The United States' imposition of a 19% import tariff on Indonesian products will take effect on August 7, 2025. This policy has raised concerns about a potential decline in exports, particularly in the textile sector, which has long been one of Indonesia's mainstay exports to the US.
However, the impact on national export performance will not be immediately felt. The General Chairperson of the Indonesian Filament Fiber and Yarn Producers Association (APSyFI), Redma Gita Wirawasta, stated that the significant effects of the policy will likely only be seen by the end of August 2025.
Redma acknowledged the possibility of a decline in exports to the United States because the country is likely to reduce its total import volume from around the world. However, he also sees opportunities that Indonesia can capitalize on. Tariffs imposed on products from China and India, Indonesia's two main competitors, are observed to be higher than those imposed on Indonesia. This opens up potential new market share that Indonesian businesses can fill if they are able to compete efficiently.
In terms of production costs, Redma explained that the tariffs do not directly burden domestic producers because the taxes are levied on importers in the United States. However, importers in the United States will likely demand price reductions from suppliers, which could impact Indonesian exporters' profit margins.
This situation encourages industry players to move beyond relying solely on the US market. Diversifying export destinations to other countries and strengthening domestic market share are recommended strategic steps to maintain the competitiveness of the national textile industry amidst global trade policy volatility.
Facing these new challenges, synergy between industry players and the government in creating policies that support exports and protect the domestic market is increasingly crucial for the textile sector to survive and thrive.