Prabowo Warned of Layoff Risks as Trump's Tariffs Loom

1 week ago 12

April 10, 2025 | 05:01 pm

TEMPO.CO, Jakarta - Member of House Commission VI, Rieke Diah Pitaloka, warned President Prabowo Subianto of a potential wave of layoffs prompted by Trump’s reciprocal tariffs. She said the tariffs will lead to deflation anomalies and fiscal risks for Indonesia, especially in the fourth quarter of 2025.

"Beware of its (tariffs) impact on the national industry, including the wave of layoffs. Unemployment rate has grown since late 2024 until March 2025," said Rieke in a written statement quoted on Thursday, April 10, 2025.

She urged Prabowo to deploy an economic team to formulate innovative policy measures in the wake of Trump’s tariffs, as Trump’s “trade war” will spawn domino effects such as increased levies, higher consumer prices, and weakened purchasing power.

"If the purchasing power of American consumers drops, the demand for Indonesia will certainly weaken. A weakening demand will lead to less Indonesian production," she said.

The reciprocal tariff by the U.S. was initially set to take effect on Wednesday, April 9, 2025, before Trump declared a 90-day pause on the implementation. Indonesia is subjected to a reciprocal tariff of 32 percent. There are several products excluded from the reciprocal tariff, such as items protected under 50 USC 1702 (b), such as medical and humanitarian goods.

Moreover, other unaffected products are those that have been subjected to tariffs based on Section 232, including steel, aluminum, automobiles, and automotive parts. Strategic products like copper, semiconductors, wood products, pharmaceuticals, bullion or precious metals, as well as certain energy and mineral products not available in the U.S., are also unaffected.

Ilona Estherina contributed to the writing of this article.

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