the United States is a major export market for Indonesia, with 53% of furniture and craft products from Indonesia being exported to the US.
Impact of the Tariff Policy
The US has imposed a 32% tariff on Indonesian products. This tariff was initially set to be implemented on Wednesday, April 9, 2025, but has been delayed for several months. Abdul Sobur stressed that such a tariff would severely disrupt the national furniture and craft industry, as 53.8% of the industry’s exports go to the US.
“This is a very significant number. If the tariff is applied, it will cause major disruptions,” said Abdul Sobur during a discussion at the Corporate Insight event on Friday, April 11, 2025.
Although the tariff implementation has been postponed, it has already had an impact on the business activities of furniture and craft entrepreneurs. Abdul Sobur revealed that buyers in the US have begun delaying orders for Indonesian products, resulting in an accumulation of goods in warehouses, and causing cash flow problems for Indonesian businesses.
“We are now urging our US buyers to accept the products they have already ordered to avoid further accumulation of goods in our warehouses,” Sobur explained.
Economic Impact of the Delay
Despite the delay in the 32% tariff, the economic impact is still being felt. The uncertainty has caused delays in shipments and led to a backlog in factories.
“The announcement caused unanticipated escalation in the market. There have been delays in shipments, and our factories are now dealing with accumulating goods,” Sobur said, adding that buyers in the US are waiting for stability before moving forward with shipments.
FAQ Indonesian Furniture and Craft Industry Concerned About US Tariff Policy
1. What is the concern of the Indonesian furniture and craft industry regarding the US tariff policy?
The Indonesian furniture and craft industry is concerned that the 32% reciprocal tariff imposed by US President Donald Trump on Indonesian goods could significantly disrupt the industry, which exports 53% of its products to the US.
2. Why is the US a major market for Indonesian furniture and craft products?
The United States is Indonesia’s main export market, receiving over 53% of the country’s furniture and craft exports. This makes the US crucial for the industry’s economic stability and growth.
3. What is the status of the US tariff on Indonesian products?
The 32% tariff on Indonesian products was initially set to be implemented on April 9, 2025, but it has been delayed for several months. Despite the delay, the announcement has already caused disruptions in the industry.
4. How has the tariff delay affected Indonesian businesses?
The tariff delay has caused US buyers to delay orders for Indonesian furniture and crafts, resulting in products being stockpiled in warehouses and delaying cash flow for Indonesian businesses.
5. What actions are being taken by Indonesian businesses to address the issue?
Indonesian producers are urging US buyers to accept their orders quickly to avoid further accumulation of goods in warehouses and alleviate the financial strain caused by the delays.
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