Indonesia Responds to US Additional 10% Tariff and Forced Labour Allegations

The Indonesian government is preparing a response to the United States Trade Representative’s (USTR) proposal for an additional 10 per cent tariff on products exported from Indonesia. This move by the US is a consequence of an investigation related to the prevention of imported goods produced through forced labour.

Coordinating Ministry for Economic Affairs spokesperson Haryo Limanseto revealed the government is scrutinising the preliminary investigation document based on Section 301 of the Trade Act of 1974. Haryo stressed that Indonesia respects human rights and international labour standards.

"The government will follow up on this process by submitting a written comment and actively participating in the public hearing scheduled by the USTR," Haryo stated in Jakarta on Thursday (4/6).

Beyond preparing a formal defence, the government is committed to strengthening its internal monitoring systems. This is intended to ensure that the supply chain for goods entering and leaving Indonesia is free from forced labour practices.

The protectionist move by President Donald Trump’s administration is viewed as an attempt to maintain tariff policy after having previously faced various legal hurdles within the United States. Indonesia is opting for a constructive communication path to mitigate the broader economic impacts for national exporters.