RI 0 Percent, US 19 Percent: Who Benefits?

Donald Trump often makes noise. The United States government under Trump applies tariffs of up to 32 percent for Indonesian products. Through direct communication with President Prabowo Subianto, the figure was successfully reduced to 19 percent. However, at the same time, Indonesia actually applied a 0 percent tariff for United States products.

This news was announced by Trump himself through his social media. President Prabowo said the reduction in tariffs was not a coincidence. "We have calculated everything," he said at Halim Perdanakusuma Air Base, Jakarta.

Although the government calls this progress, many parties actually question the justice of this agreement. Indonesia opens full access, while the US remains limiting.

Diponegoro University economist, Wahyu Prasetyawan, sees this as a new inequality. "US products enter without a hitch, we are still subject to tariffs. This hit the domestic industry," he said. He reminded, imbalances like this could trigger early deindustrialization.

In line with that, BELIOS Director Bhima Yudhistira warned that Indonesia is facing a hidden tariff war. "If exports are hampered but the domestic market is flooded with US products, we are exchanging long-term growth for short-term imaging," he said.

Minister of Industry Agus Gumiwang tried to see the positive side. According to him, the reduction in tariffs could be an opportunity for certain sectors such as food and drinks. But textile, footwear and logistics entrepreneurs complained.

The Indonesian Textile Association (API) is worried about losing competitiveness due to high production costs and export tariff burdens. Meanwhile, the General Chairperson of the Indonesian Logistics and Forwader Association (ALFI) Akbar Djohan said that the activity of the logistics service industry could be disrupted in line with the reduced volume of export transactions due to the applicability of this reciprocal rate.

Interestingly, in the midst of this tariff negotiations, news emerged that Garuda Indonesia would buy a Boeing aircraft. Garuda said this purchase was part of a long-term strategy. However, the public suspects this is part of a trade return package with the US.

On the other hand, Indonesia is also preparing to import wheat from the US. We make sure not to flood the market. But supply must be safe," said Aptindo Executive Director Ratna Sari Loppies. He said the use of wheat from the US was still 5 10 percent of the total need, and the additional volume remained within reasonable composition limits.

Although the product is different, this is somewhat in contrast to the statement of the Minister of Agriculture Amran Sulaiman who stated that Indonesia currently has a corn surplus and does not need to import.

Even so, Amran sees opportunities from the new tariff gap for CPO (crude palm oil) products. Currently, Indonesia's CPO tariff to the US is only 19 percent, lower than Malaysia which is subject to 24 percent. "This means there is a golden opportunity," said Amran.

But there are still big questions. Does this agreement really strengthen the national economy?

INDEF Director Esther Sri Astuti assessed that the US tariff would increase prices in the market. "Demands are decreasing, companies can lose money. In the end, they can be laid off," he said as quoted by BBC Indonesia. This domino effect can make the economy more sluggish.

On paper, the RI-US agreement is said to be mutually beneficial. But in the field, the domestic industry is nervous, exports are hampered, and production capacity is starting to be revised.

The government may call the 0 percent figure a diplomatic victory. But the people and business actors have the right to ask. Who really benefited?