This move is part of a broader effort to reduce the overall tariff burden on Indonesian businesses. The government will also introduce administrative reforms in taxation and customs, which are expected to cut an additional 2% from the tariff burden. These reforms will simplify procedures and reduce the costs of compliance, easing the impact of tariffs on businesses.

Moreover, the government plans to lower the import income tax (PPh) on imported goods from 2.5% to 0.5%. This adjustment is expected to lower the additional tariff burden by another 2%, helping to further reduce the financial strain on companies affected by the U.S. tariffs.

In a further move to balance trade relations, the government will also adjust the import duties on products from the U.S. that fall under the Most Favored Nation (MFN) category. These products, which currently face import tariffs ranging from 5% to 10%, will see a reduction to between 0% and 5%, further reducing costs for U.S. imports.

Sri Mulyani emphasized that these steps are part of a comprehensive strategy to protect Indonesian exports and businesses while navigating a challenging global trade environment. The government is committed to ensuring that Indonesian industries remain resilient in the face of external pressures, especially with the ongoing trade tariff war involving major global economies.

These tariff adjustments and reforms mark a significant shift in Indonesia’s trade policy as the government works to bolster its economy in the face of mounting international trade challenges. With these new measures, Indonesia hopes to shield its key industries, including the palm oil sector, from the negative impacts of rising global trade barriers. (Uki Ruknuddin)

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