The Amount Of The Export Value Of Footwear Products To The US Before Indonesia Gets A Trump Tariff Of 32 Percent

Illustration: Photo: Doc. ANTARA

JAKARTA - The Indonesian Footwear Association (Aprisindo) highlighted the impact of the policy of the President of the United States, Donald Trump, who issued an executive order regarding the 32 percent increase in tariffs on footwear products from Indonesia.

The increase in tariffs, which will take effect from August 1, 2025, is believed to have resulted in an increase in the total tariff to 42 percent.

Aprisindo Executive Director Yoseph Billie Dosiwoda assessed that the sustainability of the footwear industry in the country was greatly influenced by the reciprocal tariff that Trump would apply.

Moreover, he said, the US is the main export share for these products.

"Industrial sustainability (lates) is strongly influenced by President Trump's reciprocal tariff, because the 2024 footwear export rate to the US is relatively good, although it has gone up and down from the previous year," Billie told VOI, Wednesday, July 9.

Citing data from the Central Statistics Agency (BPS), the export value of Indonesian footwear products to the US reached US $ 2.47 billion throughout 2024.

The export value of Indonesian footwear products to the US until April 2025 has reached 853.02 million US dollars.

Aprisindo, who represents Indonesian footwear industry players, stated that the sector absorbs a lot of labor directly and as a driver of the national economy.

Therefore, Aprisindo really expects full support from the central and regional governments to create a conducive business climate.

Regarding the increase in import duties, Billie admitted that he still had confidence in the negotiations made by the Government of the Republic of Indonesia.

According to him, his party always supports the government's efforts with the resulting tariff opportunities, even to be lower than it is currently in effect while 10 percent.

If the 32 percent tariff is in effect, Aprisindo ensures that it will calculate all margins of bad impact from the application of tariffs in order to ensure production continuity and prevent layoffs.

"The objective condition of Vietnam is lower in tariffs, buyers in the US must look for cheaper prices to enter the US with the same quality than Indonesia, this must order to decrease and will affect the production process," he said.

Then, Aprisindo encourages government protection efforts through the APBN cushion in the form of an incentive program for footwear industry players so that the production process continues.

"The 50 percent discount plus electricity, gas prices, elimination of VAT, suspension of payment of BPJS Manpower for workers in real terms," Billie explained.

"Next is accelerating the completion of Indonesia's Free Trade Agreement (FTA) with the European Union, namely the IEU-CEPA Indonesia-European Union Comprehensive Economic Partnership Agreement, which is a comprehensive economic partnership agreement between Indonesia and the European Union as access to new markets," he added.