TEMPO.CO, Jakarta - Chairperson of the Association of Retailers and Mall Lessors of Indonesia (HIPPINDO), Budihardjo Iduansjah, said the 19 percent reciprocal tariff imposed by the United States on Indonesian products is unlikely to affect local Small and Medium Enterprises (SMEs).
He explained that imported goods from the US belong to a different market segment than locally produced goods, so they do not directly compete.
“For example, if the products coming in are clothes and shoes, they won’t impact domestic products. In fact, we want those products to be facilitated," Budihardjo said at the Modern Retail Indonesia Day (HARMONI) press conference held at the SMESCO Building in South Jakarta on Wednesday, July 23, 2025.
"US goods are in a different category. What we should really worry about is China. If China gets zero percent tariffs, that’s something we want to avoid," he added.
Budihardjo added that the availability of imported retail goods could actually boost trade and help promote shopping tourism.
“It’s a breath of fresh air for the retail sector. There’s a possibility that the most affordable American products might be found in premium outlets here. Maybe people from Singapore would come to Indonesia to shop,” he said.
He also noted that reciprocal tariffs and market access could encourage industries to relocate to Indonesia.
“This kind of relocation is driven by business-to-consumer activity. They enter Indonesia because it’s cheaper, so people from neighboring countries choose to shop here. It’s more about increasing retail spending,” he said.
However, Budihardjo emphasized the need for domestic incentives to discourage Indonesians from shopping abroad.
“Malaysia makes it easy for us to shop there. Thailand offers 50 percent discounts on hotels and flights. We need to counter that. We have to keep Indonesians from spending their money abroad. The flight discounts from the Finance Ministry have helped reduce that tendency somewhat,” he said.
Editor's Choice: Prabowo Surprised by Cynicism Toward Tariff Deal with Trump
Click here to get the latest news updates from Tempo on Google News
Indonesian Data Transfers to US Permitted Under Legitimate Interest, Says Minister
2 jam lalu
Minister of Communication and Digital, Meutya Viada Hafid, speaks about personal data transfer in the U.S.-Indonesia trade deal.
Indonesia Pushes for 0% Import Tariff from the US
5 jam lalu
Minister of Trade Budi Santoso stated that the government is pushing for an offer to have Indonesia granted a zero percent import tariff or duty from the United States.
Prabowo Surprised by Cynicism Toward Tariff Deal with Trump
8 jam lalu
Prabowo acknowledged that the US took a tough stance during the talks but emphasized his responsibility to protect Indonesian workers from layoffs.
Specifications of Boeing 777 Jets Featured in US-Indonesia Import Tariff Deal
19 jam lalu
As part of negotiations to persuade U.S. President Donald Trump to lower import tariffs, Indonesia will import Boeing 777 aircraft.
Philippines' 19% U.S. Tariff Matches Indonesia, Minister: "We Can Compete"
21 jam lalu
Budi Santoso is confident that Indonesia can still compete with the Philippines, which is subject to a 19 percent tariff on its exports to the U.S.
Indonesian Govt Says U.S. Personal Data Transfer Deal Pending 'Technical Discussions'
23 jam lalu
The agreement states that Indonesia will provide certainty regarding the ability to transfer personal data out of its territory to the United States.
Cyber Expert Highlights Pros and Cons of Personal Data Transfer Deal with U.S.
23 jam lalu
Cybersecurity expert urged the public not to jump to conclusions about the U.S.-Indonesia personal data transfer agreement.
U.S. Unveils Key Terms in Tariff Deal with Indonesia
1 hari lalu
In official joint statement released by the White House, the Trump's government said Indonesia will eliminate tariff barriers on 99 percent of goods.
US-Indonesia Trade Deal Covers Personal Data Transfer Provisions
1 hari lalu
The Indonesia-U.S. trade agreement mentions Indonesia's assurance to transfer personal data from its territory to the U.S.
Trump Announces 19% Tariff on Philippines in New Trade Deal
1 hari lalu
Like Indonesia, Trump sets a 19 percent import tariff for Philippine products exported to the U.S.
