KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Kadin Indonesia Pushes Strategy to Address 32% U.S. Tariff, Prepares Trade Diplomacy and Strengthens Supply Chains

Jakarta - The Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Novyan Bakrie, reaffirmed Kadin Indonesia’s readiness to support the government’s efforts in responding to the United States' (US) 32% tariff policy through trade diplomacy and the strengthening of national exports.

This was conveyed during the 2025 Halal Bihalal and Focus Group Discussion of the Indonesian Logistics and Forwarders Association (ALFI), themed “US 32% Tariff: New Challenges and Opportunities in National Export, Forwarding, and Logistics”, held at the 29th floor of the Kadin Indonesia Tower in South Jakarta, on Friday, April 25, 2025.

During the forum, Anindya—popularly known as Anin—announced that he and a Kadin Indonesia delegation would depart for the US with three main agendas: attending an energy transition conference in New York, holding meetings with the U.S. Chamber of Commerce in Washington, D.C., and participating in a Milken Institute seminar in Los Angeles focused on global financial issues.

Anin explained that at the Washington D.C. meetings, Kadin Indonesia would explore new opportunities to increase Indonesia’s exports and seek out “new counterparties” to help balance the trade relationship.

According to Anin, Indonesia currently enjoys a trade surplus of USD 18 billion with the US. One strategy to neutralize this figure is to relocate oil and gas imports, valued at around USD 40 billion.

“We’ve heard there’s a potential remedy. One such solution could be to relocate oil and gas imports worth USD 40 billion,” Anin stated.

“With that step, we hope to achieve a more favorable tariff and restore the Generalized System of Preferences (GSP) to a level more competitive than those of neighboring countries like Vietnam, which currently has a USD 130 billion surplus with the US,” he added.

Kadin Indonesia, he said, is also working to increase exports of key products such as electronics, garments, and footwear.

Anin noted that Indonesia holds substantial potential in non-traditional sectors such as moringa leaves and fisheries from East Nusa Tenggara—commodities that can be exported directly to the US without passing through other countries.

He also emphasized that in the next 60 days—referred to as a "quiet period"—Indonesia must act proactively to enhance exports.

On the other hand, Anin pointed out that the US is also working to expand its commodity exports to Indonesia, including soybeans, wheat, and cotton.

He cited the recent visit of the Cotton USA delegation to Indonesia as evidence of growing US interest in expanding cotton usage in Indonesia’s garment industry.

“Just two days ago, Cotton USA was here. They inquired about how their cotton could be used more widely so that when our garments enter the US market, they might be subject to lower tariffs, or possibly even 0%. Clearly, we’re not the only ones thinking strategically,” Anin explained.

With regard to logistics, Anin emphasized ALFI’s vital role as a data-driven player and integral component of Indonesia’s national supply chain.

He believes that Indonesia has a strong opportunity to emerge as a winner amid the new wave of global trade policy, which he referred to as “Trump 2.0,” following Vietnam and Malaysia’s advantages during the earlier “Trump 1.0” phase.

“This upcoming 1.5-year transition won’t be easy—but if this is a transition toward leveling up, then that’s acceptable,” Anin remarked.

Anin also stressed that Kadin Indonesia continues to strengthen its synergy with associations and provincial chambers. According to him, the two key stakeholders of Kadin Indonesia are the provincial chambers and associations like ALFI, which play a frontline role in advancing national industry and logistics.

Meanwhile, Indonesia’s Deputy Minister of Trade, Dyah Roro Esti Widya Putri—who also attended the event—added that the 90-day tariff pause imposed by the US represents an opportunity that must be fully utilized.

“As we know, the 32% tariff was temporarily imposed, and then it was reduced back to 10%. This became a blanket policy for most countries that did not respond—Indonesia being one of them. But what’s equally important is maintaining our relations with other key trading partners, such as the US and China,” Roro noted.

Furthermore, ALFI Chairman M. Akbar Djohan stated that the US tariff hike should serve as a momentum to reform Indonesia’s import trade governance and reinforce national logistics infrastructure.

He emphasized that supply chain disruptions must be leveraged as opportunities to accelerate logistics efficiency, both domestically and internationally.

“This is a golden moment to fast-track national logistics transformation, so it can truly become the backbone of smooth and efficient export-import flows,” Akbar concluded.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry