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US tariffs: Manufacturers urge safeguards imports of rerouted goods
Local manufacturers have highlighted an urgent need for measures to protect the domestic market in anticipation of a potential influx of displaced imports as a result of US tariffs, especially following an unexpected downturn in demand over Idul Fitri.
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Containers are stacked on May 22, 2024, at Tanjung Perak Port in Semarang, Central Java. (Antara/Makna Zaezar)
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usinesses are urging the government to protect the domestic market, warning countries could target Indonesia as an export destination for their products that failed to enter the United States following President Donald Trump’s sweeping tariffs on trading partners.
Manufacturing groups representing the textiles, electronics, footwear, furniture and handicraft sectors urged the government in a meeting on Monday to fast-track import regulations and safeguard measures.
“America is China’s biggest export destination. When that closes, they’ll divert goods elsewhere, and Indonesia emerges as a target due to its large market size,” said Dharma Surjaputra, deputy chair of the Electronics Producers Association (Gabel), as quoted by Kontan.co.id.
Read also: Govt seeks to import more US goods, avoid retaliation on tariffs
Dharma warned that small high-value electronics, such as home appliances and consumer devices, were especially vulnerable. If left unchecked, an influx of imports displaced by US tariffs could erode production capacity and lead to layoffs in Indonesia’s electronics industry, he said.
Textile businesses raised a similar alarm via the Indonesian Textile Association (API) and the Association of Working Convection Entrepreneurs (IPKB), which urged swift action from the government to block redirected textile imports from flooding Southeast Asia’s largest economy.
“What we are most afraid of is that as countries lose access to the US market, they’ll look for new destinations for their goods and Indonesia will be in their crosshairs,” said IPKB chair Nandi Herdiaman, as quoted by Kumparan.
