Jakarta - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Novyan Bakrie, welcomed the announcement of a 19% import tariff on Indonesian products entering the United States, as declared by U.S. President Donald Trump.

Anindya, often referred to as Anin, viewed the outcome of the government’s negotiations as a favorable result for Indonesia, especially when compared to many other countries. He believes this development presents a valuable opportunity to boost national exports.

“First of all, congratulations to the government. I believe this agreement is beneficial for Indonesia. This achievement deserves recognition, particularly considering that Indonesia currently enjoys a trade surplus with the United States,” said Anin on Wednesday, July 16, 2025.

While acknowledging concerns over why the tariff was not set lower, Anin emphasized that the rate is still comparatively moderate given global trade conditions.

He cited the example of Mexico, which faces a 35% tariff, and China with 30%. By contrast, the UK is subject to only a 10% tariff, but it runs a trade deficit with the U.S., unlike Indonesia, which maintains a surplus.

“Many people are asking, ‘Why 19%? Why not lower?’ But in light of Indonesia’s current position, this is relatively favorable. Indonesia runs an $18 billion trade surplus with the United States, so some form of tariff was inevitable. Still, this 19% rate is better than the previously discussed figure of 32%,” Anin explained.

Anin further noted that this agreement could significantly enhance bilateral trade between Indonesia and the U.S.

Kadin, he said, is optimistic that Indonesia’s exports to the United States could double within the next five years.

“I believe that trade, which currently stands at $40 billion, could reach $80 billion in the next five years. We should not only look at the benefits to the U.S., but also consider the advantages for Indonesia,” Anin stated.

To seize this opportunity, Kadin plans to hold meetings with domestic industry players, particularly in the textile, garment, footwear, and electronics sectors.

Anin stressed the importance of ensuring that production capacity can meet the anticipated surge in demand.

“We must avoid a situation where we gain preferential access, only for other, more expensive countries to benefit because we were not prepared,” he cautioned.

“We want to identify three key figures: First, how much investment is needed to increase capacity; second, how much we can grow our trade volume; and third, how many jobs can be created,” Anin concluded.