Indonesia responds to U.S. tariffs with strategic measures

4/4/2025 5:57

The Indonesian government is taking strategic steps and intensifying diplomatic efforts to mitigate the impact of the U.S. 32 percent tariff on key exports, according to a press release from the Coordinating Ministry for Economic Affairs on Thursday.

The tariff, set to take effect on April 9, is expected to affect Indonesia's exports of electronics, textiles, footwear, palm oil, rubber, and fisheries to the U.S. market.

In response, the Indonesian government has begun assessing the potential economic impact and is preparing measures to mitigate risks.

Susiwijono Moegiarso, secretary of the coordinating ministry for economic affairs, said that the Indonesian government remains committed to stabilizing Government Securities yields amid global financial market uncertainty following the announcement of the U.S. tariffs.

"Together with Bank Indonesia, the government is ensuring the stability of the Rupiah exchange rate and maintaining foreign exchange liquidity to support business needs and overall economic stability," he said in the press release.

Beyond economic measures, Susiwijono said Indonesia is ramping up diplomatic efforts to address trade concerns.

He noted that President Prabowo Subianto has instructed the cabinet to implement structural reforms and streamline regulations, particularly those related to Non-Tariff Measures, to enhance Indonesia's trade competitiveness.

Indonesia is also working with Malaysia, the current chair of the Association of Southeast Asian Nations (ASEAN), to formulate a regional response, as all 10 ASEAN members will face similar U.S. tariffs, he added.