Indonesia Expects Boost in Electronic Router and Textile Exports After US Cuts Tariffs

TEMPO.CO, Jakarta - The United States reduced import tariffs on Indonesian goods from 32 percent to 19 percent. The Director General of Economic and Fiscal Policy at the Ministry of Finance, Febrio Kacaribu, stated that the tariff reduction could drive export growth to the U.S. in the second half of 2025.

There are several key export commodities from the country to the U.S. "If the number one export goes to the U.S. is actually machinery, especially electronic routers, that is also what we hope for because with more favorable tariffs, it can continue," Febrio said at the Coordinating Ministry for the Economy office on Monday, July 21, 2025.

Strength is also expected in textile, footwear, and furniture commodities. According to Febrio, the announced import duty reduction by President Donald Trump was well received by businesses.

Furthermore, U.S. import tariffs are lower compared to many other countries. "So, the exports that have already been running with double-digit growth in the first half to America, we hope can continue in the second half of 2025," he said.

One of Sri Mulyani's subordinates stated that Trump's decision was good news. However, the government is still waiting for further developments before the 19 percent tariff officially takes effect on August 1, 2025.

Entrepreneurs are also awaiting the technical implementation of the tariff. The Chairperson of the Indonesian Employers' Association (Apindo), Shinta Kamdani, also stated that Indonesia's export opportunities would be greater if the tariffs to the U.S. are lower than those of other countries.

It is believed that the tariff reduction will help Indonesian exporters, especially in the textile and textile product (TPT) sector. It has a significant portion of its sales in the U.S., amounting to 61 percent. "So, it will certainly be very helpful. At the very least, we need to maintain what we have now. Now, we can seize more opportunities," she said.

However, Shinta also highlighted the cost factors incurred by the industry and business-restricting regulations. Apindo, she said, has already informed the government that deregulation must continue. "So, even though we now have good tariffs, the deregulation, the cost of doing business in Indonesia, must be improved."

Editor's Choice: Govt: Lifting Import Duties on US Goods Won't Significantly Affect Indonesia's Revenue

Click here to get the latest news updates from Tempo on Google News

Iran Says No Plan to Give up Nuclear Enrichment Despite "Serious Damage" to Facilities

18 menit lalu

Top 10 Hottest Cities in the U.S., Average Temperatures & Climate Trends

2 jam lalu

Indonesia Faces Enduring Specialist Doctor Shortage Even by 2045, Warns Health Minister

2 jam lalu

Some Indonesian Citizens Uncooperative in Online Scam Investigation in Cambodia

3 jam lalu

Garuda Indonesia Eyes New Loans for 50 Boeing 777 Purchase

6 jam lalu

339 Indonesian Citizens Arrested in Online Scam Operation in Cambodia

7 jam lalu

Indonesian Ministry Communicates With Ex-Navy Man Who Asked to Be Repatriated from Russia

8 jam lalu

Indonesian U-23 Coach Gerald Vanenburg Responds After Malaysia Match Ends in a Draw

8 jam lalu

Indonesian Social Media Influencer Finally Arrives Back Home After Myanmar Deportation

9 jam lalu

Six Pakistani Nationals Deported for Misusing Stay Permits in Indonesia

9 jam lalu