Ahead Of The Implementation Of Residual Tariffs, The Trade Minister Begins To Take A Peek At Indonesian Product Competitors To The US

JAKARTA - Trade Minister Budi Santoso has begun to anticipate Indonesian product competitors to the United States (US) market. This step follows the reciprocal tariff plan that will take effect in the near future.

Currently, continued Budi, his party calculates the potential of Indonesian products to the US market at a new agreed rate. Including, mapping out competing countries for similar products in the market.

This was conveyed by Budi in a press conference 'Indonesia Trade Performance Semester I-2025' at the Ministry of Trade office, Jakarta, Monday, August 4.

"We have also started peeking at 10 of our export products, our main products, who are the competitors, how many competitors out of the 10 products get a resipprocal rate and I think we are still competitive with the rates given to our competitors," said Budi.

Budi also said that the 19 percent tariff for Indonesian products is still better than a number of neighboring countries, including Malaysia, the Philippines, Thailand, and Cambodia, which are subject to the same tariff, which is 19 percent.

Meanwhile, continued Budi, Vietnam is subject to tariffs of 20 to 40 percent, Brunei Darussalam 25 percent, and Laos and Myanmar at 40 percent.

"If we look at us, we get a 19 percent reciprocal rate, meaning this is a fairly good tariff or a small tariff in Asean countries including several countries such as Malaysia, the Philippines and Thailand," he said.

Even so, Budi said that his party would continue to calculate the potential of the US market for Indonesian products. The goal is to find out interest in Indonesian products.

"We are looking at the market in America again, meaning that if the market to America continues to be enthusiastic, it means that our chances will be even greater because we get better rates than other countries," he said.

For your information, there are about 10 commodities exported by Indonesia to the United States. First, machinery and other electrical equipment with a value of 964 million US dollars. Second, sports shoes worth 756 million US dollars.

Third, pneumatic tires worth USD 738 million. Fourth, sports shoes with outer and rubber or plastic soles worth USD 715.7 million. Fifth, cable modem and USD 699 million card modem. Sixth, processed palm oil worth USD 686 million.

Seventh, natural rubber, technical specifications worth 591 million US dollars. Eighth, the photovoltaic set is worth 553 million US dollars. Ninth, a 543 million US dollar pullover and cardigan sweater. Tenth, vaname shrimp worth 434.5 million US dollars.

Previously, the Minister of Trade Budi Santoso reported that Indonesia's total trade balance surplus was recorded at 19.48 billion US dollars during the first semester of 2025.

Of this total, continued Budi, US$9.92 billion came from a trade surplus with Uncle Sam's country. This figure is the highest contributor to Indonesia's total trade surplus in that period.

"If we look at our trading partners or our highest surplus is to America, which is to contribute the highest surplus until the first semester of 9.92 billion US dollars," Budi said at a press conference at the Indonesia Trade Performance Semester I-2025 at the Ministry of Trade office, Jakarta, Monday, August 4.

For your information, the total trade value of the Republic of Indonesia-US which reached 19.65 billion US dollars in the first semester of 2025. In detail, Indonesia's exports of products to the US reached 14.79 billion US dollars. Meanwhile, the imports amounted to 4.87 billion US dollars.

Budi said the trade balance surplus with the US indicates that Indonesian goods still have competitiveness. Therefore, he also hopes that export performance will remain positive after the US reciprocal rate applies.

"Even though this has not been applied, the reciprocal rate is yes, so later we will continue to push and we will certainly try after the implementation of the ktia export reciprocal rate continues to increase," he said.