Industry Association Submits Recommendations for Improving Import Regulations for Furniture Raw Materials

The Indonesian Furniture and Craft Industry Association (Asosiasi Industri Permebelan dan Kerajinan Indonesia– “ ASMINDO ”) submitted several recommendations to the Working Committee (Panitia Kerja– “ Panja ”) on Industrial Competitiveness of Commission VII of the House of Representatives of the Republic of Indonesia (“ DPR RI ”). Various proposed policy changes—particularly regarding the import of raw materials—were encouraged to become discussion points within the Panja.

“The challenge lies in policies related to the import of supporting raw materials. Deregulation and improvements to the business climate are needed, particularly in the area of imports,” said Yogi Anindya, ASMINDO Deputy Chairperson.

Yogi emphasized the need for import tax relief for wood-based raw materials, the reduction of Value Added Tax (“ VAT ”) restitution to one week, simplification of import procedures, and reforms to the Timber Legality Verification System (Sistem Verifikasi Legalitas Kayu– “ SVLK ”).

“The documents related to these imports also still need to be reviewed to determine which ones can be simplified. I think that would make things easier for all of us,” he added.

In addition, diversification and promotion are needed by maintaining traditional markets in the United States and the European Union through the utilization of existing trade agreements, as well as expanding into non-traditional markets. To enhance competitiveness in export markets, Yogi stated that regulations are needed to support the absorption of products in the domestic market and to eradicate illegal imports.