‘The Indonesian government will take strategic steps to mitigate the negative impact on Indonesia's national economy,’ the Indonesian Ministry of Foreign Affairs said in a press statement received in Jakarta on Thursday (3/4/2035).
Indonesia recognises that the imposition of US ‘reciprocal tariffs’ will have a significant impact on the competitiveness of Indonesian exports to the US, which have so far been dominated by electronic products, textiles and textile products, footwear, palm oil, rubber, furniture, shrimp and marine fishery products.
‘The Indonesian government will immediately calculate the impact of US tariffs on these sectors and the Indonesian economy as a whole,’ the statement said.
According to the statement, the Indonesian government has been preparing various measures since the beginning of this year to deal with the implementation of reciprocal US tariffs and is continuing to negotiate with the US.
Teams across ministries and agencies, Indonesian representatives in the US, and national business actors are also continuing to coordinate intensively in preparation for these US import tariffs.
President Prabowo Subianto has also instructed the Red and White Cabinet to take strategic steps and structural improvements, as well as deregulation policies and the elimination of regulations that hinder, especially related to non-tariff barriers.
This is to increase business confidence and maintain investment.
Amid increasingly dynamic global financial market turmoil following President Donald Trump's announcement of reciprocal tariffs on the US, Indonesia is committed to maintaining the stability of Government Securities (SBN) yields.
Indonesia will also continue to maintain the stability of the rupiah exchange rate and ensure that foreign exchange liquidity is maintained so that it can continue to support the needs of national business actors and maintain overall economic stability, according to a press statement from the Indonesian Ministry of Foreign Affairs.
US President Donald Trump on Wednesday (2/4/2025) announced the imposition of import tariffs on almost all countries that export their products to the US, including its trading partner countries.
Trump decided that Indonesia would be subject to a ‘reciprocal tariff’ of 32 percent on imports from a tariff base of 10 percent levied by the US on all countries under these latest tariff rules. The US accuses Indonesia of levying tariffs on its products of 64 percent.
The 10 percent base tariff takes effect on 5 April. Meanwhile, the US ‘reciprocal tariff’ will take effect on 9 April.