Airlangga's Office Speaks Out on New 10% US Tariff on Indonesia
The Coordinating Ministry for Economic Affairs has confirmed that the United States has officially imposed a new 10% tariff on imports from Indonesia. Indonesia is among 17 countries subjected to this specific rate under the new US trade policy.
Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso stated that out of the 60 countries affected by the new US tariff policy, Indonesia falls into the group facing a 10% levy, while others are subject to a 12.5% rate. He explained that the imposition of the 10% tariff is based on Section 301 of the Trade Act of 1974, targeting 60 economies deemed to have not effectively implemented or enforced bans on imports of goods produced by forced labour.
Regarding the separate issue of excess capacity, the ministry is still awaiting further details from the United States Trade Representative (USTR). Susiwijono noted that the government is waiting for the announcement of results concerning the excess capacity investigation. He also confirmed that exemptions for certain Indonesian export products, such as textiles and other labour-intensive goods, remain in place, shielding them from the additional tariffs.
Previously, US President Donald Trump announced the official details of the new tariff policy, which has been touted as a revival of trade wars during his administration. According to a statement released by the USTR, the tariffs are imposed under Section 301 of the Trade Act of 1974 against 60 economies for failing to effectively enforce prohibitions on imports produced by forced labour. Besides Indonesia, the other 16 countries subject to the new 10% tariff include Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom. Other economies, including the European Union, Japan, South Korea, Taiwan, and Switzerland, potentially face tariffs ranging between 10% and 12.5%.