JAKARTA – Anindya Bakrie, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), has acknowledged the potential for significant impact from the United States’ plan to impose 32% import tariffs on Indonesian goods.

Previously, US tariffs on Indonesian imports stood at just 10%, affecting products such as electrical equipment and footwear.

“If the US proceeds with the 32% import tariff plan for Indonesian goods, there will be a significant impact on the balance of payments, particularly on the trade balance and investment flows,” Anindya stated in an official release, quoted by Kontan on Friday (4 April).

It is worth noting that the US remains Indonesia’s largest contributor to trade surplus, which reached USD 16.8 billion in 2024.

This, Anindya emphasised, highlights the urgent need for trade tariff negotiations between the Indonesian and US governments, especially regarding labour-intensive economic sectors that are more vulnerable to external shocks.

According to the official website of Indonesia’s Ministry of Foreign Affairs, the Indonesian government plans to dispatch an economic diplomacy envoy to negotiate with the US government regarding the proposed tariffs.

On the other hand, he also urged Indonesia to begin diversifying its trading partners beyond ASEAN and the Asia-Pacific. “These include Central Asia, Turkey and Europe, as well as Africa and Latin America,” Anindya said. (ZH)