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 Lobbies U.S. Government for Zero Tariff on Indonesian Garments

Washington, D.C., United States - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin Indonesia), Anindya Novyan Bakrie, has called for the establishment of a new trade partnership scheme between Indonesia and the United States that would allow Indonesian garments to enjoy the lowest possible import tariffs—ideally approaching zero percent.

This proposal was put forward following a meeting with Robbie Minnich, Vice President of the U.S. National Cotton Council (NCC), in Washington, D.C., on Thursday, May 1, 2025 (local time).

Anindya, commonly known as Anin, was joined by key Kadin Indonesia executives, including Erwin Aksa, Vice Chairman for Organizational, Communications, and Regional Empowerment Coordination, Benardino M. Vega, Vice Chairman for International Relations, and Tony Wenas, Vice Chairman for Downstream Industry Development.

“We’re exploring a potential agreement where, if we use U.S.-origin cotton to manufacture garments in Indonesia, and then export those garments back to the United States, the products could be eligible for significantly reduced tariffs—ideally zero percent,” said Anin.

He added that Kadin had asked the NCC to consider the proposal and help advocate for it with the U.S. government, particularly the U.S. Trade Representative (USTR).

“We know our government-to-government relationship is strong, and we hope to translate that into enhanced competitiveness for our garment producers,” he added.

Anin acknowledged that the proposal may face challenges, especially given competition from cotton suppliers in countries like China and Brazil, but he remained optimistic about the cooperation potential.

“I think the meeting went very well. This is a collaborative effort alongside the government, focusing on tariff policy, and we believe solutions are possible,” he said.

Anin also noted that Indonesia currently exports around USD 2 billion worth of goods per month, and that a more balanced trade relationship would open further opportunities for Indonesian exports—including garments, footwear, and electronics.

“We want to ensure that if the cotton is sourced from the U.S., they [the U.S. side] can help ensure our garments are subject to minimal tariffs, so they remain competitive and sell well in the U.S. market,” he emphasized.

He added that such a scheme would generate widespread benefits, particularly for the Indonesian textile and garment industry, which employs millions of workers.

“This would benefit not only companies and entrepreneurs, but also the millions of workers in Indonesia’s textile and garment sector,” Anin concluded.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry