Jakarta. Indonesia’s textile industry has welcomed the United States’ decision to lower additional import tariffs on Indonesian textile products from a planned 32 percent to 19 percent, a move seen as strengthening the country’s competitiveness in the American market.

“This is already very good, and we appreciate the government’s maximum efforts,” Redma Gita Wirawasta, chairman of the Indonesian Filament Yarn and Fiber Producers Association (Apsyfi), told The Jakarta Globe on Wednesday.

While acknowledging that the 19 percent tariff remains a burden for exporters, Redma said Indonesia’s position is now much more favorable compared to its competitors. He pointed out that Vietnam and Bangladesh face higher tariffs of around 20 percent and 35 percent, respectively, giving Indonesia an edge in the US market.

“The additional 19 percent tariff is burdensome, but at least we can still compete with Vietnam, and even more so with Bangladesh, whose tariff remains at 35 percent. This is quite a relief,” Redma said.

Redma also said the reduced tariff could help protect jobs in Indonesia’s labor-intensive textile industry. “We are grateful that this tariff adjustment can help save many jobs,” he said.

The Indonesian Textile Association (API) had estimated that between 50,000 and 70,000 workers could lose their jobs if the higher 32 percent tariff remained in place.

Looking ahead, Redma urged the government and industry players to remain vigilant about the potential influx of cheap textile products from China if the US. imposes high tariffs on Chinese goods. Such a move could lead China to divert exports to markets like Indonesia, increasing competition for domestic producers.

After US President Donald Trump imposed tariffs of up to 245 percent on imports from China and Beijing responded with its own steep import duties, the two sides agreed to a truce to allow time for talks.

“What needs to be anticipated is how much tariff will be imposed on China. If China faces high tariffs, they may flood other countries, including Indonesia, with cheap products,” Redma warned.

Ready-made garments are among Indonesia’s largest export goods to the US, valued at $1.27 billion between January and May 2025, according to Berita Satu Research. Other top exports include sports shoes, palm oil, knitwear, and footwear.

The tariff reduction is part of a trade agreement announced by US President Donald Trump on Tuesday, under which the US will cut tariffs on Indonesian goods in exchange for Indonesia providing tariff-free access for American products. Trump stated on his Truth Social platform that Indonesia has committed to purchasing $15 billion worth of American energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft, including Boeing 777 wide-body jets, although he did not specify the timeline for these purchases.

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