US Installs Import Tariffs, Logistics Entrepreneurs Call Lead Time To BRICS Country Better

JAKARTA - The United States (US) continues to impose a reciprocal import rate of 32 percent for products from Indonesia, and will take effect from August 1, 2025. On the other hand, Indonesia officially becomes a full member of BRICS.

For your information, BRICS is a group of countries that are collaborating to strengthen economic collaboration between member countries by increasing trade, investment, and technological innovation without having to rely on Western countries. BRICS itself is an acronym for the front letters of its respective member countries, namely Brazil, Russia, India, China, and South Africa (South Africa).

Chairman of the DPP Indonesian Logistics and Forwader Association (ALFI) Akbar Djohan said Indonesia's joining in the BRICS membership opened up opportunities for global market destinations in addition to the US.

Moreover, he said, the US also implemented a reciprocal tariff policy for all countries, including to Indonesia by 32 percent for imports of goods to the US.

"This can be a reason for Indonesia to open global market destinations other than the US, namely with cooperation with countries raised in BRICS (Brazil, Russia, India, China, South Africa), which then members of BRICS are increasingly growing Egypt, United Arab Emirates, Ethiopia, Iran, Saudi Arabia," he told VOI, Wednesday, July 9.

In addition, Akbar said that the lead time for exporting goods from Indonesia to BRICS member countries is also much better than for the US.

The export lead time is the total time needed since export orders were received by exporters to importers. Covering all stages of the export process, starting from ordering, packaging, shipping, to customs processes in the destination country.

"Lead time for exporting goods from Indonesia to countries that are members of BRICS should be better than the US, considering the distance between BRICS and Indonesia's location is closer, except for Brazil," he explained.

Akbar said Logistics entrepreneurs who are members of ALFI will take momentum in supporting the smooth flow of export and import goods to BRICS member countries, after an official statement from the government made a policy to join BRICS.

"Hopefully Indonesia's cooperation with BRICS will provide many new export market destinations for our products, and further increase the trade balance surplus of goods and also improve the balance of service trade as well," he said.

US Still Applies 32 Percent Reciprocal Tariff

Previously, it was reported that the United States (US) continued to impose a reciprocal import rate of 32 percent for products from Indonesia, which will take effect on August 1, 2025.

United States President Donald Trump said that this policy was called a firm step to correct a trade deficit that was considered unsustainable and detrimental to America's economy and national security.

Starting August 1, 2025, we will charge 32 percent of all Indonesian products entering the United States, apart from all other sectoral tariffs. Goods that are forwarded through third countries to avoid higher tariffs will also be subject to these rates," he explained in a letter circulating, Tuesday, July 8.

Trump also emphasized that the 32 percent tariff could be increased if Indonesia increased the return rate, but was open to lowering if Indonesia opened its market and removed various trade barriers.

"Please understand that this tariff is a necessary measure to improve inequality over the years due to tariff and non-tariff policies as well as trade barriers from Indonesia, which causes the trade deficit to be unsustainable towards the United States," he explained.

According to him, the 32 percent reciprocal tariff rate is actually much lower than what is needed to eliminate the trade deficit owned by Indonesia.