Amid rising concerns over the U.S. reciprocal tariff policy targeting Indonesian goods, the Indonesian Handicraft Exporters and Producers Association (ASEPHI) held a leadership meeting on Monday, April 28, 2025, to address the impact of international trade dynamics on the country’s labor-intensive creative sector.

Attended by representatives from 23 provinces, the meeting featured key figures including Ari Satria, Director of Creative and Service Export Development at the Trade Ministry, and former Manpower Minister Abdul Latief, who is also a member of ASEPHI’s advisory board.

Ari Satria briefed attendees on the Indonesian government’s ongoing negotiations with the United States.

“We are aiming for a reduction of up to 10 percent from the current 32 percent tariff imposed on Indonesian craft exports,” he said, emphasizing the importance of balancing the trade relationship between the two countries.

ASEPHI Chairman Muchsin Ridjan highlighted the need for the creative industry, especially crafts, textiles, footwear, and home décor, which have a strong export presence in the U.S. market to adapt to digital technology and global challenges.

“We must remain relevant and proactive in addressing global trade shifts, especially new U.S. import tariffs,” he said.

The leadership meeting also covered organizational updates and preparations for the upcoming INACRAFT October Vol. 4 Exhibition, themed “Youth: Craft, Culture, Future.”

Discussions underscored ASEPHI’s role as the only recognized export association for creative products by the Ministry of Trade and its commitment to supporting labor-intensive sectors through innovation and market expansion.

One of the key outcomes was a renewed export target of over US$1 billion in the craft sector, achieved through stronger synergy between ASEPHI and the Trade Ministry.

Strategies include leveraging design support through the Indonesia Design Development Center (IDDC), business matching with potential buyers, and tapping niche markets, such as Japan and Central Asia.

Global appreciation

Speaking on behalf of ASEPHI’s international cooperation division, Baby Jurmawati, who also represents Indonesia in the World Craft Council (WCC), said there is growing global appreciation for Indonesian fashion and traditional textiles.

“Our fabrics and embroidery leave WCC members −many of them textile experts − in awe. Indonesian wooden carvings and accessories also attract high interest, but awareness is still lacking,” she said.

She emphasized that Central Asia, including countries like Turkmenistan and Kazakhstan, offers promising new markets due to cultural similarities and textile heritage shared with Indonesia.

“Tenun ikat (hand-woven fabrics), for instance, is something they deeply relate to. We are currently receiving invitations from countries like Turkiye to facilitate artisan collaboration,” she added.

Challenges and creativity

On the subject of trade barriers, Baby struck a confident tone. “Within the World Craft Council, we never really talk about tariffs. For us, creating is continuous. Challenges inspire creativity, and we see obstacles as invitations to innovate,” she said.

ASEPHI leaders reiterated their call for increased promotion of Indonesian craft products, noting that many markets remain unaware of the richness of Indonesia’s artisanal heritage.

While U.S. tariffs remain a concern, the association views global engagement, digital transformation, and government synergy as the way forward.