Indonesian Electronics Exports Threatened by Trump Tariffs, Industry Urges Government Action

JAKARTA, investortrust.id – Indonesia’s export of electrical and electronic equipment to the United States faces mounting pressure following the imposition of a steep import tariff. In response, industry leaders are urging the Indonesian government to swiftly negotiate with Washington to prevent the disruption of a key export market and to protect the domestic industry from an influx of redirected global supply.

The Trump administration has announced a 32 percent import tariff on Indonesian goods, raising alarm among domestic manufacturers. The Indonesian Electrical Equipment Manufacturers Association, or APPI, emphasized the urgency of diplomatic intervention, citing the high demand for Indonesian electrical products in the US. According to Indonesia’s Central Statistics Agency, or BPS, exports in this category reached $4.18 billion in 2024, up from $3.45 billion the previous year.

“Indonesia’s electrical products are competitive globally, and government support is critical to sustaining the local industry,” said APPI Chairman Yohanes Purnawan Widjaja in a statement on Saturday, April 5.

APPI also called on the government to protect the domestic market from a wave of imports originating from countries hit by the US tariffs. These goods, potentially entering Indonesia at dumping prices, could undercut local producers and damage industrial resilience.

“Indonesia's domestic market is large and holds strong purchasing power. It must not become a dumping ground for displaced products,” Yohanes warned, adding that the risk of flooding was similar to what happened in the textile sector, where imported goods overwhelmed local production.

He further noted that Indonesia’s electronics industry remains heavily dependent on imported raw materials, making it less agile compared to manufacturing powerhouses like China, which enjoys abundant input resources and stronger supply chain advantages.

Meanwhile, the Indonesian Electronic Industries Association, or Gabel, has echoed APPI’s concerns, urging the government to enforce non-tariff measures (NTMs) to shield local industries. These include revising Trade Ministry Regulation No. 8/2024, designating specific port entry points, and expanding local content requirements known as TKDN.

“These policies are urgent risk management tools. We've been asking for them, and they need to be implemented now,” said Gabel Secretary General Daniel Suhardiman.

He stressed that Indonesia’s large consumer base makes it an attractive export target for countries looking to reroute goods previously bound for the US. Without protective action, the domestic market could be overwhelmed.

Daniel called on the government to maintain and strengthen TKDN regulations, which have proven effective in boosting domestic manufacturing, particularly through public procurement.

“Relaxing TKDN would lead to job losses and weaken investor confidence,” he cautioned. “The policy provides investment certainty and has brought significant job creation across industries serving public sector demand.”