DPR Leaders Optimistic Indonesia Can Face Trump's 32 Percent Tariff

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DPR Leaders Optimistic Indonesia Can Face Trump's 32 Percent Tariff

Jakarta, IDN Times - Adies Kadir, the Deputy Speaker of the People's Representative Council (DPR) of Indonesia, responded to the policy of US President Donald Trump, who insisted on imposing an import tariff of 32 percent on products from Indonesia. According to him, this decision is a new challenge for the national economy, especially amid uncertain global conditions.

Nevertheless, he is optimistic that Indonesia can overcome this Trump tariff issue. Considering that Indonesia is one of the countries that successfully recovered after the COVID-19 pandemic.

"It is indeed a challenge for our country, and we know that after the BRICS summit, Mr. Airlangga (Economic Coordinating Minister) was also sent to America, possibly for negotiations, but as we know, the previous experiences in dealing with the very severe COVID-19 pandemic, our country has gone through it well," said Adies in his statement at the Parliament Complex, Senayan, Central Jakarta, Tuesday (7/8/2025).

1. The Importance of the National Economic Foundation

Adies emphasizes the importance of strengthening the national economic foundation to face global economic fluctuations. He hopes the government can develop a solid financial strategy to anticipate the impacts of increasingly complex international trade policies.

"Indeed, Allah willing, the foundation of our country must be properly arranged in front, on how to formulate financial strategies to face this increasingly uncertain global economy," he said.

She also assessed that the government, including the Ministry of Finance and stakeholders, has made various efforts in responding to the latest policies of the United States. Adies hopes Indonesia can resume negotiations with the US.

"And we also know that the Minister of Finance, all related stakeholders are also making efforts, so that what is done by the US government, which we hear today is a 10 percent threat, but today it has been set at 32 percent for Indonesia. Hopefully we can go through this well, and there are negotiations between Indonesia and the United States," he said.

2. Entrepreneurs urge the government to negotiate with Trump to cut the 32% tariff

The Deputy Chairman of the Trade Sector of the Indonesian Textile Association (API), Anne P. Sutanto, is waiting for the government's efforts to continue negotiations with Trump regarding the imposition of these tariffs. Moreover, currently, the Indonesian negotiation team led by the Minister of Coordination for Economic Affairs, Airlangga Hartarto, is in the United States for negotiations.

"Let's wait for the results of the Indonesian government's journey regarding this," said Anne when contacted. IDN Times , Tuesday (7/8/2025).

Anne emphasized the letter written by Trump to President Prabowo Subianto. In the letter, Trump said he would consider adjusting tariffs if the government opened the Indonesian market to some American products that have been closed so far, and removed trade barriers against American products.

That effort is considered to show that the US views Indonesia as a good and fair trade partner.

"According to me, the US will consider Indonesia as a good and fair trade partner," said Anne.

3. The government is said to still have time for negotiations

Separately contacted, the Deputy Chairman of the Indonesian Footwear Association (Aprisindo), Budiarto Tjandra, said the government still has time to negotiate with Trump before the 32 percent tariff is implemented.

"Hopefully the Indonesian government can still negotiate until August 1st to get the best outcome," said Budiarto when contacted. IDN Times .

Aprisindo hopes that the 32 percent tariff can be reduced because the US is the main export destination for shoe or footwear products.

"This is the main export destination of Indonesia's shoe industry, about 35 percent of our exports go to the US. Therefore, this US export is very important for our footwear industry," said Budiarto.

Apindo: High US Tariffs Could Hinder Exports and Labor-Intensive Sectors


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