Judul : Apindo Promotes Strategic Steps to Face 32 Percent US Tariff
link : Apindo Promotes Strategic Steps to Face 32 Percent US Tariff
Apindo Promotes Strategic Steps to Face 32 Percent US Tariff
Indonesian Entrepreneurs Association (Apindo) responded to the 32 percent import duty imposed by the United States (US).
President of Apindo, Shinta W. Kamdani said the government needs to pay attention if these high tariffs are really going to be implemented in Indonesia, then the pressure on the industrial sector will increase.
Moreover, currently the Indonesian manufacturing industry is suffering, as seen from the June 2025 Purchasing Managers Index (PMI) at 46.7, far below the expansion threshold, due to increasing production costs and slowing global demand.
"Pressure on labor-intensive industries with a large export share to the US, such as textiles and textile products (TPT), footwear, furniture, and toys, will increase," Shinta said to Best for You.
According to Shinta's records, Indonesia's exports to the US are only about 10 percent of total exports. While the contribution of exports to GDP is relatively moderate, around 21 percent of total exports.
Thus, the high tariffs imposed by Trump could potentially lead to a decrease in demand for domestic industrial products.
Meanwhile, cheap or illegal goods have the potential to flood the domestic market as well as high operating costs. These three issues, according to Shinta, are real challenges that need to be anticipated together.
Shinta claimed from the beginning of this negotiation, Apindo has been involved and supported the process, including providing various inputs to the government. He then revealed Apindo's proposal to the government in facing this tariff war.
"First, promoting a mutually beneficial scenario through the increase of strategic commodity imports from the US, such as cotton, corn, dairy products, soybeans, and crude oil. This step is designed as a reciprocal arrangement addressing US concerns about the trade deficit," Shinta said.
Next, Apindo also proposed that the government strengthen the market diversification strategy by expanding exports to non-traditional markets. This step is carried out through efforts to optimize efficiency and competitiveness along the supply chain.
"Thirdly, immediately implement regulatory streamlining within the country to promote business ease within the country, as well as strengthen trade remedies within the framework of national industrial protection," he explained.
Nevertheless, Shinta admitted that entrepreneurs are still waiting for an official statement from the government regarding this matter. According to her, the community, including entrepreneurs, needs to provide sufficient space for the ongoing diplomatic process until the deadline for implementing the tariffs, which is August 1, 2025.
"Apindo considers it important to wait for the official statement and position of the Indonesian government to ensure a common basis in dealing with this situation. The implementation deadline of tariffs on August 1st shows that the diplomatic channel remains open and there are still opportunities to reach a constructive agreement," he explained.
He also sees the 32 percent tariff announced by Trump as part of the negotiation dynamics between the Indonesian government and the U.S. Therefore, according to him, Indonesia's success in navigating this issue will greatly depend on a solid, measurable, and long-term interest-oriented economic diplomacy.
Furthermore, Shinta explained that Apindo believes that currently, Indonesia must focus on accelerating the structural reform agenda through a consistent deregulation approach across sectors. This requires cooperation between the government, business actors, and other stakeholders.
"Apindo will also be involved in the government-established task force to identify and address various business obstacles on the ground. With strong diplomatic efforts accompanied by improvements in the domestic business climate, we are confident that Indonesia can overcome these challenges as expected," Shinta concluded.
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