Indonesian Government Scrambles to Counter US Tariff Impact

In response to the looming threat of significant job losses, Indonesian President Prabowo has directed his cabinet to swiftly devise strategies to safeguard employment. The government is currently evaluating how U.S. tariffs could devastate labor-intensive sectors, with a focus on textiles and shrimp processing.

Uncertainty Looms as Negotiations Continue

Mari Elka Pangestu, Vice Chair of Indonesia’s National Economic Council, highlighted the unpredictability of the next 30-60 days, given the ongoing discussions with the U.S. The administration has rolled out several measures to cushion the blow from the 32% tariff hike on Indonesian exports.

Strategic Measures to Mitigate Economic Fallout

Among the initiatives is the creation of a specialized task force aimed at tackling potential layoffs. Furthermore, Indonesia is looking to streamline regulations to boost foreign investment, including from American companies.

The tariff announcement by U.S. President Donald Trump on April 2 sent shockwaves through global markets. However, a subsequent delay for Indonesia and other nations has provided a window for diplomatic negotiations.