Indonesia

Amid Geopolitical Turmoil, Indonesian Furniture Industry Targets India and ASEAN Markets

Data from Statistics Indonesia (BPS) shows that furniture exports account for approximately 12.2% of the country's total handicraft exports, highlighting the furniture industry's position as a key driver of Indonesia's creative industry exports.

Currently, the United States is the main market for Indonesian furniture exports, absorbing 58% of the total export value. Meanwhile, the Indonesian furniture industry is exploring other markets. At the Indonesian International Furniture Expo (IFEX) on March 5, the Director of the Agricultural Industry Department at the Indonesian Ministry of Industry emphasized that the furniture industry is currently targeting rapidly growing Asian markets, particularly India and the ASEAN region. The Middle East is also a target market for the country's furniture exports, but due to geopolitical issues, the current focus is on India and ASEAN countries.

Indonesian Homeware Products Secure US$11.07 Million in Potential Deals in the United States

At The Inspired Home Show 2026, held from March 10-12, 2026, at the McCormick Convention Center in Chicago, USA, Indonesian homeware products achieved potential transactions worth US$11.07 million (approximately 182.74 billion Indonesian Rupiah).

The Inspired Home Show is one of the largest homeware exhibitions in the United States, bringing together more than 2,000 brands from around the world.

This year, the Indonesian pavilion featured six participating companies: Aksata Rattan, Canela Home Decorative, PT CMN Internasional Indonesia, PT Inspira Furnexindo, Tanteri Bali, and Tourd'Horizon. Their exhibited products included wooden tableware, home decorations, and rattan crafts.

Indonesian Deputy Minister of Forestry Calls for Transparent and Professional Forestry Governance Reform

On March 16, the Indonesian Ministry of Forestry held a ceremony to commemorate Hari Bakti Rimbawan 2026 in Jakarta, emphasizing efforts to strengthen sustainable forest management and institutional reform.

Deputy Minister of Forestry Rohmat Marzuki presided over the ceremony. He noted that forest management faces increasingly complex challenges, including climate change, forest fires, floods, and landslides. To address this, the Ministry of Forestry will continue to collaborate with various parties to promote the transformation and upgrading of national forestry policies.

Currently, the Ministry is advancing several strategic measures, including strengthening forest protection and environmental law enforcement to prevent illegal exploitation; expanding social forestry programs to enhance the economic capacity of local communities; and stepping up forest and land reclamation efforts alongside watershed restoration to mitigate the impact of hydrometeorological disasters.

The government is also promoting a green forestry economy through environmental services, carbon trading, and diversified forestry initiatives, creating new economic opportunities while protecting ecosystems. Meanwhile, the Ministry is modernizing governance through an integrated, digital forestry data system to improve transparency, accountability, and efficiency.

Indonesian Government Plans to Protect 1.4 Million Hectares of Customary Forests by 2029

At a discussion themed "Indonesian Forests in the Hands of Communities" hosted by Forest Watch Indonesia on March 31, Indonesian Deputy Minister of Forestry Rohmat Marzuki revealed that the government plans to designate 1.4 million hectares of customary forests between 2025 and 2029. This aims to strengthen the role of indigenous communities in sustainable forest management and global climate action.

To date, the Ministry of Forestry has designated 169 customary forest areas across 43 districts and 20 provinces, covering approximately 366,955 hectares and involving around 88,949 families.

To accelerate achieving this target, the Ministry has established a Task Force for the Acceleration of Customary Forests through Ministerial Decree No. 121 of 2026, involving members from various ministries, local governments, academia, and civil society organizations.

Malaysia

New Cargo Loading Regulations for Pickup Trucks in Malaysia Effective April 1

Malaysian Minister of Transport announced that the "Guidelines for the Use of Non-Regulated Vehicles and Pickup Trucks for Cargo" will come into effect from April 1st.

According to the guidelines, cargo vehicles with a maximum laden weight (BDM) not exceeding 7,500 kg are classified as non-regulated vehicles. Owners or companies can use these vehicles to transport goods related to their own business without needing to apply for an operating permit from the Land Public Transport Agency (APAD).

However, if the vehicle is used to transport third-party goods for rent or compensation, it is considered a commercial cargo transport service and must apply for a Category A cargo permit from APAD under the Land Public Transport Act 2010.

According to the regulations, construction materials such as timber are among the goods permitted to be transported by pickup trucks.

Malaysia Plans to Achieve RM32.8 Billion in Timber Exports by 2030

At the opening ceremony of the Malaysian International Furniture Fair (MIFF 2026) on March 4, the Malaysian Ministry of Plantation and Commodities announced that the country plans to increase its export value of timber and timber products to RM32.8 billion by 2030, aiming to further strengthen the national timber industry.

Currently, Malaysia's annual export value of timber and timber products exceeds RM20 billion, with wooden furniture accounting for about 43% of total exports, making it one of the most important market segments for the industry. As global demand for high-quality furniture and sustainable timber products continues to grow, the government plans to enhance the industry's competitiveness through industrial upgrades, market expansion, and strengthened supply chain integration.

To achieve the RM32.8 billion export target, the government is collaborating with several industry bodies, including the Malaysian Timber Industry Board (MTIB), the Malaysian Timber Council (MTC), and the Malaysian Timber Certification Council (MTCC), to promote innovation, sustainable development, and international market expansion.

Malaysia Lowers Allowable Harvesting Area in Permanent Reserved Forests

Malaysian Minister of Natural Resources and Environmental Sustainability stated that the government continues to strengthen its commitment to Sustainable Forest Management (SFM) by setting the Annual Allowable Cut (CTT) in Permanent Reserved Forests (HSK) for the 13th Malaysia Plan (MP13) at an area of 890,000ha, compared to 1,165,300ha during the 12th Malaysia Plan (MP12),

The Minister stated that this adjustment is a strategic move to protect forest ecosystems while maintaining a stable timber supply. Agencies under the Ministry, including the forestry departments of Peninsular Malaysia, Sabah, and Sarawak, are actively promoting forest-based ecotourism as an alternative economic driver. This initiative aims to reduce reliance on traditional logging activities and support the industry's transition towards more sustainable and diversified forest utilization methods.

Sarawak Timber Industry Impacted by Rising Oil Prices

Chairman of the Sarawak Timber Association pointed out that the persistently uncertain global economic environment, particularly the ongoing conflict in the Middle East driving up oil prices and causing energy market volatility, has had a cascading impact on the timber industry.

He stated that the rising cost of diesel directly increases operational burdens in key areas such as logging, transportation, and processing. Some operators have been forced to scale back or even suspend operations, making the industry's recovery prospects worrying.

Amidst continuously rising cost pressures, the association has called on the government to consider providing appropriate support measures, including reviewing timber-related tax rates and surcharges where appropriate, to assist operators in maintaining upstream and downstream operations.

Malaysian Government to Submit Climate Change Bill

The Malaysian Minister of Natural Resources and Environmental Sustainability stated that the federal government expects to submit the National Climate Change Bill (RUUPIN) during the second sitting of Parliament in June this year. The bill aims to establish a unified national legal framework for climate governance, helping the country fulfill its climate commitments under the Paris Agreement.

He said the bill will be closely coordinated with relevant state-level legislations, including the Sabah Climate Change and Carbon Governance Enactment 2025, thus forming a mutually reinforcing legal and policy system and strengthening cooperation between the federal and state governments on climate governance.

The Minister revealed that the Ministry of Natural Resources and Environmental Sustainability is also formulating the National Carbon Market Policy (DPKK) to provide clear direction for carbon market mechanisms, enhancing environmental integrity and investor confidence.

Thailand

Thailand Faces Crude Oil Shortage

Typically, Thailand's average daily crude oil consumption is about 1 million barrels, with 500,000 barrels coming from the Middle East and 500,000 from other sources. Under the current tensions in the Middle East, finding alternative sources to fill the 500,000-barrel gap is not an easy task.

Thailand's Energy Minister stated that for the 500,000-barrel quota from the Middle East, half could be loaded via the Port of Fujairah and transported through the Red Sea from Saudi Arabia. To resolve the remaining shortfall (250,000 barrels), solutions include suspending oil exports for domestic use and supplementing imports from the United States, South Africa, and Malaysia.

Rising Fuel Prices in Thailand Impact Logistics of Wood Chip Processing Plants

In Buriram Province, Thailand, some businesses purchase hardwood and rubberwood from farmers, processing them into wood chips to supply to biomass power plants. However, these businesses are being severely affected by high oil prices.

By the end of March, oil prices had reached as high as 40 Thai Baht per liter. Furthermore, news reports suggested that diesel prices could continue to rise to 50 Thai Baht per liter. Due to rising fuel costs, many trucks transporting wood to factories have ceased operations.

The owner of a wood chip processing plant stated that after a previous fuel shortage crisis, they now face the issue of high fuel prices. If fuel prices rise further, they may have to temporarily suspend operations, which would result in a lack of wood for biomass power plants to generate electricity.

Thai Furniture Exporters Discuss Industry Status Amid Middle East Tensions

Jirachai Tangkijngamwong, Director of Disarn Watana Co., Ltd., stated that the war is causing market sentiment volatility and rising costs, which are harming Thai furniture exporters. Before the war, exporters' main concerns were focused on US tariffs, which were "unfavorable but manageable." The current war has escalated logistics and raw material costs, making it harder for companies to formulate plans and sign long-term contracts.

He stated that the war has caused price volatility, especially in logistics. Insurance premiums and sea freight costs have risen sharply, with transportation costs increasing by 50% to 80%. The Southeast Asian market might be a good option due to its convenient geographical location, which helps keep logistics costs relatively low.

He expects the price of wood stains to increase. Furthermore, the war is creating negative economic sentiment, which will also affect consumer behavior. Many people are postponing furniture purchases, a trend that could appear globally.

He also observed that the Thai furniture industry is increasingly focusing on the domestic market. As numerous boutique hotels and restaurants expand, demand for handmade furniture remains strong.

Thailand Suspends Redefinition of Forest Due to Legal Considerations

On March 17, 2026, the Deputy Spokesperson for the Thai Prime Minister's Office announced the results of a cabinet meeting. The meeting considered a report submitted by the Ministry of Natural Resources and Environment on reforming forestry laws to comply with EU Deforestation Regulation (EUDR).

Lalida pointed out that although the National Human Rights Commission of Thailand recommended amending the definition of "forest" to meet international standards, relevant agencies (Ministry of Natural Resources, Ministry of Commerce, Council of State, Board of Investment) unanimously agreed that it is currently too early to make such amendments. Thai forestry law clearly distinguishes between forest areas and private land, using land title documents as evidence. Therefore, changing the definition could cause legal confusion and widely affect citizens' land ownership rights.

Nevertheless, the government has instructed accelerating the development of a traceability mechanism and raw material origin certification system that meets EU standards to ensure Thai products remain globally competitive. The Council of State recommended that any future legal revisions should be preceded by systematic economic and social impact assessments and thorough consultations with farmers. The government prioritizes global environmental standards but must also consider the livelihoods of Thai farmers.

Thailand Furniture Export Data for Jan-Feb 2026

According to information published on the official website of the Thai Furniture Association, Thailand's total exports of furniture and parts reached US$321 million in January-February 2026, a year-on-year increase of 26.16%, continuing the upward trend from 2025. During the same period, sawnwood exports amounted to US$211 million, up 1.09% year-on-year; medium-density fiberboard exports were US$137 million, down 12.59% year-on-year; and particleboard exports were US$70 million, down 20.95% year-on-year.

China

China's Annual Timber Production Up 36.9% Compared to 2020

According to a report from China Green Times, in 2025, the total output value of the national forest and grassland industry reached nearly 11 trillion RMB, with import and export trade exceeding US$180 billion. China's forest and grassland industry has formed four pillar industries each with an annual output value exceeding one trillion RMB: wood and bamboo processing, economic forests, ecotourism, and the under-forest economy. China has become the world's largest producer, consumer, and trader of major forest products. Currently, the country's annual timber production is 140 million cubic meters, an increase of 36.9% compared to 2020; the output value of wood processing and wood/bamboo product manufacturing is 3.4 trillion RMB; there are tens of thousands of types of wood and bamboo products; and the total value of the custom home furnishing market exceeds 300 billion RMB.

China's Log Imports Data in 2025

In 2025, key data from China's timber market signaled clear weak demand. Data from the National Forestry and Grassland Administration shows that affected by the continued downturn in the real estate sector, Chinese timber buyers continued to scale back purchases. The total apparent consumption of logs for the year fell by 1.3% year-on-year, from 173 million cubic meters the previous year to 170.748 million cubic meters. Simultaneously, domestic timber production failed to grow against the trend, also declining by 1.1% to 139.37 million cubic meters last year. This contraction on both the supply and demand sides corroborates the weak market conditions.

The performance on the import side was even more severe. In 2025, China's log imports fell by 13.1% to 31.38 million cubic meters, marking the fourth consecutive year of decline in log imports. Exports have almost stagnated, plummeting from just over 12,000 cubic meters in 2024 to only 3,680 cubic meters last year.

China's Wood Processing Industry Steadily Improves

Currently, China's forest coverage rate reaches 25.09%, the comprehensive coverage rate of forests and grasslands exceeds 56%, and the total forest stock volume reaches 20.988 billion cubic meters. A new system of protected natural areas has been basically established, with various types of protected areas covering over 18% of the national land area.

As a core sector, the wood processing industry plays an increasingly prominent clustering and driving role. Data shows that the national annual timber production has reached 140 million cubic meters, a 36.9% increase compared to 2020; the output value of wood processing and wood/bamboo product manufacturing is 3.4 trillion RMB; the product range includes tens of thousands of types; and the total value of the custom home furnishing industry exceeds 300 billion RMB.