Indonesia failed to take advantage of trade war and expand market share on U.S. furniture imports

Indonesian furniture producers are unable to take advantage of the trade war between the U.S. and China and expand market share in the U.S.. Based on data from the Indonesian Centre for Reform of Economics (CORE) in April 2018, when the U.S. Government began imposing tariffs on Chinese products, the furniture market share of China in the US was 48 per cent, while Vietnam’s was 7.4 per cent and Indonesia’s 1.63 per cent, according to ITTS TTM Report.

A year later China’s market share fell to 46 per cent, while Vietnam’s rose to 10.5 per cent but Indonesia’s share did not change much, rising to only 1.65 per cent. Mohammad Faisal, Executive Director of CORE Indonesia said that Indonesia has adequate raw materials so it should have taken advantage of the market opportunity in the U.S.. However, as he pointed out, there are several reasons why domestic furniture products failed to capture more of the market from China, one of which that Indonesian exporters lack ability to identify market preferences and lack skills to innovate.