Car And Motorcycle Equipment Entrepreneurs Express Concerns Over Trump's Import Tariff Policy

Responding to the 32 percent import tariff policy imposed by the United States on products from Indonesia, the Association of Automobile and Motor Equipment Industries (GIAMM) expressed concern over the impact of the policy on the national automotive component industry.

GIAMM assesses the need for strategic steps by the government in responding to this situation.

Secretary General of GIAMM Rachmat Basuki said that the export of Indonesian automotive components to the United States currently occupies the second largest position after Japan.

"This certainly has a big impact on our industry, because previously the entry rate to the US was relatively small. Meanwhile, American products entering Indonesia were subject to a much higher tariff," Basuki said in a statement to the media, Monday, April 7.

GIAMM proposes a reciprocal or reciprocal tariff approach as a fairer short-term solution.

If they charge a high tariff, we also need to adjust. The tariff is replied to by the tariff. But also don't forget other options such as lowering the tariff for US products so that there is a balance," continued Basuki.

In addition, GIAMM also highlighted the potential for flooding of automotive component products from China to the Indonesian market due to American trade policy towards China. Cheap products from China, especially for aftermarket needs, are feared to weaken the competitiveness of local products.

As a solution, GIAMM encourages the application of non-tariff barriers such as the Domestic Component Level (TKDN) and the Indonesian National Standard (SNI) policies to protect the national industry from the collision of quality and price uncompetitive imported goods.

"Despite the challenges, we remain optimistic. The American market is still open. As long as the rates imposed on China are no lower than ours, domestic producers still have the opportunity to compete," he continued.

GIAMM also invites the government to continue to strengthen trade diplomacy with partner countries and ensure that the national industry gets adequate protection, so that it can continue to grow and contribute to the Indonesian economy.