Jakarta – The new import tariff policy from United States President Donald Trump is back in the spotlight. Additional tariffs of up to 32 percent on various products, including textiles from Indonesia, are considered to have the potential to disrupt the stability of national exports.
However, Indonesia did not remain silent. Several parties from industry players to government figures expressed support for the negotiation steps being prepared by the government.
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The Indonesian Textile Association (API) through its General Chair, Jemmy Kartiwa Sastraatmaja, expressed concern over the impact of this policy on the competitiveness of Indonesian textile products. In his statement, Jemmy encouraged the government to immediately take diplomatic initiatives.
“We urge the government to form a negotiating team and open direct communication with the US government,” he said.
He also suggested concrete steps in the form of increasing cotton imports from the US. Currently, cotton imports from Uncle Sam’s country only meet about 17 percent of national needs.
“If it can be increased to 50-60 percent, the trade deficit can be reduced, and that could be a strong reason in negotiating tariff relief,” he added.
From the government side, full support for the diplomatic approach came from Luhut Binsar Pandjaitan, who now serves as Chairman of the National Economic Council of the Republic of Indonesia. Luhut emphasized the importance of avoiding a confrontational approach to President Trump’s policies.
“Don’t fight it, let’s face it with a cool head and negotiation strategy,” he stressed.
He said the government would soon send a special team to the United States to open a direct dialogue channel. According to Luhut, the economic strategy prepared by the National Economic Council aims to minimize the impact of tariffs while strengthening the competitiveness of Indonesian exports in the global market.
“Indonesia still has a strong bargaining position,” he said.
Support for the negotiation approach also came from the business community. Sofyan A. Djalil, who is now the Chief Executive Officer (CEO) of the Indonesian Business Council (IBC), assessed that bilateral cooperation between Indonesia and the US needs to be reviewed to be fairer.
He also encouraged the government to actively build regional solidarity through ASEAN to strengthen its bargaining position on the global stage.
The synergy between business actors and the government shows that Indonesia is ready to face global challenges with a measured and intelligent strategy. Instead of being depressed, this tariff challenge can be a momentum to strengthen economic diplomacy and improve Indonesia’s bargaining position in international trade.
