TEMPO.CO, Jakarta - The move by the United States (US) government to impose a 32 percent tariff on Indonesian products will directly impact the textile and garment industry in the country. Especially since President Donald Trump has set the new tariff to take effect on August 1, 2025.
The Executive Director of the Indonesian Textile Association (API), Danang Girindrawardana, said that business owners still hope that the US government will lower the tariff. If not, entrepreneurs need to seek new export markets.
"The risk is that we (business owners) have to make trade maneuvers to non-American countries. One of the biggest challenges is shifting the market to other countries. That's the challenges," he said when contacted by Tempo on Tuesday, July 9, 2025.
According to Danang, redirecting exports to other countries is a possible scenario if Indonesian products are affected by the tariff increase, as the prices of Indonesian products become less competitive compared to those of other textile-producing countries. However, shifting the export destination is not easy and cannot be done quickly. "Building a new market with other countries takes at least one year," said Danang.
Currently, the American market can absorb up to 40 percent of textile products from Indonesia. The Council of Experts of the Indonesian Employers' Association (Apindo) considers this percentage to be very high. Now, entrepreneurs have to put their thinking caps on to compensate for or redirect this portion to other potential countries if import tariffs rise.
The problem is that the export markets of other countries are not as large as that of America, so many new markets need to be created. "This is so that in total it can approach the size of the American market," he said again.
Another alternative that can be done is to rely on the domestic market. However, at present, the Indonesian market is already full of imported finished goods, especially illegal ones.
Because of this, API urges the government to immediately enact protective policies that can be issued in two forms, namely non-tariff barriers or tariff barriers. "These protective policies will reduce the influx of foreign goods entering Indonesia, especially finished products," he said.
Editor's Choice: Indonesia Will Continue Investment, Import Push Despite 32% US Tariff
Click here to get the latest news updates from Tempo on Google News
Prabowo Invites Brazilian President to Celebrate His Birthday in Indonesia
26 menit lalu
President Prabowo Subianto invites President Luiz Inacio Lula da Silva of Brazil to celebrate his birthday in Indonesia in October 2025.
Alert Level for Mount Lewotobi Stays Elevated After Expelling 18 Kilometers of Ash
2 jam lalu
There is still a supply of magma in the body of Mount Lewotobi Laki-laki, indicating the potential for another explosive eruption.
My Chemical Romance to Take the Stage in Indonesia, Here's Their Profile
2 jam lalu
The arrival of My Chemical Romance in Indonesia is not a solo concert. They are one of the performers at music festival Hammersonic 2026 in Indonesia.
Why Was UN Special Rapporteur Francesca Albanese Targeted by the US?
3 jam lalu
Francesca Albanese is a UN special rapporteur who often criticizes Israel's atrocities against Palestinians. The US is urging the UN to dismiss her.
Indonesia Will Continue Investment, Import Push Despite 32% US Tariff
13 jam lalu
Indonesia will keep its investment and import offers on the table, even if a 32 percent tariff is imposed.
Minister: Indonesia Mulling Sea Travel for Hajj, Umrah
14 jam lalu
The government has previously relied on the sea route to organize Hajj pilgrimage.
Why Indonesia Remains Optimistic About Its U.S. Tariff Odds
14 jam lalu
The Indonesian government remains optimistic about trade negotiations with the United States despite the recent tariff announcement by President Donald Trump.
Indonesia, Japan Launch Trade Training for African Countries
16 jam lalu
The Indonesian government opens trade cooperation training for African countries as an effort to strengthen South-South collaboration.
Achmad Maulana and Cahya Supriadi Share Their Hopes in the Indonesia U-23 Team
17 jam lalu
While training with the Indonesian U-23 National Team, Achmad Maulana and Cahya Supriadi expressed their hopes.
Indonesia Prepares These Two Strategies to Counter U.S. Import Tariffs
17 jam lalu
Indonesian government is preparing two strategies to respond to the imposition of a 32 percent import tariff from the United States.
