Economy

Indonesia’s furniture exporters fear EU deforestation rules – Economy


urniture exports have already been impacted by the European Union’s forthcoming deforestation regulation, which is scheduled to go into effect early next year, according to industry insiders.

Abdul Sobur, chairman of the Association of Furniture and Craft Industries of Indonesia (HIMKI), said the certification required by the regulation was costly for smaller businesses.

“Eighty-five percent of the businesses in our sector are MSMEs [micro, small and medium enterprises] and are not accustomed to complex documentation,” Abdul told The Jakarta Post on Wednesday.

The EU’s regulation 2023/1115 on deforestation-free products (EUDR) stipulates that “any operator or trader who places [commodities that could contribute to deforestation] on the EU market, or exports from it, must be able to prove that the products do not originate from recently deforested land or have contributed to forest degradation,” according to the European Commission.

The explanation on the commission’s website cites “cattle, wood, cocoa, soy, palm oil, coffee, rubber and some of their derived products, such as leather, chocolate, tires or furniture,” as examples of such products.

[RA: Jokowi wants RI furniture makers to claw back global market share: /business/2023/09/14/jokowi-wants-ri-furniture-makers-to-claw-back-global-market-share.html]

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Indonesian manufacturers of wooden furniture will need to adhere to the standards set forth in the regulation to guarantee their products are from deforestation-free supply chains.



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