Jakarta. President Prabowo Subianto has approved the formation of three new task forces to tackle economic challenges faced by Indonesia in the wake of global uncertainties. The task forces will focus on addressing the impact of global economic turbulence, including the United States’ tariff policies and rising layoffs across various sectors.

Chief Economic Affairs Airlangga Hartarto announced the formation of the task forces in a press conference at the Presidential Palace in Jakarta on Monday.

Trade, Investment, and Economic Security Task Force

The first task force, called the Trade, Investment, and Economic Security Negotiation Task Force, will focus on continuing negotiations with the United States over import tariffs, particularly the tariffs imposed by former President Donald Trump. This task force aims to accelerate discussions to secure fair trade agreements for Indonesia, which is under pressure following Trump’s threat to impose a 32 percent tariff on Indonesian goods.

Minister Airlangga said Indonesia is aiming to conclude the tariff negotiations within 60 days, ideally before the high tariff comes into effect in early July. Currently, a baseline 10 percent tariff is in place. Over the past week, Airlangga has held talks with senior US officials, including Treasury Secretary Scott Bessent, top trade negotiator Jamieson Greer, and Commerce Secretary Howard Lutnick.

Job Creation and Layoff Mitigation Task Force

The second task force, the Job Creation and Layoff Mitigation Task Force, is aimed at tackling the rising unemployment and preventing further layoffs, especially in sectors heavily impacted by reduced export demand and cheap imports from China. Indonesia has recently experienced a wave of layoffs, with the textile and tech sectors being hit the hardest. Southeast Asia's largest textile manufacturer, Sritex, recently laid off 10,000 workers, and over 8,000 tech workers have lost their jobs since 2022, according to whistleblower platform Ecommurz.

Additionally, government budget cuts have led to significant job losses in the hospitality sector, especially in industries reliant on government bookings.

Deregulation Task Force

The third task force, the Deregulation Task Force, will focus on enhancing the investment climate and accelerating business permits. This strategic initiative is designed to streamline regulatory processes and encourage domestic business growth.

Airlangga said the task force would help address Indonesia's ongoing issues with investment barriers, such as local content requirements and non-transparent tax auditing processes. These regulations have been a source of tension, particularly with American companies like Apple, which faced difficulties in selling its iPhone 16 in Indonesia due to local content rules.

In the past, the Indonesian government has indicated plans to revise its local content policies, potentially adopting an “incentive-based” approach, with President Prabowo calling for more pragmatic and flexible regulations.

While Airlangga did not specify the individuals involved in the task forces, he said that their formation represents a critical step in addressing Indonesia’s most pressing economic issues and ensuring the country remains resilient amid global economic uncertainty.