However, Andry Satrio Nugroho, Head of the Industry, Trade, and Investment Center at INDEF, considers the additional 32% tariff imposed by the US on Indonesian products to be a serious threat. He criticized the US’s justification for imposing up to 64% tariffs on Indonesian products, arguing that the calculation was flawed. “The method used to calculate the tariffs is erroneous, yet it’s being used as a pretext to exert pressure on Indonesia. This is a blatant form of protectionism,” Andry remarked.

This tariff hike directly impacts Indonesia’s main export sectors, particularly textiles, clothing, and footwear, which contribute about 27.5% of the total exports to the US. Strategic commodities such as palm oil and rubber are also affected. Andry further warned that the high tariffs could threaten millions of jobs dependent on these sectors. “If the government remains passive, we risk losing a key market and facing a much larger wave of layoffs,” he added.

As the global trade environment shifts, Indonesia faces both challenges and opportunities, and its response to these changes could have significant implications for its economy.(Uki Ruknuddin)

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