Asia

Indonesia business group backs US talks over tariffs

Indonesian furniture exports, of which 53 per cent ship to the United States, would be badly impacted, local media reported citing Abdul Sobur, head of the Furniture and Craft Association.

“This is significant and can certainly reduce the competitiveness of Indonesian furniture products in the US market,” he said.

The foreign ministry said the tariffs would have a “significant impact” on its exports to the United States, including electronics, textiles, footwear and palm oil.

It said it was taking “strategic steps” to mitigate the fallout from the new tariffs.

The United States is one of Indonesia’s top trading partners, and Jakarta enjoyed a US$16.8 billion trade surplus with Washington in 2024, according to Indonesian government data.

Washington appears to have particularly taken aim at countries that the United States has a large trade deficit with.

Data from the US trade representative office shows Washington’s goods trade deficit with Jakarta was US$17.9 billion in 2024, up 5.4 per cent increase on the year prior.

Indonesia’s Southeast Asian neighbours Cambodia, Laos and Vietnam were some of the worst-hit nations, with tariffs of more than 40 per cent imposed.

Source: CNA

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