TEMPO.CO, Jakarta - Secretary General of the Indonesian Young Entrepreneurs Association (HIPMI), Anggawira, has called on the government to fast-track trade agreements with the European Union, the Middle East, and Africa. '
This move aims to diversify Indonesia’s export markets and reduce reliance on the United States.
His statement comes in response to U.S. President Donald Trump’s new tariff policy, which imposes additional basic tariffs and customs duties on various trade partners, including Indonesia, which now faces a 32 percent retaliatory tariff.
"The government must accelerate trade agreements with the European Union, the Middle East, and Africa to lessen dependence on the U.S.," Anggawira stated in Jakarta on Thursday, April 3, 2025.
He emphasized that expanding export destinations through trade agreements is a critical medium-term strategy. Meanwhile, in the short term, the government should focus on maintaining market stability and investor confidence. This includes financial market interventions and stimulus packages to support businesses affected by the tariff hike.
Expanding trade targets, he said, can also be achieved by optimizing the Regional Comprehensive Economic Partnership (RCEP) agreement.
RCEP is a trade bloc in the Asia-Pacific region involving 15 countries with a one-third share of the global economy. "Optimizing the utilization of the RCEP agreement to increase exports to the Asia-Pacific," said Anggawira.
According to him, the Indonesian government needs to respond quickly and appropriately to Trump's policy, which the powerful leader called the "Liberation Day".
The government's appropriate and timely response will have a real impact on entrepreneurs, he said. "Without concrete steps, economic uncertainty could deepen and have a negative impact," he continued.
Trump's tariff policy is considered a major trigger for high pressure on the global economy, which significantly affects the business world.
President Trump on Wednesday, April 2, 2025 announced an increase in trade tariffs on countries that have enjoyed trade surpluses with the US.
According to White House data, Indonesia ranks eighth on the list of countries affected by the US tariff increase, at 32 percent. Around 60 countries will be subject to half of the tariffs they impose on the US.
Indonesia is not the only Southeast Asian nation affected by the US trade policy. Malaysia, Cambodia, Vietnam, and Thailand are also facing tariff hikes of 24 percent, 49 percent, 46 percent, and 36 percent, respectively.
Trump's proposed tariffs were unveiled during the "Make America Wealthy Again" event at the White House Rose Garden on Wednesday.
The universal tariffs introduced under the Trump administration are set to take effect on Saturday, April 5, 2025, while retaliatory tariffs targeting around 60 US trading partners will be enforced starting Wednesday, March 9, 2025.
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