Trump's Tariff War, Minister Erick: SOEs Still Strong

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said the condition of state-owned companies was in good and strong condition amid the tariff war that occurred between Amarika Serika (US) and China.

Erick said that his party had conducted stress tests on 10 companies that were detected as being affected by the respirical tariff.

According to him, until now there has been no significant impact on state-owned companies such as Himbara, Telkom, MIND ID, and Pertamian.

"Everything is in good condition with the stress test results. Especially if we look at this tariff, it doesn't apply yet, but if it applies from the results of our stress test, the impact is not as deep as we ever feared," he said during a meeting with Commission VI of the DPR RI, in Jakarta, Tuesday, May 20.

Based on the stress test, continued Erick, the condition of state-owned companies is in good condition even though the rupiah has weakened to IDR 20,000 per US dollar.

"God willing, until we fluctuate the Rp20,000 dollar, God willing, it will still be strong. With today's performance, revenue threads, profitability of all we see are still (healthy), yes of course the healthy ones are Rp. 16,000, Rp. 20,000 for shortness of breath," he said.

"Only the final stress test condition if we reach Rp. 20,000 is still in good condition," he continued.

For your information, US President Donald Trump himself will implement a resipprocal tariff policy, namely the implementation of incoming funds of 32 percent for Indonesia.

The government is negotiating trade rates with the United States government.

The technical team from both countries has also exchanged information to continue the negotiations.

If the negotiations set by the government and the US government fail, then the reciprocal rate will take effect from July 9, 2025.

Disturbing The Performance Of Exports And Imports Of The Republic Of Indonesia

Previously, the Director General (Dirjen) of International Trade Negotiations of the Ministry of Trade, Djatmiko Bris Witjaksono, said that Indonesia's export and import performance would decline if the 32 percent reciprocal rate policy was implemented by the US.

Moreover, continued Djatmiko, coupled with a new basic tariff policy of 10 percent that will be imposed on goods entering the US from all over the country, except for Maxico and Canada.

"For Indonesia, yes, this is suffering from our calculations, this can also reduce export and import performance with different ranges for each sector," he said in a virtual press conference, Monday, April 21.

Even so, Djatmiko saw the potential for an increase in investment that would enter Indonesia, if the reciprocal tariff and basic tariff were only carried out by the US.

"But there is also one calculation result that we get that with the absorption of this tariff it will also increase opportunities for investment activities. Quantitatively, the figure is not stated, but it is predicted that it will increase the flow of Asian or FDI investments. If this tariff is carried out either reciprocal or the new baseline tariff," he explained.