Trump Tariffs, Industries of 10 Export Commodities in West Java Will Be Bigly Impacted

BANDUNG, KOMPAS - President Donald Trump has imposed an import tariff of 32 percent on Indonesian products entering the United States. This policy is considered to have a significant impact on the businesses of 10 main commodities from West Java that have been exported to the United States.

Based on data from the Central Bureau of Statistics as of January 2025, the largest export destination from West Java is the United States (US). The export value amounts to 499.53 million US dollars, equivalent to Rp 8.2 trillion at the current exchange rate.

There are 10 major export commodities from West Java to the United States, including knitted goods and clothing accessories, footwear, rubber, ready-made garments, electrical machinery and equipment, as well as mechanical machinery and equipment.

"Other commodities include household furniture, toys, leather goods, as well as vehicles and their parts," said the Head of the West Java Industry and Trade Office, Nining Yuliastiani, Sunday (6/4/2025).

Nining stated that Trump's tariff policy could make the prices of export goods more expensive in the U.S., potentially reducing competitiveness. As a result, demand for Indonesian products in the U.S. could decline, particularly in the textile, footwear, and automotive sectors.

He also assessed that West Java, as a province with export potential in the textile, footwear, automotive, and other manufacturing industries, will be significantly affected.

"This policy will also result in Indonesia being flooded with imported products as it becomes a target for competing countries facing higher entry tariffs into the U.S. market," he stated.

According to Nining, Trump's tariff policy should also be taken as an opportunity. Because, the tariff increase imposed by the US for Indonesia is lower than a number of other countries.

He argued that Indonesian products should have higher competitiveness in the US market. "The import tariff of our products is lower than China at 34 percent, Thailand at 36 percent, Vietnam at 46 percent and Cambodia at 49 percent," he explained.

This policy will also have an impact on Indonesia being flooded with imported products because it will be targeted by competing countries that are subject to higher import tariffs into the US market.

Nining stated that the West Java Provincial Government supports the central government in negotiating with the US to gain access and a trade scheme that benefits both parties.

He added that a number of policies taken by the West Java Provincial Government after Trump's tariff policy include simplifying regulations so that products are more competitive in the global market and encouraging 360 export companies affected by US policies to diversify their export market destinations.

Another effort is to encourage exporters to expand their export trading partners and increase production efficiency without cutting industrial workers.

"Other efforts are encouraging exporters from West Java to negotiate with potential buyers in the US to share the tariff burden or adjust prices," he added.

The Chairperson of the West Java Indonesian Employers Association (Apindo), Ning Wahyu Astutik, will put serious pressure on the industry in West Java, which is known as the center of labor-intensive industry and national exports.

Ning said that industries that depend on the US market will be forced to reduce production. The knock-on effect will be reduced working hours and even layoffs, especially in the garment, footwear and furniture sectors that operate in Bandung, Cimahi and Bekasi.

He hopes that the Indonesian government will take steps to renegotiate the trade agreement with the US and protect domestic industry, reducing dependence on export markets.

"We ask the central and regional governments to immediately come up with stimulus policies, facilitate alternative market access, and support for increasing the added value of local products," he said.