JAKARTA – Kadin Institute has welcomed President Prabowo Subianto’s decision to send a negotiation team to the United States in response to the US’s reciprocal export tariff policy on Indonesian goods.

Mulya Amri, Executive Director of Kadin Institute, said the stance taken by the Indonesian government, as well as other ASEAN leaders, in refraining from retaliatory measures against the US was the correct one.

“Not responding with countermeasures to the reciprocal tariff policy is the right approach — what the government has done is appropriate,” he said in Jakarta on Thursday (10/4).

According to him, negotiations over the US tariff policy will be beneficial as they could shield Indonesia from higher tariffs, similar to what China is facing. He noted that mutual tariff escalations between the US and its trade partners could lead to an unending trade conflict.

The Indonesian government is also taking into account US concerns regarding non-tariff barriers in bilateral trade, including import quotas, local content requirements (TKDN), anti-Corruption enforcement, and ease of doing business.

Mulya explained that the import facilitation referenced by President Prabowo Subianto pertains to goods that Indonesia either does not produce or cannot supply in sufficient quantities — for instance, oil and gas, wheat, and soybeans. He added that the easing of local content requirements for technology products remains open to negotiation — particularly for items such as Apple products.

He emphasised that import quota and TKDN adjustments in the context of trade with the US would not weaken the competitiveness of domestic products.

“This is a limited and targeted measure in response to the US’s reciprocal tariff policy,” said Mulya.

In addition, Kadin Institute urged the government to continue refining its business facilitation policies as outlined in the Job Creation Law, particularly through clearer implementation guidelines and field execution.

“This is the right time to resolve outstanding issues,” he said. (LK/ZH)