Jakarta – The latest reciprocal tariff policy implemented by United States (US) President Donald Trump against a number of countries, including Indonesia, is considered not merely pressure, but a momentum to strengthen national economic unity and independence. Starting April 2, 2025, the US will impose a base tariff of 10 percent plus an additional 32 percent on products from Indonesia. Amidst global trade challenges, this policy is seen as a strategic opportunity for Indonesia to unite in strengthening competitiveness and expanding markets in leading domestic sectors.
The 10th and 12th Vice President of the Republic of Indonesia, Jusuf Kalla (JK), stated that the import tariff policy implemented by Trump would not result in layoffs in the manufacturing industry.
JK said that Trump’s import tariff policy, with a tariff of 32 percent, would only affect the manufacturing industry by 10 percent of the selling price.
“So it’s only about 10 percent of the price. Shoe or clothing factories are only hit by 10 percent, and workers’ salaries don’t increase either, so who do you think will be laid off?”
Trimegah Sekuritas Indonesia Chief Economist Fakhrul Fulvian said that the Indonesian government should not rush to take retaliatory measures against the policy. “Bilateral negotiations between countries regarding trade are the next thing to do,” Fakhrul said in an official statement quoted on Sunday, April 6, 2025.
According to him, this tariff policy is part of the “carrot and stick” approach often used by the Trump administration. This means that tariffs are only a way to start more intensive trade negotiations. He also highlighted that the world is now starting to shift from a multilateral system to a bilateral approach in economic cooperation between countries.
Fakhrul assessed that behind the pressure, there is a special opportunity for Indonesia to strengthen exports in sectors such as textiles, footwear, furniture, automotive components, and nickel. “The challenge of this trade war could actually open up new markets in the US that were previously difficult to penetrate,” he said.
However, he reminded that there is no longer a purely rule-based trade deal with the US. Therefore, more careful and active economic diplomacy is needed. “Indonesia’s economic diplomats must be skilled in negotiating. The role of the Ministry of Foreign Affairs will be increasingly crucial,” Fakhrul emphasized.
Closing his statement, Fakhrul responded to the impact of this policy on the capital market. He said the decline in the stock index in recent times was a natural reaction. “Investors need not be afraid. Because 80 percent of this situation has been ‘priced in’ in the market. Now is a good time to start looking at opportunities from the stock market that has been corrected,” he concluded.
