Trump's Tariffs Take Effect Tomorrow, Trade Minister Budi Confident Indonesian Exports Will Remain Promising

Minister of Trade Budi Santoso (Photo: Antara)

JAKARTA - Trade Minister Budi Santoso is optimistic that Indonesia's export performance will continue to grow positively, even though the reciprocal tariffs imposed by US President Donald Trump will take effect tomorrow.

Budi stated that based on data from the Central Statistics Agency (BPS), Indonesia's export performance from January to June increased by 7.7 percent. The primary destination was China, with the United States in second place.

"Our largest surplus from January to June was to the United States, around US$9.9 billion. The second largest was to India. This means our products can compete in the United States," he said at the Ministry of Trade office in Jakarta on Wednesday, August 6.

Budi also stated that the 19 percent import tariff imposed on Indonesia to the US is relatively lower compared to other ASEAN countries, including China, Vietnam, and India.

Although Indonesia's import tariffs are the same as those of Malaysia, Thailand, and the Philippines, Budi expressed optimism that it can compete with these three countries.

"We're optimistic. If the American market remains vibrant, it will be easier for us to enter. Because we're competitive, we don't have to start from scratch. We're one step ahead of other countries," he said.

Therefore, Budi said that business actors must be able to take advantage of various business opportunities to increase exports to the American market.

"Reciprocally, we get lower tariffs, so we hope it will be easier. Actually, that's a great opportunity to enter America," he said.

For your information, on July 31, US President Donald Trump signed a decree officially imposing tariffs ranging from 15 to 41 percent on products supplied to the US from more than 60 countries.

The tariffs were initially expected to take effect on Friday, August 1, but recent reports indicate they will only take effect on August 7, 2025.