double-skinned crabsVietnamese crab exportergood crabexellent crab

US Tariff Cut Gives Indonesia Edge Over Vietnam, Bangladesh in Textile Exports

Erfan Maruf
July 16, 2025 | 11:29 am
SHARE
A man fishes across unloading activities at the New Priok Container Terminal One in Jakarta on July 1, 2025. (Antara Photo/Fauzan)
A man fishes across unloading activities at the New Priok Container Terminal One in Jakarta on July 1, 2025. (Antara Photo/Fauzan)

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.

ADVERTISEMENT

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.

Tags: Keywords:
Google Add Investor.id as a preferred source on Google +
SHARE

Related Articles


Business Oct 13, 2026 | 6:50 pm

Indonesia Targets Integrated Textile Industry with Rp 100 Trillion Investment

The initiative is part of a broader strategy to consolidate existing manufacturers and strengthen their competitiveness.
Business Oct 2, 2026 | 8:00 am

Indonesia’s US Trade Surplus Defies Tariffs, but Economists Warn Risks Remain

Indonesia posted a $12.47 billion surplus with the US in January-August 2026, up from $12.26 billion a year earlier.
Business Sep 22, 2026 | 9:56 pm

Indonesia’s Textile Sector Employs 4 Million with Room for Further Expansion

Indonesia’s textile industry employs around 4 million people and generates $12 billion in annual exports.
Business Sep 22, 2026 | 4:32 pm

Prabowo Meets BRIN Chief, Ministers to Boost Textile, Footwear Industries

Prabowo meets BRIN chief and ministers to discuss research-driven efforts to strengthen Indonesia’s textile and footwear industries.
Business Sep 21, 2026 | 10:27 am

US Defends Tariffs on ASEAN Amid $327.4 Billion Deficit

US says it wants to "bring reciprocity and balance" to its ASEAN trade ties amid double-digit tariff hikes.
Business Sep 12, 2026 | 10:33 pm

BRICS Indirectly Hits Out at Trump’s Tariffs, WTO Paralysis

BRICS doesn't want to see unilateral tariffs and a paralyzed WTO court system, all of which are linked to the US.
Business Sep 8, 2026 | 7:16 pm

Trump Tariffs Cripple EU Firms’ Confidence in ASEAN

As many as 81% of the surveyed European businesses admit that the US tariffs had weakened their confidence in ASEAN.
Business Aug 20, 2026 | 10:13 pm

'We Don't Export Plastic to US': Indonesia on ‘False’ Transshipment Scam Claims

Indonesia denies enabling Chinese goods, namely plastic packaging, avoid Trump's tariffs.
Business Aug 20, 2026 | 12:28 pm

Indonesia Denies US Accusation of Chinese Transshipment Scam

Senior minister Airlangga Hartarto says "Indonesia has never done transshipment", when asked about the US report.
Business Aug 19, 2026 | 8:06 pm

US Accuses Indonesia of Helping China Dodge Trump Tariffs

The US accuses Indonesia and dozens of other countries of being part of "China's shadow transshipment network".

The Latest


News 2 hours ago

UN Boss Wants to Fix Security Council as Indonesia Seeks Seat

Outgoing UN chief Guterres says the current permanent member setup at the Security Council fails to reflect today's realities.
News 2 hours ago

Saudi Flagship Investment Conference Pushed to 2027 after Houthi Attacks

The annual Future Investment Initiative (FII), often dubbed "Davos in the Desert", was originally scheduled to take place from October 26-29
Business 2 hours ago

Government Sets Aside Rp 1.3 Quadrillion for Final-Quarter Spending

Government spending has reached Rp 2.66 quadrillion, equivalent to 69.2% of the full-year budget target of Rp 3.84 quadrillion.
News 3 hours ago

Indonesia Probes 98 Corporate Wildfire Cases, Including Possible Foreign Links

Police investigate 98 corporate-related wildfire cases, including possible links to investors from neighboring countries.
News 4 hours ago

Students Plan Jakarta Protests to Mark Two Years of Prabowo's Presidency

Police have advised the public to avoid areas around the House of Representatives complex, the National Monument and the State Palace.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED