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Arrange Industry Players' Strategy To Face Trump's Tariff Policy

The reciprocal tariff policy implemented by US President Donald Trump threatens the stability of Indonesia's manufacturing sector. The Indonesian government stated that it will continue to monitor developments and take the necessary steps to protect national interests and maintain the resilience of the domestic economy. Coordinating Minister for Economic Affairs Airlangga Hartarto will also summon industry players to discuss US President Donald Trump's reciprocal tariff today, Monday (7/4/2025). Airlangga said that the meeting was a forum for business actors who wanted to provide input to the government regarding the US policy. 

"All industries will be invited to get input related to their exports and also related to things that we need to maintain, especially the labor-intensive sector," said Airlangga in a written statement, Sunday (6/4/2025). He added that input from business actors would be part of the process of formulating a policy strategy in responding to the reciprocal tariff. 

"Because this is still dynamic and still needs a working group to continue working," he added. Meanwhile, Airlangga revealed that until now his party has continued to communicate intensively with related parties to respond to Trump's policy. Several parties, starting from the United States Trade Representative (USTR), the US Chamber of Commerce, to other partner countries. Meanwhile, Airlangga admitted that his party had been given a deadline to determine Indonesia's steps regarding US policy until Wednesday (9/4/2025). "We were given a very short time, namely April 9, asked to respond. Indonesia prepared an action plan by considering several things, including imports and investment from the United States," said Airlangga. In Bisnis' records, the US has been Indonesia's main trading partner for the past few decades. One of the export destination countries. Manufactured products to wood products flow there. As a result, the RI-US trade balance has always been in surplus for the past 4 years. BPS noted that in 2021, the trade balance surplus between Indonesia and the US reached US$14.5 billion. In 2022, there was a spike in the surplus to US$16.5 billion. However, in 2023, Indonesia's trade surplus with the US shrank to US$11.9 billion. In 2024, data up to December, Indonesia's non-oil and gas exports to the US were recorded at US$26.3 billion. Meanwhile, non-oil and gas imports from the US were only at US$9.6 billion. Indonesia's trade surplus with the US reached around US$16.85 billion. Meanwhile, referring to data from the United States Trade Representative (USTR), trade in goods between the US and Indonesia is estimated to reach $38.3 billion in 2024. US exports of goods to Indonesia in 2024 amounted to US$10.2 billion, up 3.7% (US$364 million) from 2023. US imports of goods from Indonesia reached US$28.1 billion in 2024, up 4.8% (US$1.3 billion) from 2023. The US goods trade deficit with Indonesia was US$17.9 billion in 2024, up 5.4% (US$923 million) from 2023. As a result, the imposition of a 32% reciprocal tariff on Indonesia clearly threatens the Indonesia-US trade balance which has recently continued to increase. 

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Tag: Donald Trump Indonesian Government Tariff Policy