The Indonesian Employers Association (APINDO) has expressed support for the government’s efforts to negotiate a reduction in US import tariffs. However, APINDO Chairwoman Shinta Kamdani emphasized the importance of understanding the broader context of US trade policies, particularly under President Trump’s administration, before entering talks.
“We need to carefully monitor Trump’s approach to trade, especially regarding China,” Shinta said after attending the IBC Business Competitiveness Outlook 2025 event in Jakarta on Monday.
“China is facing high tariffs, and since Indonesia also runs a trade surplus, we need to consider whether we will be impacted as well. This is an important issue for us.”
Shinta acknowledged that Indonesian businesses must be prepared for the protectionist policies that may emerge under Trump. However, she pointed out that Indonesia has faced high US import tariffs in the past and has previously lobbied for tariff relief on specific products.
“During President Trump’s tenure, we began negotiations on a Limited Trade Deal, which aimed at securing favorable tariffs for certain products, such as under the Generalized System of Preferences (GSP) program,” she explained.
Coordinating Minister for Economic Affairs Airlangga Hartarto previously stated that Indonesia intends to seek a reduction in trade tariffs through bilateral cooperation with the US. This strategy is part of a broader effort to mitigate the impact of potential tariff hikes under the incoming Trump administration.
“We are advocating for bilateral economic cooperation to reduce tariffs,” said Airlangga. “One of the avenues we are exploring is a free trade agreement (FTA) between the two countries.”
As Trump is set to be inaugurated as the 47th President of the United States on January 20, 2025, the issue of tariffs on Indonesian exports is not new. Airlangga pointed out that the US already imposes tariffs on certain Indonesian goods, including footwear, clothing, and various commodities. Meanwhile, countries like Vietnam have avoided similar tariff burdens.
“For us, the US imposes tariffs on products like shoes and clothing, while countries like Vietnam are not subjected to the same measures,” Airlangga said. “So, while the issue of US tariffs is ongoing, we are somewhat accustomed to these challenges.”