Indonesia’s Furniture Industry Eyes South Africa Amid U.S. Tariffs

ChatGPT bilang: Despite a 19 percent export tariff to the United States, Indonesia’s furniture industry need not linger in worry: a new export destination has opened—South Africa.

Indonesia’s Furniture Industry Eyes South Africa Amid U.S. Tariffs
Indonesian delegation at Decorex Johannesburg 2025, Sandton Convention Centre, Johannesburg, South Africa, July 25, 2025. Source: ITPC Johannesburg (Instagram).

Despite a 19% tariff imposed by the United States, one of its largest markets, Indonesia’s furniture industry is finding new footing in non-traditional destinations, with South Africa emerging as a promising frontier.

At Decorex Johannesburg 2025, Indonesian exhibitors booked potential transactions worth US$520,500 (Rp 8.5 billion), signaling growing appetite for products made from tropical wood and infused with ethnic-modern designs.

Efri Yenni, Head of the Indonesian Trade Promotion Center (ITPC) Johannesburg, called this a strategic step to open markets beyond traditional destinations, especially following the US import-tariff policy.

“Indonesia’s participation in this exhibition is one way to open new markets, expand access, and promote Indonesian products in South Africa. The reciprocal tariffs set by the United States—one of the main markets for Indonesian furniture and home décor—should spur us to seek alternative markets in non-traditional countries,” she said in an official statement (7/8/2025).

Abdul Sobur, Chairman of the Indonesian Furniture and Craft Industry Association (HIMKI) and CEO of Global Kriya Nusantara, likewise sees strong potential in non-traditional markets, particularly South Africa. He welcomed Indonesia’s participation at Decorex Johannesburg 2025, calling it a strategic move. “Overall, Indonesia’s presence was well received, with buyers responding positively to furniture made from tropical wood and our distinctive ethnic-modern designs. We encourage broader participation and concrete follow-up through business-matching,” he told SUAR (8/8/2025).

Photo: Abdul Sobur, Chairman of HIMKI and CEO of Global Kriya Nusantara (Source: Personal archive).

According to Sobur, South Africa could serve as a gateway to Sub-Saharan Africa, supported by a growing middle class and demand for quality furniture for property, hotel, and villa projects.

He acknowledged that exports to South Africa remain small—about 0.1% of Indonesia’s total furniture exports—but remained optimistic that volumes can rise with integrated logistics and stronger promotion.

Mohammad Faisal, an economist at CORE Indonesia, noted that while many African countries are still lower-middle-income, the middle class is expanding, making them promising targets for products such as furniture.

“South Africa is one of Africa’s largest economies, with the highest purchasing power on the continent. For furniture, the market is actually promising,” he told SUAR (August 8, 2025).

Mid-sized firms are already diversifying. CV Surya Java Furnindo, a Jepara-based exporter, has expanded into African markets as part of its strategy to stabilize business, said Johan Lesmana, the company’s producer and exporter.

“There are many new market prospects—our new buyers have come from various countries, including New Caledonia, Lithuania, Libya, and we’ve also shipped to African markets,” he told SUAR (8/8/2025).

Johan explained the company does not specialize by country. Since 2015, it has continuously expanded and avoided relying on only one or two destinations.

This diversification strategy helps maintain export volumes: a Lithuanian buyer can order up to three containers, while a repeat buyer in Germany orders one container every two months.

Tackling Logistics and Regulatory Hurdles

Despite strong potential, Abdul Sobur acknowledges key challenges in entering the South African market. Logistics remain the biggest barrier due to high shipping costs and limited direct routes.

“The main challenges are logistics, import tariffs, and a lack of market information. Shipping costs are quite high because of limited direct lanes,” he said.

He added that South Africa’s technical regulations on product safety and certification also pose obstacles. The scarcity of aggregators or Indonesian representatives in the region further hampers market penetration.

Mohammad Faisal, Executive Director at the Center of Reform on Economics (CORE) Indonesia. Source: Personal archive.

Economist Mohammad Faisal added that Indonesia must pay close attention to price competitiveness against major players—particularly China, which can supply large volumes at very low prices.

“For non-food goods in Africa—especially electronics—many come from China. China can supply in large quantities at very competitive prices; it is the world’s largest manufacturing base,” he said.

He noted that India and several ASEAN countries such as Vietnam are also formidable competitors. Indonesia, he suggested, should compete not only on price but also on quality and product fit to win in the global furniture market.

To address these constraints, HIMKI is exploring collaborative strategies with multiple partners to fill market-information gaps and strengthen Indonesian representation in the region, thereby maximizing new export opportunities in Africa.

Diversifying into South Africa is not merely a way to offset pressure in traditional markets; it opens a new chapter for the growth of Indonesia’s furniture industry on the global stage.