Legislature encourages government negotiable Trump new rate: Ask for exceptions

Jakarta – Member of the House of Representatives Commission XI of Democratic Faction, Marwan Cik Asan, urged the government to take immediately steps to expect the impact of US President Donald Trump’s policy, the value of new rates to the US increased against Indonesia. Marwan proposed the Indonesian government to ask for an exception to Trump. “We encourage the government to immediately predict the impact of this tariff war, as well as find solutions to expect the impact of this tariff war,” Marwan told reporters on Thursday (3/4/2025). He acknowledged that Trump’s policy has caused concern for the Indonesian economy because it could affect the Rupiah exchange rate, gold price and a US trade balance. In addition, he says, different large Indonesia’s export products, such as electric machines and equipment, garments, fat and vegetable oils, shoes and aquatic animal products, may experience competitiveness due to increased import tariffs in the US market. Browse to continue with the content “This tariff increase will cause the price of goods from Indonesia to be more expensive in the US market, which has the potential to reduce the competitiveness of these products,” Marwan said. “In fact, the processing industry, which depends on exports, takes up about 13.28 percent of Indonesian workers in 2023, so that the impact of this policy can be felt by millions of workers in the sector,” he continued. Although the direct impact on Indonesia is probably not as large as other countries, according to Marwan, there is still a possible indirect impact that should also be considered. “As the export of Indonesia’s most important trading partner countries such as China and Japan drop to the US as a result of these policies, their demand for Indonesian products may also fall. It is at risk of hindering the growth of the domestic industrial sector dependent on the global supply chain,” the secretary of the Democratic Parliament added. He also suggested that the government has taken strategic steps to reduce the negative impact of US reciprocal tariff policy. One of them, diversifying the export market, reduces US dependence by expanding trade relations with other countries. In addition, Marwan said, free trade agreements with potential countries could be one solution to secure alternative markets for Indonesian export products. In addition, he can continue, tax and subsidized incentive policies are given to the industries concerned to increase competitiveness and maintain the stability of the manufacturing sector. “In the bilateral forum, the Indonesian government can also negotiate with the US to get an exception to rates for various main export products or update the general system of preferences (GSP) to maintain special access to the US market,” he said. Marwan added that the risks arising from Trump’s policy can still be managed with appropriate mitigation steps, despite bringing new challenges to the Indonesian economy. “With an approach that includes market diversification, adaptable fiscal and monetary policy and proactive trading diplomacy, I am sure that Indonesia can maintain economic stability and maintain growth amid increasingly complicated global trade dynamics,” added. Previously, Donald Trump announced a new rate of 10% at almost all imported goods entered by the US. In addition, Trump applies a ‘reciprocal rate’ to a number of countries, including Indonesia. “That’s the statement of our economic independence,” Trump said as he announced these new steps. The president said the US would use the money generated from rates to “reduce taxes and pay our national debt.” Trump then lifted a big map entitled ‘Realipper Cates’. The graph raised by Trump has three columns. The first column is a list of countries. Then the second column is the amount of the tariff charged by a country against the US goods. While the third column contains an answer rate charged by the US. The graph contains a 10% tariff for imports from the UK and 20% for importing the European Union. Indonesia appears on the tariff list. It was said that Indonesia applied a 64% rate to goods from the US. The US will then charge a tariff of 32% of Indonesian goods sold in the US. (MAA/IMK) HOEGENG Awards 2025 Read the inspiring story of the exemplary police candidate here