Trump's Reciprocal Tariff Could Push Indonesian Food Prices Higher

Trump’s Reciprocal Tariff Could Push Indonesian Food Prices Higher

Jakarta, CNBC Indonesia - Senior economist at the Institute for Development of Economics and Finance (Indef), Tauhid Ahmad, warns that the proposed Agreement Reciprocal Tariff (ART) policy championed by United States President Donald Trump could pressure Indonesian food prices. This relates especially to food commodities still dependent on imports.

Tauhid explains that changes in global tariff policy can affect various cost components in trade, from exchange rates to logistics. The impact will ultimately be passed through to domestic product prices.

According to him, the pressure would be directly reflected in food prices, especially for trading contracts that have just been made.

“So it is transmitted to prices, product prices will rise, particularly those on new contracts. For those on older contracts, negotiations may still be possible, but for new contracts, they will look at the spot price,” Tauhid said during an interview in Jakarta, on Thursday (5/3/2026).

Nevertheless, Tauhid says the magnitude of the rise in food prices cannot yet be determined as further calculation is needed.

He notes that the government should pay attention to the potential impact of global tariff policy on domestic food price stability, especially for commodities still dependent on imported supply.