Minister Of Industry Agus Regarding Import Tariffs 32 Percent: Government Continues To Open Negotiation Spaces

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: ANTARA)

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita responded to the plan of the President of the United States (US) Donald Trump to impose a resiprocal import rate of 32 percent for products from Indonesia, which will take effect from August 1, 2025.

Agus said the government would continue to prioritize efforts to negotiate and dialogue constructively in order to maintain the sustainability of international market access while still prioritizing the interests and competitiveness of the domestic industry.

"The government will continue to open up space for negotiations with the United States to find balanced and just solutions," Agus said in his official statement, Tuesday, July 8.

According to him, the government is preparing a number of strategies, ranging from tariff liberalization, strengthening technical regulations, increasing industrial compliance with international standards to optimizing bilateral and multilateral technical cooperation.

"With the postponement of the implementation of the new US tariff, it will provide space for the government to reach a new agreement in US reciprocal rates," he explained.

He considered that now is not the time for industry players to panic, but rather the time to work smarter and technocratic.

For example, strengthening industrial capacity from upstream to downstream, improving data and tracking systems (traceability) and ensuring all supply chain actors understand the growing global policy direction.

"We are optimistic that our national industry is strong and adaptive," he said.

For example, Agus continued, Indonesia's textile and footwear products will still be more competitive with textiles and footwear from Bangladesh, which is planned to be subject to a reciprocal tariff of 35 percent.

Then, Indonesian processed food products will also be more competitive than Thailand, which is planned to be subject to a tariff of 36 percent in the US.

"On the other hand, Indonesia will continue to improve quality and competitiveness with BRICS countries," he said.

Furthermore, Agus also ensured that the government would continue to assist and facilitate industrial needs so that they could continue to compete, transform and innovate within the framework of a sustainable economy.

"With a calm, careful and data-based approach, the government believes that every challenge can be changed to an opportunity for strengthening the national industrial structure and expanding the influence of Indonesian products in the global market," he concluded.