JAKARTA, RAKYAT NEWS – Indonesian business leaders have expressed concerns that the country could face a flood of Chinese imports due to the United States’ increased tariffs on Chinese goods. The worry is that China may redirect its exports to countries like Indonesia, potentially leading to a surge of cheaper goods flooding the market. However, the direct impact of the new US tariff policies on Indonesia is expected to be relatively small.

Yukki Nugrahawan Hanafi, Chairman of the ALFI Institute and head of the Indonesian Logistics and Forwarders Association (ALFI), stated that although Indonesia has a trade surplus with the US, the impact of the new tariff policies would be minimal at first. Still, he warned both the government and business sector to be cautious of potential ripple effects, including possible tariff hikes. “There’s a risk that Chinese goods, with much more competitive prices, could flood the Indonesian market,” he told Katadata.

Interestingly, he believes the increased US tariffs on Southeast Asian countries, particularly Vietnam, could have a positive impact on Indonesia. With supply chains shifting away from Vietnam due to higher tariffs, Indonesia could position itself as an alternative investment and production hub. Products like electronics, textiles, footwear, and furniture, which are commonly exported by Vietnam, are most likely to be affected. This shift presents an opportunity for Indonesia to strengthen its position as a more competitive and efficient supply chain center.

Yukki urged the government to act quickly by improving the ease of doing business, streamlining licensing procedures, enhancing logistics and infrastructure efficiency, and creating a more conducive business climate. These actions could help Indonesia capture opportunities arising from the relocation of businesses from countries hit by higher US tariffs, including Vietnam, Laos, Cambodia, and Thailand.

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