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Indonesian business groups urge talks with US on tariffs
Indonesia, which enjoyed a $16.8 billion surplus in trade with the United States last year, now faces a steep 32 percent tariff on goods exported to the US market.
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A sales assistant checks on Apple iPhone products put on display at a shop in a mall in South Jakarta, in this file photo taken on Nov. 30, 2024. In the background, the caption on an ad for the new Apple iPhone 16 reads, “Coming soon”. (JP/Tama Salim)
B
usiness groups are urging the government to engage in bilateral talks with the United States to secure access to the world’s largest consumer market after the US administration slapped tariffs of 32 percent on goods imported from Indonesia.
This comes after US President Donald Trump announced additional tariffs on imports from all countries on Wednesday with the aim to reduce the US trade deficit with the rest of the world and boost domestic employment.
Read also: Trump announces 10% tariff on all imports, with higher rates for some countries
Indonesia, which enjoyed a $16.8 billion surplus in trade with the US last year, finds itself on a list of dozens of countries subjected to elevated rates under what the White House calls a “reciprocal” measure.
The business groups suggest that reviewing certain domestic policies that may be perceived as nontariff barriers, such as local content requirements (TKDN), could help convince Washington to undo the harsh tariffs.
Analysts, meanwhile, see the tariff hike as a wake-up call for Indonesia to reassess its trade policies amid shifting global dynamics and to improve the domestic investment climate.
The US imposed a 10 percent baseline tariff on imports from all countries starting April 5. Just four days later, a second round of individual “reciprocal” tariffs will take effect, targeting nations the US has large trade deficits with, including Indonesia.
