The impact of US President Donald Trump's new 32% tariff policy on imported goods from Indonesia has the potential to cause mass layoffs in Indonesia. High import tariffs will increase the price of Indonesian products in the US market. This may lead to a decrease in the purchasing power of American consumers for Indonesian products.
If demand from the US decreases, production in Indonesia will also decrease. This will lead to a decrease in production which may force companies in Indonesia to reduce operational costs, one of which is by laying off workers.
Several industrial sectors in Indonesia that are export-oriented to the US are expected to be most vulnerable to the impact of this policy, including:
Labor unions estimated that within three months of the tariffs taking effect, around 50,000 workers in Indonesia were at risk of layoffs.
However, the latest information on April 10, 2025, shows that President Trump suspended the reciprocal tariff increases for 90 days for many countries including Indonesia. This delay provides some relief and time for Indonesia to negotiate and prepare the next steps. However, the potential negative impact of this tariff policy remains a concern.
Source: Kompas.com
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