Indonesia should defend itself in the face of the new demands from the United States to remove a number of unfair trade practices, according to experts. Some of these policies are necessary to safeguard Southeast Asia’s largest economy’s national interests, they argue.  ,
These so-called” trade barriers” were identified in a US Trade Representative ( USTR ) report released on March 31 that described the factors that prevent US companies from entering Indonesia.  ,
US President Donald Trump’s plan to impose a 32 % tariff on Indonesian goods was based on the National Trade Estimate (NTE ) Report on Foreign Trade Barriers for 2025.  ,
In light of the danger of tariffs, the USTR is leading the technical discussions with several nations, including Indonesia.
Lax copyright protection, prevalent corruption, and a complex bureaucracy are just a few of the obstacles identified by the document, which have been cause for concern for many businesses operating in Indonesia, whether they are US-owned or not.
But, experts did point out that the USTR record contains regulations that shouldn’t be regarded as trade restrictions.
Indonesia’s efforts to create its own digital payment system are among those that need to be protected by its own regional passions, such as trade restrictions and requirements that some components must be produced directly before a solution can be sold in Indonesia.
We require some of these measures to boost funding, protect our own manufacturing field, and boost our economy. Indonesia’s ability to meet all of these demands ( from the US) is unreasonable, according to Tauhid Ahmad, an economist from the Jakarta-based think-tank Institute for Development of Economics and Finance ( INDEF ).
Experts warn that without these policies, the island had run the risk of losing significant amounts of foreign investment, rising unemployment, and perhaps a recession.
At the end of an International Monetary Fund and World Bank Group conference in Washington, DC, many top Indonesian authorities met with their US counterparts over the proposed 32 % taxes that the US wants to impose on Indonesia.  ,
Since April 9, these taxes have been put on hold for 90 days, along with other “reciprocal” levies on imports from about 60 nations. All nations however have a 10 % base price in effect.
Airlangga Hartarto, the Indonesian delegation’s coordinate secretary for business, stated that Indonesia is willing to negotiate these trade barriers in trade for a lower price. It is also willing to purchase billions of dollars worth of US materials.
What Indonesia is offering in theory is appreciated by America, Airlangga told investigators on Monday. The secretary assured that any agreement between the two nations would be a “win-win option” despite declining to provide further details.  ,