In a press statement issued on Tuesday, Apindo chairperson Shinta Kamdani said that there is still room for reaching a mutual agreement through diplomacy.
“The August 1 (2025) implementation deadline indicates that the diplomatic channel remains open and that opportunities for reaching a constructive agreement are still available,” she expounded.
She emphasized the importance of waiting for an official response from the Indonesian government, as the country’s negotiation team is currently in Washington, D.C., and diplomatic efforts are still underway.
However, Kamdani warned of serious consequences if the 32-percent reciprocal tariff is fully enacted, particularly for products made by labor-intensive industries such as textiles, footwear, furniture, and toys.
These sectors are under pressure from weakening global manufacturing indicators, rising production costs, and slowing demand, she added.
“Although Indonesia’s exports to the US account for only around 10 percent of total exports, and exports contribute a relatively moderate 21 percent to the GDP (gross domestic product), the risks of declining demand, the influx of cheap or illegal goods, and high business costs remain real challenges that must be addressed collectively,” she said.
She stressed that Indonesia’s success in navigating the trade dispute will be strongly determined by the strength of its economic diplomacy. She then emphasized the need for solid, measured, and focused efforts to secure the long-term interests of the national industry.
Apindo said it has been actively supporting the negotiation process. Over the past 90 days, the association, together with business stakeholders, has submitted various data-driven recommendations to the government through both official forums and in writing.
President Trump, in a letter dated July 7, to President Prabowo Subianto, informed that the US will proceed with imposing a 32-percent tariff on all Indonesian imports from August 1.
However, he indicated a willingness to renegotiate, if Indonesia agrees to adjust its trade policies and provide broader access to its domestic market for the United States.
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Translator: Bayu Saputra, Kuntum Khaira Riswan
Editor: Aditya Eko Sigit Wicaksono
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