Indonesia's weakening rupiah pressures furniture sector while boosting tourism

Indonesia's slide in the rupiah is prompting caution in the furniture and craft industry. Abdul Sobur, chair of the Indonesian Furniture and Craft Industry Association (HIMKI), said the weaker currency, higher raw‑material costs and slower global demand could strain a sector that employs millions. Companies are holding back expansion, cutting overtime and tightening cash flow, with layoffs seen as a last resort if the downturn persists. Sobur highlighted the need for an integrated ecosystem such as the Indowood and IFEX exhibitions to raise competitiveness.

At the same time, the Ministry of Tourism argues the same currency weakness makes Indonesia a more attractive value‑for‑money destination for overseas visitors. Deputy Marketing Director Ni Made Ayu Marthini noted rising tourist arrivals from Singapore, Malaysia, China and South Korea, with guests spreading beyond Bali to places like Labuan Bajo, Lombok and Manado. The weaker rupiah also lifts tourists’ spending power, though property developers are slowing new projects amid the exchange‑rate pressure.