The Core Issue: Trump’s Tariffs

The United States has implemented new tariffs on imported goods, a move that is generating reactions worldwide. President Trump has stated the tariffs are designed to address trade imbalances and bolster the U.S. economy.

This is the declaration of our economic independence.
President Donald Trump

The tariffs, which include a ‘reciprocal rate’ applied to various countries, have drawn scrutiny from economic experts and government officials alike.

Indonesia’s Perspective: A Call for Adjustment

Dave Laksono, vice chairman of Commission I of the DPR, has cautioned the Indonesian government about the potential repercussions of the U.S.tariff policy. He suggests that these tariffs could affect Indonesia’s composite stock price index (JCI) and the rupiah exchange rate.

Mr. Laksono emphasized the need for Indonesia to adapt to the changing global trade landscape. he advocates for improvements across the board, from supply chains to natural resource management.

• Supply Chain Efficiency: Streamlining export-import customs processes.
• Logistical Costs: Reducing logistical expenses to enhance competitiveness.
• Human Resources: Investing in human capital to boost productivity.
• Natural Resources: Optimizing the management of Indonesia’s natural resources.

According to Mr. Laksono, proactive measures are essential to ensure Indonesia remains competitive in the global market.

we must be able to adjust to fix chain supply, Export-Import Customs, logistical cost, and also human resources as well as our natural resource management in order to continue to provide the best products at affordable prices for all markets in the world.
dave Laksono, Commission I of the DPR

The U.S. rationale: Addressing Trade Surplus

President Trump’s decision to impose tariffs stems from a perceived trade surplus that othre countries, including Indonesia, have with the U.S.The U.S. government aims to level the playing field and protect its economic interests.

The U.S. intends to utilize the revenue generated from these tariffs to reduce taxes and address the national debt.

The chart indicated that Indonesia applies a 64% tariff on goods from the U.S., while the U.S. will charge a 32% tariff on Indonesian goods sold in the U.S.

Economic Implications: A Two-Sided Coin

While the U.S. aims to benefit from the tariff policy, concerns are rising about potential negative consequences for both the U.S. and its trade partners. Mr. Laksono suggests that the tariffs could ultimately harm U.S.consumers.

Certainly,the ending must be responsible consumer.so it will also have an impact on the US community.
Dave Laksono, Commission I of the DPR

The situation calls for careful monitoring and strategic responses to mitigate potential economic disruptions.

The Path forward: Diplomacy and Negotiation

mr. Laksono urges the Indonesian government to pursue diplomatic avenues to renegotiate the tariffs.Maintaining open lines of communication and seeking mutually beneficial solutions are crucial in navigating this complex trade habitat.

Indonesia must implement drastic policies to continue to increase market confidence in Indonesia and explore every avenue there is diplomatically to be able to renegotiate the tariff.