Jakarta (ANTARA) - The World Bank assesses that the impact of US\nglobal policies, including tariff policies, on Indonesia\u2019s export\nperformance is relatively limited.<\/p>\n
Aaditya Mattoo, the World Bank\u2019s Chief Economist for East Asia and\nthe Pacific, explained that the total tariffs currently faced by\nIndonesia remain below 20 percent, comparable to Vietnam, though\nslightly higher than Malaysia and Thailand.<\/p>\n
\u201cWhen calculated through a model, the impact (of US tariffs) on\nIndonesia\u2019s real income is only around 0.2 percent, thus not causing a\nsignificant negative impact on GDP,\u201d he stated in an online interview\nwith ANTARA from Jakarta on Wednesday.<\/p>\n
He added that the World Bank\u2019s study in the April 2026 edition of the\nEast Asia and Pacific Economic Update shows that the negative effects of\nUS tariffs can be mitigated through domestic trade policy reforms.<\/p>\n
Indonesia is said to still impose many non-tariff barriers, such as\nimport regulations for raw materials and strict technical standards.<\/p>\n
\u201cIf Indonesia undertakes reforms to reduce non-tariff barriers on\ngoods and services, the benefits from those reforms will far outweigh\nthe costs resulting from US tariffs. In that way, the negative impact of\ntariffs can be erased,\u201d Mattoo said.<\/p>\n
He emphasised that through domestic policies, Indonesia can treat US\ntariffs as a minor issue because the benefits of domestic reforms will\nfar surpass the costs of those tariff policies.<\/p>\n
Previously, on 19 February, Indonesia and the US had agreed on a\nreciprocal trade deal during a meeting between Indonesian President\nPrabowo Subianto and US President Donald Trump in Washington, DC.<\/p>\n
That agreement is contained in the Agreement on Reciprocal Trade\n(ART) document, which has been officially signed by both heads of\nstate.<\/p>\n
In general, the US applies an average tariff of 19 percent on\nproducts originating from Indonesia. However, the US government provides\nspecial exemptions for certain identified products that receive a 0\npercent tariff.<\/p>\n
In return, Indonesia has eliminated tariffs on 99 percent of products\noriginating from the US.<\/p>\n
The World Bank report notes that these reciprocal tariffs were\nsubsequently replaced with a global tariff of 10 percent imposed under\nSection 122 of the Trade Act of 1974. This tariff is temporary and\napplies until July 2026.<\/p>\n
The Central Statistics Agency (BPS) recorded Indonesia\u2019s export value\nfor January\u2013December 2025 at $282.91 billion, up 6.15 percent from the\nsame period in 2024.<\/p>\n
Of that amount, non-oil and gas exports reached $269.84 billion, or\nan increase of 7.66 percent.<\/p>\n
The US is the second-largest export destination country with a value\nof $30.96 billion, after China at $64.82 billion. Non-oil and gas\nexports to the US were recorded at $4,420.2 million, up 16.66 percent\nfrom the previous year.<\/p>\n
Meanwhile, Indonesia\u2019s import value for the January\u2013December 2025\nperiod reached $241.86 billion, up 2.83 percent from the previous year.\nNon-oil and gas imports also rose 5.11 percent to $209.09 billion.<\/p>\n
The US ranks third as a supplier of imported goods with a value of\n$9.84 billion, or 4.70 percent of total imports.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/world-bank-assesses-us-tariffs-impact-on-indonesias-exports-as-relatively-small-1775659923", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }