Gov't Explains Why Indonesian Textiles Hit with 47% U.S. Import Tariff

April 20, 2025 | 09:14 pm

TEMPO.CO, Jakarta - Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto, after his visit to Washington, the United States, this week, explained that currently Indonesian textile and garment products are subject to import tariffs reaching up to 47 percent, significantly higher than the previous range of 10 to 37 percent.

The tariff increase, according to Airlangga Hartarto, is a direct impact of the additional 10 percent import duty imposed by the United States government.

This extra duty is part of the tariff policy that was carried over and expanded from President Donald Trump's administration, which still affects trade between the two countries.

Airlangga explained that Indonesian textile and garment products have faced basic tariffs ranging from 10% to 37%, depending on the type and classification of the goods. With the new 10% additional import duty, the overall tariffs have significantly increased.

"With the implementation of an additional 10 percent import duty, the tariff becomes 10 percent plus 10 percent, or 37 percent plus 10 percent. Hence, the total tariff can reach 47 percent," stated Airlangga.

He also emphasized that this policy has a significant impact on the competitiveness of Indonesian export products in the U.S. market.

The additional costs arising from this tariff policy are considered to increase the burden on Indonesian exporters, especially because American buyers request that these additional costs be shared with the exporters, rather than solely borne by the buyer.

"This is a concern for Indonesia because this extra 10 percent increases export costs. And the buyers demand that the additional cost be shared," said Airlangga, quoted from Antara News Agency.

During his U.S. visit, Airlangga held several meetings with senior American officials, including a key discussion with U.S. Trade Minister Howard Lutnick. In their talks, both sides focused on resolving differences over import tariff policies through diplomatic negotiations.

Airlangga shared that the meeting led to an agreement between the two countries to pursue one to three rounds of negotiations, with the goal of reaching a resolution within the next 60 days.

“We hope that within 60 days, this framework will evolve into an agreement to be finalized between Indonesia and the United States,” Airlangga said.

As part of the negotiations, the Indonesian government also presented plans to strengthen economic cooperation, particularly in energy imports from the United States.

According to Airlangga, this has been communicated to the U.S. government as an effort to balance the trade balance between the two countries.

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