Mitigating the Impact of Trump’s Import Tariffs, the Indonesian Government Ensures Exports to Non-Traditional Countries

JAKARTA — The Indonesian government is moving quickly to anticipate the impact of the 32 percent import tariff policy imposed by United States President Donald Trump.

Tony Prianto, Director of State Financial Risk Management at the Directorate General of Financing and Risk Management at the Ministry of Finance, stated that the tariff dynamics are causing concern for business actors.

This is because Indonesia’s trade still relies on conventional destinations such as the United States.

Tony emphasized that the government, through the Special Export Assignment Program (PKE), is expanding export markets to non-traditional regions, including Latin America, Africa, the Middle East, Eastern Europe, and South Asia.

“Regarding Trump’s tariffs, our exports to the United States will certainly be impacted, but one of the mitigation measures is shifting our focus to non-traditional export destinations,” Tony said at a Media Briefing in Labuan Bajo on Thursday (July 10).

The PKE program utilizes the National Interest Account (NIA) scheme, which allows the government to provide financing and insurance protection to exporters.

Tony explained that the NIA scheme supports exports that are commercially viable but not yet deemed viable by banks.

Through the Indonesian Export Financing Agency (LPEI), the government ensures that exports to non-traditional countries can proceed more safely despite security, logistical, and infrastructure risks.

“Exports to conventional markets are relatively comfortable because the infrastructure, insurance, and shipping are already in place,” he said.

“However, exporters to countries like Fiji and perhaps Zimbabwe often face significant challenges. PKE provides guarantees and financing,” he explained.

LPEI Acting Director of Business Development, Maqin U Norhadi, added that PKE Regional has been targeted at Latin America, the Middle East, Africa, and South Asia.

“This is an anticipatory measure that has been in place even before President Trump’s tariff policy,” Maqin said.

Meanwhile, Minister of State Secretary Prasetyo Hadi emphasized that Indonesia remains a member of BRICS despite the impact of additional tariffs.

“If we join BRICS, there will be consequences, whether we like it or not, we have to face them,” said Prasetyo at the Parliament Complex, Jakarta, Wednesday (July 9).

Prasetyo stated that the government will continue negotiations until the August 1 deadline.

“There are some opportunities there,” he said.

“Regarding the plan to reimpose a 10 percent tariff on BRICS members, we feel that is part of the decision,” Prasetyo said. (*)