Jakarta — The United States’ (US) imposition of a 19% import tariff presents a strategic opportunity for Indonesian export commodities to become more competitive in the global market. This policy has been positively responded to by businesses and the Indonesian government, as it serves as an opportunity to strengthen the quality of local products and expand export market networks.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that despite the 19 percent tariff, Indonesian commodities entering the US are still competitive. Indonesia’s mainstay products remain textiles, footwear, furniture, and household electronics.
“We will continue to promote textiles and textile products. We will also discuss furniture, shoes, and apparel. We also have products like manufactured goods. Electronic home appliances can still be imported at a certain price,” said Airlangga.
Airlangga revealed that the import tariffs set by the US on Indonesia tend to be lower than those imposed on neighboring countries, such as Thailand, Vietnam, Cambodia, and Malaysia.
In addition, US tariffs on Indonesia also tend to be lower than those imposed by competing countries in the labor-intensive textile industry sector, namely Bangladesh, India, and Sri Lanka.
“Compared to competitors in the textile industry, we also see textile products from countries like Bangladesh (35%), Sri Lanka (30%), Pakistan (29%), and India (20%),” he concluded.
Meanwhile, Minister of Industry Agus Gumiwang Kartasasmita said the US import tariff reduction agreement to 19 percent could boost the competitiveness of domestic manufactured products in the export market.
“The US decision to lower or adjust tariffs on a number of Indonesian manufactured export commodities will increase the competitiveness of our products in their markets. This will have a direct impact on industry, particularly utilization, job creation, and strengthening the national industrial structure,” Agus said.
The Minister of Industry is optimistic that the announcement of the US import tariff agreement will stimulate industry to increase production utilization, especially in labor-intensive, export-oriented industries.
“Of course, this will increase employment even more widely in labor-intensive industries such as textiles, textile products, ready-to-wear clothing, footwear, and others,” Agus said.
Full support from the government and industry players is expected to maintain this positive momentum, ensuring stronger and more sustainable Indonesian exports. This opportunity also strengthens Indonesia’s position as a major player in the competitive global market.