TEMPO.CO, Jakarta - Footwear and textile industry players are voicing concern over the potential impact of the United States' new import tariffs, commonly referred to as "Trump's tariffs", on small and medium-sized enterprises (SMEs).
These reciprocal tariffs are feared to affect not only export-oriented sectors but also industries focused on the domestic market.
David Chalik, Chairperson of the Indonesian Footwear Entrepreneurs Association (Hipan), warned that the tariffs imposed by the U.S. on various countries could lead to a surge of imported goods into Indonesia, especially from China.
He urged the government to take preemptive measures. “Because we are small and medium-sized industries, including large companies with a domestic market that will eventually be overwhelmed,” he said after a coordination meeting at the Coordinating Ministry for Economic Affairs in Jakarta on Monday, April 7, 2025.
David conveyed this proposal during a coordination meeting led by Coordinating Minister for Economic Affairs Airlangga Hartarto.
The meeting brought together representatives from several ministries and business associations to discuss strategies for mitigating the effects of the U.S. tariffs and the ongoing trade talks with Washington.
U.S. President Donald Trump officially announced the imposition of reciprocal tariffs on April 2, 2025. Indonesia is among the affected countries, facing a 32 percent tariff.
Even before the tariffs were announced, David said, the local footwear and textile sectors were already grappling with a flood of low-cost imports from China, which had made it increasingly difficult for domestic products to compete.
Febrio Kacaribu, Head of the Fiscal Policy Agency (BKF) at the Ministry of Finance, assured that the government is prepared to handle an influx of imports resulting from the tariffs.
He noted that Indonesia has existing instruments in place, including Safeguard Import Duties and Anti-Dumping Import Duties (ADID).
“So there's SIMP, there's ADID. If, for example, there are concerns about dumping, there are mechanisms in the Ministry of Trade and also in the Ministry of Finance,” he explained.
Editor’s Choice: Malaysia PM Anwar Ibrahim Calls for a United ASEAN Against Trump's Tariffs
Click here to get the latest news updates from Tempo on Google News
Malaysia PM Anwar Ibrahim Calls for a United ASEAN Against Trump's Tariffs
1 jam lalu
Anwar Ibrahim stated that ASEAN countries must unite in facing the import tariffs imposed by Donald Trump.
What to Know About U.S. TikTok Ban as Trump Extends Sale Deadline
2 jam lalu
Trump has once again postponed the ban of the TikTok application in the United States for 75 days
Trump Tariffs May Spur Indonesia's Digitalization, Says Expert
4 jam lalu
The new U.S. import tariff policy will have no impact on the digital sector, which has long been U.S.
Today's Top 3 News: Apindo Calls 4 Key Steps for Govt to Counter Trump's Import Tariffs
4 jam lalu
Here is the list of the top 3 news on Tempo English today.
Indonesia Reveals ASEAN to Prioritize Negotiations on Trump Tariffs
6 jam lalu
Indonesian government reaches an agreement with ASEAN countries to prioritize negotiation with the US in response to Trump's tariffs.
China Vows Better Trade Policies as US Tariff Controversy Grows
6 jam lalu
China promises better international economic cooperation policies following the global scrutiny of U.S. import tariffs.
U.S. Official: Over 50 Countries Seek Trade Talks After Trump Declares Sweeping Tariffs
6 jam lalu
More than 50 countries are said to have asked the US to reopen negotiations on import tariffs set by Donald Trump.
Prabowo on Trump Tariffs: Indonesia to Negotiate with the US
8 jam lalu
Indonesian President Prabowo Subianto stated that Indonesia is facing challenges as the world was shaken by the trade war due to Trump's tariffs.
Apindo Calls 4 Key Steps for Govt to Counter Trump's Import Tariffs
10 jam lalu
The Indonesian Employers' Association (Apindo) has formulated several proposals to the government to minimize the impact of the new import tariffs from the United States.
Trump's Tariffs on ASEAN Countries
11 jam lalu
Trump imposes different import tariff rates on ASEAN countries. Indonesia is subjected to a 32 percent tariff starting Wednesday, April 9, 2025.
