Trump's Tariff Threatens Exports, HKTI DPN Chairman Fadli Zon Supports Government To Protect Farmers

JAKARTA The General Chairperson of the National Leadership Council of the Indonesian Farmers Harmony Association (DPN HKTI), Fadli Zon, expressed full support for the government in dealing with the "Tarif Trump" policy which is considered to be detrimental to farmers and small and medium enterprises (SMEs) in the food sector. This was conveyed in the HKTI policy briefing on economic infrastructure with President Prabowo.

"We support the government's move to deal with the United States tariff policy. Our main focus is to maintain the economic resilience of food farmers and SMEs," said Fadli Zon in a written statement received Wednesday, April 9.

Fadli emphasized that HKTI encourages the government to intensify international trade diplomacy while expanding the export market. "Trade diplomacy must prioritize the principle of trade for development so that farmers' welfare remains a priority," he said.

DPN HKTI also supports the acceleration of free nutritious food programs and social assistance. According to HKTI, these two programs can increase people's purchasing power while supporting agricultural productivity. To support sustainability, HKTI encourages the implementation of an intercropping system on plantation land and regenerative agriculture in critical lands.

The DPN HKTI delegation at the policy briefing consisting of Dr. Delima Azahari, Ir. Iriana Muadz, Drs. Manimbang Kahariady, Ir. Mulyono Machmur, MS., and Dra. Anita Ariyani also proposed strategic steps to accelerate the real sector through fiscal and non-fiscal stimuli.

In terms of downstreaming, DPN HKTI emphasizes the importance of access to capital for farmers to build small factories such as mini PKS, cooking oil factories, and biodiesel. "Hilirization of CPO, rubber, and coffee must be managed by farmer cooperatives so that added value is not only enjoyed by large industries," said HKTI representatives.

HKTI also asked for the optimization of funds from the Plantation Fund Management Agency (BPDP), either through issued funds or export taxes, so that it is allocated directly to increase farmer productivity.

Facing the potential shift in global supply chains due to Trump's Tariff, HKTI reminded the importance of prudence in opening new markets. "Indonesia must take advantage of opportunities for farmers to become the basis for export production. But don't just be an outlet for the market," explained Fadli Zon.

The ASEAN and Pacific areas are referred to as strategic bases that can be developed as the main markets for Indonesian agricultural products.

Regarding the United States' tariff policy on a number of commodities, such as Trump's Tariff on CPO, rubber, and coffee, DPN HKTI suggested that Indonesia apply resipprocal rates to import soybeans, wheat, and corn from the US. Another alternative is to open the imported market on condition that Indonesia's superior product export rates are removed.

"This negotiations is important. We need to encourage the promotion of CPO, rubber, and coffee in the American market, while fighting for a fairer tariff," concluded Fadli Zon.