Indonesia Responds to U.S. Tariffs with Five-Point Policy Reform Plan

14 hours ago 13

TEMPO.CO, Jakarta - The Indonesian government will reform several regulations to respond to the reciprocal tariff policy from the United States. The plan includes revising the Domestic Component Level (TKDN) rules and changing import license policies and quotas.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government has formed a deregulation task force to finalize this step.

"All task forces have started operating, we just have to wait for the formation target," said Airlangga on Wednesday, April 30, 2025.

Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso emphasized that the government is not only responding to the United States policy, but also using this momentum to improve the national regulatory structure.

"Deregulation covers everything, not just local content. Import licenses, quotas; we are rearranging everything. We call it reform, we are using this moment not only to respond to the U.S., but also for national improvement," said Susi.

So, what regulations will the Indonesian government change? Here is a summary:

1. Revision of the Domestic Component Level (TKDN) Obligations

Airlangga previously mentioned that one of the Deregulation Task Force's responsibilities is to handle the Domestic Component Level (TKDN) policy, which is planned to be relaxed or made flexible, especially in the information, communication, and technology (ICT) sector.

2. Adjustment of import duties for U.S. products

The step to adjust import duties for selective U.S. products was previously mentioned by Finance Minister Sri Mulyani Indrawati in a press conference following the periodic meeting of the Financial System Stability Committee (KSSK).

The import duty rates previously mentioned as a trade barrier complained about by the U.S. were included in the 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers published by the United States Trade Representative (USTR).

3. Deregulation of technical regulations and revision of import quota licenses

This plan was also mentioned by Sri Mulyani as a negotiation step. Previously, President Prabowo Subianto requested the elimination of technical regulations (teknis) which are derivative rules in ministries, especially related to import quota permits.

4. Reform of tax and customs administration

The government will reform tax and customs administration rules to facilitate entrepreneurs. Through simplification, it is expected to reduce the burden on entrepreneurs affected by reciprocal tariffs.

5. Reform of trade remedies regulations

The government will prepare trade remedies policies to tackle the flood of imported goods in the form of traded remedies.

Trade remedies are actions allowed by the World Trade Organization (WTO) for member countries to protect domestic industries from unfair trade practices or harmful import surges.

Editor's Choice:  Trump's Tariffs Add $900 Million to Apple's Operating Costs

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



5 Rarest US Bills, Discontinued and Fortune Worth Banknotes

6 jam lalu

5 Rarest US Bills, Discontinued and Fortune Worth Banknotes

In the vast landscape of American currency, these rare US bills serve as more than just mediums of exchange, but also enduring pieces of history.


Indonesia Responds to USTR's Accusations of Bulog's Food Import Monopoly

1 hari lalu

Indonesia Responds to USTR's Accusations of Bulog's Food Import Monopoly

Indonesian President Prabowo Subianto requests the establishment of food reserves in Perum Bulog


Trump's Tariffs Add $900 Million to Apple's Operating Costs

1 hari lalu

Trump's Tariffs Add $900 Million to Apple's Operating Costs

Apple faces uncertainty due to potential sudden policy changes.


Trump-Carney Meeting Looms: What's the Real Issue?

2 hari lalu

Trump-Carney Meeting Looms: What's the Real Issue?

Canadian Prime Minister Mark Carney, a figure who often voices disputes with Trump. What are the issues surrounding Canada and the U.S.?


US, Ukraine Finalize Minerals Deal After Trump Push

2 hari lalu

US, Ukraine Finalize Minerals Deal After Trump Push

The U.S. and Ukraine finally signed a mineral deal. The talks had stalled after a meeting between Trump and Zelensky last February.


Trump Says U.S. Ships Should Sail Free Through Suez and Panama Canals

3 hari lalu

Trump Says U.S. Ships Should Sail Free Through Suez and Panama Canals

Trump suggested that American ships should travel free through the Suez and Panama Canals, claiming the U.S. is responsible for their existence.


USDA Forecasts 3.9 Million Ton Drop in Indonesia's Rice Imports by 2025

3 hari lalu

USDA Forecasts 3.9 Million Ton Drop in Indonesia's Rice Imports by 2025

Indonesia occupies the first rank as the country with the most rice imports in 2023, and now the USDA projects a decline in imports in 2025.


Mark Carney Leads Liberal Party to Win in Canada, Declares Bold Vision Against Trump

3 hari lalu

Mark Carney Leads Liberal Party to Win in Canada, Declares Bold Vision Against Trump

The Liberal Party under the leadership of Mark Carney continues its dominance in Canada after winning the election held on Monday, April 28, 2025.


Indonesian Company Sets Record for Galvanized Steel Exports to US

3 hari lalu

Indonesian Company Sets Record for Galvanized Steel Exports to US

PT AM/NS Indonesia has achieved a record high export of galvanized steel while partnering with the U.S. in the last two decades.


Coca-Cola Sales Dip in Denmark Amid Boycott Over Trump's Greenland Remarks

3 hari lalu

Coca-Cola Sales Dip in Denmark Amid Boycott Over Trump's Greenland Remarks

The Coca-Cola boycott stemmed from widespread disapproval of U.S. President Donald Trump's threat to acquire Greenland.


Read Entire Article
Pemilu | Tempo | |