Govt prepares strategic adjustment, product diversification for U.S. tariff changes
Published on 18/02/2025 GMT+7 Reading time 2 minutes
The Indonesian government is taking measures to anticipate any potential impact of the U.S. policy in increasing tariffs on imported goods, focusing on adjustment tailored to maintain and increase the competitiveness of the national economy.
Minister of Investment and Downstreaming/Head of Investment Coordinating Board (BKPM), Rosan P. Roeslan, believes that by making adjustments, the government's desire to create quality jobs in Indonesia can be realized.
“To face the U.S. trade tariffs change, Indonesia must become more pro-active in attracting investor interest, considering that countries in the Southeast Asian region are also doing the same thing,” Rosan said in Jakarta on February 10, 2025.
Previously, U.S. President Donald Trump announced his plan to apply a 25 percent tariff on all imported steel and aluminum commodities.
Trump has also threatened to impose a 100 percent import duty on goods from BRICS countries, which would further escalate geopolitical tensions and disrupt global supply chains.
Meanwhile, the Indonesian government is also working on strategies, such as product diversification anticipating the potential impact of future policies from President Trump.
Budi Santoso, Indonesian Minister of Trade, also underlined the need for domestic business actors to diversify their export products in the wake of Trump's decision to levy higher duties on goods imported from Canada, Mexico and China.
Budi also highlighted the significance of the U.S. market, saying the country remains one of the largest contributors to Indonesia's trade surplus, valued at US$16.84 billion (Rp274 trillion).
The minister also informed that Indonesia business players are in discussion to encourage them to support the diversification drive to maintain Indonesia's trade surplus with the U.S.
He also assured that Indonesia is well-prepared to face the trade war between the U.S. and China, along with any likely spillover effects.
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