Govt’ Prepares Furniture Export Incentives

The government plans to provide incentives for exporters of furniture products to encourage exports, especially to the US, after China stopped to export to the US as the trade war bites. President Joko Widodo has asked relevant ministers to discuss these incentives so that Indonesia to catch up the wide-open opportunity.

The government would immediately slash value-added tax (VAT) rate on logs for furniture products raw materials. Currently, woods are subject to ten percent VAT. That way, the price of domestic furniture products could be lower and more competitive. The government would also review the obligations of the Timber Verification and Legality System (SVLK) for exports of timber and its derivatives such as furniture.