Glembert
KN. Indonesia’s 10 percent additional U.S. tariff gives Indonesian exports a relative advantage over products from Vietnam, Thailand, and the Philippines, which face higher rates, but business groups say the bigger concern is uncertainty over future U.S. trade policies.
Erwin Aksa, Deputy Chairman for Organization, Communication at the Indonesian Chamber of Commerce and Industry (KADIN), stated that the uncertainty regarding U.S. tariffs raises several risks for the industry, ranging from the potential cancellation or postponement of export contracts and difficulties in setting long-term selling prices for U.S. buyers, to increased financing costs driven by heightened business risk.
Trade Ministry’s Director General for International Trade Negotiations, Johni Martha, said the government is continuing intensive talks with the U.S. to secure the best possible tariff treatment, noting that Indonesia’s additional 10 percent tariff is the lowest among several countries following a Section 301 investigation into forced-labor-related imports. He added that the government is also strengthening export competitiveness through product and market diversification, expanded market access through trade agreements, and support for businesses.
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