TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati estimates that the decrease in import tariffs from the United States for Indonesian products will have a positive impact. Especially in the performance of labor-intensive industries.

The state treasurer views the decreased tariff as a successful negotiation. "The reciprocal 19 percent decrease in the United States' tariff for Indonesia is expected to boost the performance of labor-intensive sectors, such as textiles, footwear, and furniture," said Sri Mulyani during the Press Conference on the Results of the Third KSSK Periodic Meeting in 2025 in Jakarta on Monday, July 28, 2025.

On the other hand, Sri Mulyani also commented on the duty-free imports of U.S. products. As is known, the zero percent tariff policy serves as a response to the decrease in tariffs for Indonesian exports. "On the other hand, the zero percent tariff on U.S. products is expected to lower the prices of gas and food products in Indonesia. The development of ripple effects needs to be continuously monitored," she said.

Previously, the decrease in U.S. import tariffs was positively welcomed by footwear and textile entrepreneurs. The Executive Director of the Indonesian Footwear Association (Aprisindo), Yoseph Billie Dosiwoda, believes that Indonesia can be more competitive among other countries with higher tariffs.

According to Aprisindo, Indonesian workers have an advantage when it comes to meticulously and neatly making footwear. To take advantage of this opportunity, buyers will seek better quality at affordable prices.

The Chairperson of the Indonesian Textile Association (API), Jemmy Kartiwa, expressed a similar sentiment. Jemmy is confident that the newly announced U.S. import tariffs will strengthen market access and increase the competitiveness of Indonesian textile products in the American market.

"We hope that the follow-up to this policy will drive further policies. Including the harmonization of technical regulations and trade facilitation so that labor-intensive industries can optimally take advantage of export opportunities," said Jemmy in an official statement.

Although considered advantageous for business players, the Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal, believes that the reciprocal policy carries risks that may harm Indonesia. "Because by giving zero percent, this is extraordinary. Providing such broad access to U.S. products, especially those that are sensitive, such as agriculture," said Faisal.

The entry of tariff-free U.S. products, he said, will increase their access to the Indonesian market for various commodities. Faisal believes this could present a new challenge for Indonesia, requiring an increase in domestic production capacity to achieve food self-sufficiency targets, especially when competing with imported agricultural products that are often much cheaper.

Editor's Choice: TKDN Reform Not Limited to U.S. Products, Industry Ministry Says

Click here to get the latest news updates from Tempo on Google News