Elimination of Import Duties on US Products Deemed Unlikely to Disrupt Indonesia's Investment Climate
Jakarta — The elimination of import duties on American products entering Indonesia is not expected to disrupt the investment climate, particularly for US companies. The duty exemption forms part of an agreement following the US reduction of import tariffs from 32% to 19% for Indonesia.
Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/BKPM, Riyatno, assessed that the measure would not significantly affect the overall investment climate, especially as the government does not rely solely on investment from the United States.
"We carry on as normal. We continue striving to attract investment from various countries," Riyatno said when met at the Ministry of SMEs office in Jakarta on Friday (18/7/2025).
Beyond the US, he said, the government is also pursuing investment from a number of countries across various regions. For the East Asian region, for instance, Indonesia continues to seek investors from China, Japan and South Korea.
"One of our duties is indeed to attract investment. Naturally, not only from the US, but also from Europe and various countries including China, Japan, Korea and others in East Asia," he explained.
The Ministry of Investment and Downstreaming/BKPM is tasked with attracting investment in line with government targets. Based on presidential targets, investment this year is expected to reach Rp 1,905 trillion.
"So our task remains to seek investors to attract investment, especially as targets continue to rise. Moreover, the investment realisation target for this year is Rp 1,905 trillion," Riyatno explained.
Previously, Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu revealed that investment realisation in the second quarter of 2025 had already reached Rp 475 trillion. This figure exceeded the first quarter 2025 achievement of Rp 465 trillion.
"The first and second quarters are already secure. Q1 we were able to release at Rp 465 trillion and Q2 we have already reached Rp 475 trillion," he said at the Pertamina Investor Day at The St. Regis Jakarta on Wednesday (16/7/2025).
Todotua noted that efforts to attract investment in the coming quarters would be fraught with challenges, taking into account the current global economic turbulence.
Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/BKPM, Riyatno, assessed that the measure would not significantly affect the overall investment climate, especially as the government does not rely solely on investment from the United States.
"We carry on as normal. We continue striving to attract investment from various countries," Riyatno said when met at the Ministry of SMEs office in Jakarta on Friday (18/7/2025).
Beyond the US, he said, the government is also pursuing investment from a number of countries across various regions. For the East Asian region, for instance, Indonesia continues to seek investors from China, Japan and South Korea.
"One of our duties is indeed to attract investment. Naturally, not only from the US, but also from Europe and various countries including China, Japan, Korea and others in East Asia," he explained.
The Ministry of Investment and Downstreaming/BKPM is tasked with attracting investment in line with government targets. Based on presidential targets, investment this year is expected to reach Rp 1,905 trillion.
"So our task remains to seek investors to attract investment, especially as targets continue to rise. Moreover, the investment realisation target for this year is Rp 1,905 trillion," Riyatno explained.
Previously, Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu revealed that investment realisation in the second quarter of 2025 had already reached Rp 475 trillion. This figure exceeded the first quarter 2025 achievement of Rp 465 trillion.
"The first and second quarters are already secure. Q1 we were able to release at Rp 465 trillion and Q2 we have already reached Rp 475 trillion," he said at the Pertamina Investor Day at The St. Regis Jakarta on Wednesday (16/7/2025).
Todotua noted that efforts to attract investment in the coming quarters would be fraught with challenges, taking into account the current global economic turbulence.