Regarding The Impact Of The 0 Percent US Goods Tariff On MSME Products, This Is What Minister Maman Said

JAKARTA - Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurahman said the decision to impose a 0 percent tariff for almost all goods in the United States (US) would not significantly erode the sale of MSME products.

The reason, said Maman, is that the market for local MSME products itself has been regulated in Government Regulation (PP) Number 7 of 2021 concerning Ease, Protection and Empowerment of Cooperatives and MSMEs.

In this regulation, the government stipulates the implementation of the procurement of goods and services for MSMEs of 40 percent.

"One of the markets (MSME products) besides the export was also domestic. So, you can imagine if, for example, everything, we have 40 percent of Indonesia's service goods expenditure, the central government, provinces and districts," Maman told reporters at the Smesco Building, Jakarta, Wednesday, July 23.

According to Maman, if the regulations for the procurement of goods and services run smoothly, the absorption of local MSME products will be maintained.

"If 40 percent is really 100 percent implemented using local products, it means the economy can move," he said.

Even so, Maman was still reluctant to elaborate further on the projected impact of Trump's tariff on the sale of local MSME products. According to him, his party will still carry out further coordination with a number of other relevant ministries/agencies.

"I think Trump's tariff is the domain of the Ministry of the Economy and the Ministry of Finance. I don't want it to be wrong if I answer or not, I will cause polemics later," he said.

Previously, US President Donald Trump announced that import rates for Indonesian products entering America would be set at 19 percent. The decision was said to be the result of direct negotiations between him and Indonesian President Prabowo Subianto.

"Indonesia will pay a 19 percent tariff to the United States for all imported goods from them to our country," Trump said in a statement monitored from his social media account, Truth Social.

The 19 percent figure indicates a significant decline from the initial 32 percent rate that Trump first announced in April 2025.

At least 10 of Indonesia's largest export commodities to the US. These include electrical and electronic equipment (USD 4.83 billion); footwear, gadgets and the like (USD 2.64 billion); knitted clothes or hooks (USD 2.30 billion); animal/drugized fat and oil, divided products (USD 2.19 billion); as well as non-knitted clothes or hooks (USD 2.14 billion).

Then, there are rubber commodities (1.96 billion US dollars); furniture, lights, signs, manufacturer buildings (1.64 billion US dollars); machines, nuclear reactors, cassava (1.23 billion US dollars); fish, krustacean, moluska, aquatic invertebrates (1.15 billion US dollars); as well as leather goods, animal intestines, equipment, travel items (910.46 million US dollars).